The Day Ahead: Wholesale Inventories Only Data on the Calendar

The week ends with a very quiet day, at least in terms of data. Ahead of wholesale inventories, the dollar is weaker and equities are trading higher, in part owing to positive chain-store sales results from yesterday.

One hour before the opening bell, Dow futures are up 25 points to 10,909 and S&P 500 futures are up 2.75 points to 1,186.50. Over the last five trading sessions, the Dow has added 0.65% and the S&P has risen 1.70%.

The 2 year Treasury note is -0-01 at 99-26 yielding 1.093% and the 10 year Treasury note is -0-06 at 97-21 yielding 3.914%.

WTI crude oil is higher by 70 cents on the day to $86.09 per barrel, while Spot Gold is up 6.55 to $1,175.10.

Recent overseas data has also boosted equities. German exports rose 5.1% in February, beating expectations for 4.0% and following a 6.5% drop in January. In France, industrial production was flat in February, beating predictions that it dropped 0.3%. In the UK, output rose 5.0% in March, compared to the prior year, up from +4.2% a month before and higher than the consensus poll anticipating +4.4%.

Key Events Today:

Hearings-

9:00-- FCIC Hearings featuring former FNMA and OFHEO officials testifying

10:00 -- Wholesale Trade inventories fell 0.2% in January, subtracting from a 1% reduction in December. By contrast, sales moved up 1.3%, sending the ratio of inventories to sales to an all-time record low of 1.10  a new record low. In February, economists say to look for a gain of about 0.3%.

"Wholesale inventories surged in October and November but weakened over the subsequent two months," noted analysts from Nomura. "We expect a return to growth in February, with wholesale inventories rising by 0.3% m-o-m. If stock-building in the wholesale sector remains tepid, we may review our Q1 GDP estimate."

There are no monetary policy speeches on tap today