The S&P 500 welcomed the New Year with a 2.5% rally after the United States Congress approved measures to avoid the fiscal cliff. According to the budget agreement, individuals earning below $400,000 will see an extension of their recent tax rates while those earning above $400,000 will see their top rate rise to 39.6%. However, the payroll tax will revert back to 6.2% from 4.2%, and the increase will affect most workers. Finally, the $109 billion sequester has been delayed for two months. The focus will now turn to raising the debt ceiling as another lengthy debate is likely to follow.
Today after the close the following companies are scheduled to report earnings: EOPN, LNDC
Futures are higher after hours: S&P 500 futures are +0.87 from fair value of 1457.27 and Nasdaq100 futures are +1.15 from fair value of 2741.90.
Tomorrow morning before the open four economic reports are scheduled to be released: 1) MBA Mortgage Index, 2) Challenger Job Cuts, 3) ADP Employment Change (Consensus 140k), and 4) Initial Claims (Consensus 365k) and Continuing Claims (Consensus 3200k).
Tomorrow before the open the following companies are scheduled to report earnings: CVGW, FDO, UNF, WOR