Toyota (NYSE: TM) is taking major steps to fix glitches in their vehicles by adding more cars to its global recall while Europe is looking at ways to stave off a Greece-related crisis. As a result, the markets and exchange traded funds (ETFs) today seem to be getting a break.
About 437,000 Toyota Prius cars and other gas-electric models have been recalled worldwide to fix issues with their braking systems. Hiroko Tabuchi for The New York Times reports that Toyota is recalling 270 plug-in Priuses, 28,000 Lexus HS250hs, and 11,000 Sai hybrids. Older Priuses are unaffected by the problem. Moreover, about 7,300 late-model Camry’s are also on the recall list.
- iShares MSCI Japan Index (NYSEArca: EWJ)
Wholesale inventories dipped 0.8% in December as companies are too doubtful about the recovery of economies to sustainably restock their shelves. Martin Crutsinger for Associated Press reports that a full recovery won’t happen until businesses do restock their shelves to full capacity.
Small business confidence is up, as the outlook for sales improved for the first time in three months. Carlos Torres and Michael McKee for Bloomberg report that despite this, a majority of small businesses expect profit and employment to decline, showing why the Obama administration has announced new plans aimed at providing credit and tax breaks to small firms.
Michelle Chapman for Associated Press reports that Coca-Cola (NYSE: KO) is posting strong overseas growth and this is making up for its more sluggish U.S. numbers. Profits rose 55%, owing mostly to strength in India, China and Latin America.
The euro rose 1.4% after the prospect of financial aid for Greece was floated. Fabio Alves for The Wall Street Journal reports that the German government is putting together a rescue package for Greece, according to FT Deutschland, citing sources in the coalition government. Bilateral support and internationally coordinated assistance at the European Union level are both in the works.
- CurrencyShares Euro Trust (NYSEArca: FXE)
Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.