Post-FOMC Rally Continues

Economic Data

- (UK) Dec CBI Industrial Reported Sales: 61 v 30e
- (IE) Ireland Nov PPI M/M: 0.3% v 0.5% prior; Y/Y: 0.6% v 0.3% prior
- (BR) Brazil Dec IBGE Inflation IPCA-15 M/M: 0.8% v 0.8%e; Y/Y: 6.5% v 6.4%e
- (BR) Brazil Nov Unemployment Rate: 4.8% v 4.5%e
- (EU) ECB: 17 Banks to repay total €7.1B in 3-year LTRO Funds vs. 11.5Be
- (IN) India Forex w/e Dec 12th: $316.8B v $314.7B prior
- (BR) Brazil Nov Current Account Balance: -$9.3B v -$8.5Be; Foreign Direct Investment (FDI): 4.6B v $4.5Be
- (CA) Canada Nov CPI M/M: -0.4% v -0.2%e; Y/Y: 2.0% v 2.2%e; Consumer Price Index: 125.4 v 125.5e
- (CA) Canada Nov CPI Core M/M: -0.2% v +0.1%e; Y/Y: 2.1% v 2.4%e
- (CA) Canada Nov CPI (Seasonally Adj) M/M: -0.2% v -0.1; CPI Core (Seasonally Adj) M/M: 0.0% v 0.2%e
- (CA) Canada Retail Sales M/M: 0.0% v -0.3%e; Retail Sales Ex Auto M/M: 0.2% v 0.2%e

Energy and materials names are among the biggest gainers in the S&P500 this morning as broader equity markets move higher again this morning. Crude is moving sideways again this morning, with WTI around $55.70 and Brent is back around $62. Today is quadruple witching, driving above-average trading volume. As of writing, the DJIA is about flat, the S&P500 is up 0.28% and the Nasdaq is flat.

Fed dissenter Kocherlakota has issued a defense of his position on this week's FOMC statement. Kocherlakota accused the FOMC of failing to fulfill its price stability mandate as exiting highly accommodative policy is exacerbating the downward slide in inflation. Kocherlakota believes the Fed needs to keep interest rates close to zero until medium-term inflation expectations return to target.

Shares of Nike are down nearly 4% this morning despite the firm's decent second-quarter numbers. Margins were strong, sales in all geographies were up by double digits, but the firm's worldwide future orders guidance was only +7%, its lowest rate in a year. Carmax is up nearly 10% on very strong third-quarter results, while BlackBerry dropped around 6% in the premarket on weak revenues and anemic sales.

In a note out this morning, Morgan Stanley estimated Apple could sell up to 70 million iPhones this quarter, up from their initial estimates of around 62 million unit sales. Year-ago iPhone sales in the December quarter were 51 million units. UBS also predicted Apple would sell about 70 million iPhones in the quarter.

Looking Ahead

- Sweden and Slovenia sovereign debt rating to be published by ratings agencies
- 11:00 (US) Dec Kansas City Fed Manufacturing Activity: 7e v 7 prior
- 11:00 (CO) Colombia Q3 GDP Q/Q: 0.8%e v -0.1% prior; Y/Y: 4.2%e v 4.3% prior
- 12:30 (US) Fed's Lacker speaks on Economy in Charlotte, North Carolina
- 14:00 (AR) Argentina Nov Trade Balance: $0.5Be v $0.4B prior
- (CO) Colombia Central Bank Interest Rate Decision: Expected to leave Overnight Lending Rate unchanged at 4.50%