It has to count as a sign of progress that the drawn-out Greek negotiations have been unable to spook the markets yet, as would have been the case last year. Investors appear to be pricing in that the country will be able to clinch a fresh bailout from the IMF/ECB/EU troika and be able to ‘convince’ its private creditors to ‘voluntarily’ take losses on their Greek holdings. Only time will tell if this view represents pragmatism or wishful thinking deal, but suffice it to say that investors aren't overly concerned.
We have nothing major on the domestic economic calendar, except for Bernanke’s testimony to the Senate Budget committee on the economy later this morning. In his testimony to the corresponding House committee last week, the Chairman had characterized the pace of economic growth to be frustratingly modest. But we got the blockbuster January jobs report the day after his testimony, making many wonder if he will change his tune to the Senate committee this morning.
The odds are low that we will see a material shift in the tone of Bernanke’s comments, but it will nevertheless be useful to pay close attention to what he will be saying today. After all, the tone of Wall Street commentary on the U.S. economy has started shifting following the January jobs report, with many raising their estimates for first quarter GDP growth.
On the earnings front, we got an EPS and revenue beat from Coca Cola (KO), with the help of volume and pricing gains. Yum Brands (YUM) posted better-than-expected EPS and revenue numbers after the close on Monday. Anadarko Petroleum (APC) also came out with a positive surprise, though the company’s reported earnings were weighed down by a $4 billion payment to BP (BP) in lieu of its share of the Macondo well disaster. The British oil giant also had positive quarterly results this morning and announced its first dividend hike following the 2010 accident.
ANADARKO PETROL (APC): Free Stock Analysis Report
BP PLC (BP): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
YUM! BRANDS INC (YUM): Free Stock Analysis Report
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