So, the Chinese government stepped in yet again last night with a liquidity infusion of 106 billion yuan to 11 financial institutions via mid-term lending facilities expansion.
That's about $17 billion in greenback terms. Not a whole lot of beans in terms of our markets, but a fairly big deal for the Chinese markets where average daily trading in terms of U.S dollars is about $120 billion-$150 billion per day -- at least from a psychological perspective for investors there.
As a result, Chinese markets closed higher by 1.5% and at the highs of the day as well.
On Wednesday, a last-hour decline whacked the Shanghai Index by 3%, which led to the infusion by the People's Bank of China after the close that day. Market participants here that were hoping for an additional beat-down in China overnight will more than likely be disappointed.
What remains to be seen is how long the Chinese government can keep pumping liquidity into its financial system every time there is a selloff.
This morning we have a plethora of news to deal with, including the European Central Bank's decision and ECB President Mario Draghi's conference Q&A. On our economic data newsfront we have the following due up within an hour and change: Initial jobless claims, Chicago Fed National Activity Index, FHFA House Prices, Existing Home Sales, Leading Indicators, and Kansas City Fed Manufacturing data.
After the close of trading, we have earnings from Amazon (AMZN), Alphabet (GOOGL, GOOG) and Microsoft (MSFT), among others.
Amazon is expected to report a loss of $0.13 per share on revenues of $24.91 billion for the September quarter. Wall Street analysts are currently modeling earnings of $1.58 per share on revenues of $35.2 billion for the December quarter. I am currently agnostic on the trade into earnings, although the action intra-day might make me change that stance.
Action Alerts PLUS holding Alphabet is expected to report EPS of $7.21 on revenues of $18.5 billion for its September quarter. For the December quarter, Wall Street is expecting EPS of $8.07 on revenues of $20.6 billion. It will be very interesting to see how the company breaks down its various operating segments since this will be the first report since the formation of Alphabet. I'd rather be a buyer here than a seller.
Finally, the "Soft One No More "(MSFT) will also be reporting earnings after the close of regular market trading this afternoon. Wall Street expects EPS of $0.59 on revenues of $21.03 billion for the September quarter. For the fourth quarter, the estimates move higher, with current consensus at $0.72 per share on revenues of $25.1 billion. I am agnostic on Microsoft.