@ The White House
In the morning, the President and the Vice President will receive the Presidential Daily Briefing in the Oval office. Later in the morning, the President will meet with senior advisors in the Oval Office.
In the afternoon, the President will welcome the NBA Champion Dallas Mavericks to the White House to honor the team and their 2011 NBA Championship victory. The President will also recognize the Mavericks? ongoing support to the men and women who serve in our military and their families.
Later in the afternoon, the President and the Vice President will meet for lunch in the Private Dining Room. In the evening, the President will attend a campaign event in Washington, D.C.
Later in the evening, the President will deliver remarks at a campaign event in Washington, D.C.
@ Wall Street
The economy added 200K jobs in December, but markets simply didn?t care. Early-week optimism over positive manufacturing data from China initially lifted stocks, but major indices moved mostly sideways after that and even declined immediately following the positive jobs report. Instead, an increase in Italian bond yields above 7% loomed larger as a sign that the debt crisis is far from resolved. On cue, the ECB stepped up its purchases of Italian debt on a contingent basis. But markets were left wondering how far the central bank will have to be pushed before it opens wide the spigot.
Nevertheless, the Tuesday morning boost was enough to lift stocks for the week. The S&P500 gained +1.8% while the Dow gained +1.4%. 10-year Treasury rates briefly moved above 2%, but fell back to 1.95% by the end of the week. Gold prices moved back above $1,600 while Brent crude oil prices were little changed. The dollar appreciated against most major currencies, and 2% against the euro.
Looking ahead, Europe will have to share headlines with fourth quarter corporate earnings when Alcoa kicks off the reporting season this coming week. Profits growth held up strongly through most of 2011, even while economic growth sagged. But expectations for the fourth quarter are unusually subdued outside of Financials, with year-on-year EPS growth estimates weaker than previous quarters and down sharply from a few months ago. Actual results have a way of surprising to the upside, but a few bad results from some big name companies could add to market volatility.
Also on the docket for the coming week is the latest data on retail sales, consumer sentiment, and international trade. Retail sales likely gained slightly in December, but without help from autos. Holiday sales were probably solid, but volume increases were probably less impressive because ? even with discounting ? prices were running higher than a year earlier. Consumer moods are improving with the jobs market and lower gas prices, and the Reuters/Michigan Consumer Sentiment Index is seen gaining in early January. Sentiment is now catching up to spending. The trade gap probably widened in November as higher oil prices boosted the import bill and exports were flat.