Morning Coffee Break - Friday March 22

As we get ready to start the final session of the week traders will be without a doubt will be focused on the developments in Cyprus.  Or should I say lack of development as Cyprus leaders’ hopes for a Russia bailout loan has fallen part and are going into the weekend with no deal and the European Central Bank deadline set for Monday in which they will stop current emergency bailout lending.

The market has been attempting to price in the Cyprus crisis with the market reacting as something positivity will happen in Cyprus on one end to a meltdown on the other end and yesterday its was clear to the market Cyprus current plan was in trouble with largest downside slide since February 25 and are now on target for largest weekly loss for 2013

U.S. Economic Reports On Deck

Traders will get a full day to digest the yesterday’s busy economic data release today as we have no additional economic reports due out today.

Morning Coffee Break's Current Benchmarks

S&P 500 futures are flat at 1539.0

EUR/USD  ticked higher to 1.2931.

U.S.10-year Treasury bond yields are at 1.906%

Gold ticked lower by -0.18% to $1,610.90.

 

Commodities

During the overnight in electronic trading commodities futures traded mixed with Dr. Copper continuing its rebound on hopes on China ability to continue to rebound and gold taking a breather slipping -0.18% ahead of the U.S. final session this week.

On the energy front WTI Crude oil found a bid and began to move higher by 0.41% to $92.86 this morning. While Brent crude oil is slightly higher during the European session by 0.12% to $107.60

Currencies Markets

Currency markets continue to be mixed during yet another day with all eyes on euro zone member Cyprus. The EUR/USD ticked higher to 1.2931 and the Yen show signs of strength as the USD/JPY ticks lower to 94.60.  The U.S. dollar overall strength measured by the U.S. dollar index has fallen to 82.76 down -0.14%.  The GBP/USD is the pair to watch going into the weekend and next week.  With over a 154 pip decline since the beginning of the year the GBP/USD’s turn higher this week has fallen short of breaking above the downward trendline that starts at the beginning of 2013.  If the GBP/USD fails to break above the trendline look for price to continue another leg lower.

 

Morning Coffee Break Earnings Watch

Darden Restaurants (DRI, quote) Darden owns such brands as Olive Garden and Red Lobster restaurants.  We want to watch closely the Oliver Garden numbers and see if there are signs of recovery for the brand.

On the luxury side Tiffany (TIF, quote) schedule to report as well today and should provide readers a look into luxury spending.  Is it slowing?

 

Morning Coffee Break's Stock Pre-Market Stock Watch

Dell’s (DELL, quote) 45 day “go-shop” lockup period for buyout offers ends today.  The board now has to entertain offers and its looks like Blackstone Group (BX, quote) has the best offer on the table with a bid said to be above CEO Michael Dell’s of $13.65 per share.  Current price before the open is $14.14

Citigroup (C, quote) shares in the pre-market have actually climbed higher by 0.46% as it fights the news out of Cyprus fears.  Keep an on eye all the major banks as they deal with Cyprus.

 

Morning Coffee Break' Bottom Line

Although it looks like we might be set for a small bounce after yesterday's red tape Cyprus will be influencing our markets as the leader failed to obtain a bailout from Russia and the European Central Bank said it will stop bailing out Cyprus and send cash to the country for its ATM machines on Monday unless it can raise the some 5 plus billion in euros to secure the ECB bailout.  Be careful at the final hour of trading today.  If we going to the weekend with no plan “C” we could see a traders taking off risk prior to the close.  Good Luck Trading!!!  Have a great weekend!!!