Dollar stronger again; bond rout continues. Stock futures dropped a bit as GDP revision came in in-line, up 0.9 percent from 0.6 previously.
Morgan Stanley out with a long note on business travel this morning, not surprisingly with the title, "Business Travel Fundamentals Worsening." A summary:
1) room rate renegotiations, which first surfaced with financial business travelers, is now spreading to other sectors;
2) group cancellation rates are increasing.
3) rising airfares, already impacting leisure travel, will impact corporate travel this year.
They cut their ratings on Marriott
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] , and reduce the price target to $40 from $47. Marriott closed at $34.14. They go further: "...we do not recommend putting new money into lodging with the exception of stocks with unique catalysts." Elsewhere:
1) We have been getting retail earnings reports for the past week, with mixed results.
a) Men's Wearhouse
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] reported earnings a bit below expectations, and guidance for the quarter and full year appears a bit below expectations as well. Down 6 percent pre-open. b) Big Lots
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] and Costco [COST 73.24 --- UNCH (0%) ] beat expectations; Big Lots up 8 percent pre-open as they raise their full year guidance slightly. Costco reported good comp store sales growth--U.S. up 6 percent, international up 16 percent. 2) NYSE IPO: Safe Bulkers (SB), a marine drybulk shipping company, priced 10 million shares at $19, below the expected range of $20 to $22 a share.
3) German chip maker Infineon
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] down about 12 percent pre-open, after they lowered their outlook for their communications unit. Bob Pisani's Trader Talk: Morgan Stanley Says Business Travel Suffering - Trader Talk with Bob Pisani - CNBC.com
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