THURSDAY 2/5/15; BOE Rate Decision; CMI; DNKN; GRUB; KORS; PM; S; USG; Open-Outcry Futures Trading Ending; Challenger Job-Cut Report; International Trade; Productivity and Costs; Oil Rallies; US Stocks Rally; SPX, INDU, COMPQ and RUT Turn Positive on the Year; AAPL All-Time Record High; TWTR; GPRO; LNKD; YELP; P; LGF; YRCW

Trading in Asia is underway as Wednesday evening continues in the States at 9:20 PM EST. The NIKK is down -1% out of the gate. Ditto the Shanghai Index. The SPASX200 is up +0.6%. US futures are weak. S&P -9. Dow -72. Nasdaq -21. Euro 1.1349. Dollar/yen 117.06. Pound 1.5188. Aussie dollar 0.7775. Gold 1272. Silver 17.46. Copper 2.57.

US Treasury yields are; 2-year 0.48%, 5-year 1.24%, 10-year 1.74%, 30-year 2.34%.

Asian indexes end mixed with a downward bias. The NIKK ends down -1%. McDonald’s Japan trades down -1% after posting a loss due to food safety issues and lack of supply of French fries. Same store sales plummet -40% due to the food scandal. Mazda Motor drives into a ditch losing -3% after missing on earnings. Hitachi commits hari-kari down -10% on weak results. SNE launches like a rocket up +20% yesterday and today after reporting earnings showing a loss less than expected.

The SPASX200 ends up +0.6% receiving a boost from the banks. The KOSPI loses -0.5%. Shinhan Financial collapses -5% after reporting weak earnings.

The SSEC loses -1.2%. Chinese banks end the session lower despite the lowering of the triple R ratio’s that determine the amount of cash that banks must keep on reserve. The communist policy makers are concerned about the weakening Chinese economy. As much as China wants to institute economic reforms and proclaims they will not goose their economy and stock markets with easy money, PBOC goes down the same road as other nations. All countries on earth want to party during the good times but no one wants to take the pain of the downside when the party ends. The HSI gains +0.4%.

European indexes leak lower after












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 for average hourly earnings tomorrow is a month on month increase of +0.3%. Last month wages disappointed dropping -0.2% (wages are actually falling which indicates a move deeper into deflation) so any revisions of this number are key. Analysts are very optimistic expecting a +0.3% boost in wages but they are likely factoring in the standard minimum wage increases occurring at many companies to begin the new year.

The stock market may receive a boost from a happy wage number that is goosed by the minimum wage increases. Conversely, if the wage data is weak, and cannot even gain traction with the minimum wage tail wind, then markets may view this development as extremely negative since it indicates that six-years of Keynesian spending is failing. The average workweek is expected to remain steady at 34.6 hours.