U.S. markets take a cue from Europe, heading up on strong housing starts and a plunge in Spanish debt yields. Financials make a comeback after taking a beating yesterday. Jefferies soars after Q4 profit beats estimates. AT&T is up even though the company dropped its bid for T-Mobile yesterday. And Red Hat's poor forecast takes its toll.
European shares post gains after upbeat U.S. housing data. Short-term yields plunge in the latest Spanish Treasury bill auction and German business sentiment posts an unexpected rise. The Greek Finance minister announces the country is close to a deal with private creditors. Bank stocks are among the best European performers on the day and health care stocks slide on bearish news for two Astrazeneca drugs. In the U.S., builders are up, as are utilities. With Patrick Arbor, Shatkin Arbor, James Keenan, BlackRock, and Mike Murphy, Fast Money trader.
U.S futures begin the day up. Bargain hunting in Asia brings mixed day to markets as investors remain cautious over the euro zone. The market in Britain is lower but the rest of Europe is up as yields for short term Spanish bonds plummet. The euro gets a boost from better-than-expected German IFO data. Deutsche Telekom is down after AT&T announces it's pulling out of its $39 billion bid to acquire T-Mobile USA.
The U. S. markets are down after losing early gains. Financials weigh on the markets and an explosion at an Apple components factory in Shanghai creates concerns over iPad 2 production. Kingdom Holdings invests big in Twitter. And homebuilder sentiment rises for the third straight month, according to the NAHB.
European shares slide as the ECB's Draghi says nothing about bond buying in speech. The ECB's Constancio says a euro zone breakup is unthinkable. Spain's incoming PM wants to reduce the deficit by $21.6 billion. Saab plans to liquidate after a Swedish court accepts its bankruptcy application. Oil stocks fall on weak economic recovery. And ratings agency Fitch says it's skeptical about Europe's ability to tackle its debt crisis. With Keith McCullough, Hedgeye Risk Management.
U.S. futures are mixed. More gainers than decliners in Europe even though Fitch says a solution to the crisis is technically and politically beyond reach. The ECB announces plans to launch a 3 year liquidity operation on Wednesday. The death of North Korean leader Kim Jong il shakes already nervous Asian markets, as his son Kim Jong un takes over.