Market Updates: Citigroup Inc. (NYSE: C), J.P. Morgan Chase (NYSE: JPM), Sears Holding Corp. (NASDAQ: SHLD), Williams-Sonoma (NYSE: WSM)

Bond yields will continue to tighten relative to benchmarks next year as government stimulus programs fuel economic recovery, Citigroup Inc. (NYSE: C) analysts in London said in their outlook for 2010. “We see at least another 25 to 30 percent of tightening in credit spreads,” Hans Peter Lorenzen and Matt King said in the presentation. “Many of the long-term issues the world was grappling with earlier this year still exist, but with the policy-induced recovery they’ve either been dragged out over a longer period or postponed.” -Bloomberg

J.P. Morgan Chase Co. (NYSE: JPM) extended its reach in Europe on Thursday with the expected announcement that it will pay £1 billion ($1.67 billion) to take full control of the investment-banking and broking joint venture it set up with Cazenove Group in 2005. The buyout of J.P. Morgan Cazenove had been anticipated since the venture started and J.P. Morgan was granted an option to buy 49.9% it didn’t own from 2010. It more recently had been widely flagged in the press as imminent, and values the joint venture at £2 billion. –The Wall Street Journal

U.S. stock index futures pointed to a solidly lower open today, as a stronger dollar pressured commodities and investors awaited weekly jobless claims data. Sears Holding Corp. (NASDAQ: SHLD) reported a Q3 loss early this morning that narrowed from the prior year, as same-store sales at its Kmart division rose for the first time in several quarters. Sears was up 3.6 percent to $78.50 in light trading. With the unemployment rate above 10 percent and seen holding the economy back from a stronger recovery, investors will ponder the labor market with the released weekly jobless claims data at 8:30 a.m. EST. Analysts expect initial claims of 505,000, which would represent an increase from 502,000 posted last week. –Reuters

Williams-Sonoma (NYSE: WSM) shares rose 4.1% in pre-market trading. The company, which also owns the West Elm and Pottery Barn chains, earned $7.33 million, or 7 cents per share, in the third quarter, compared to a loss of $11 million, or 10 cents per share, in the same period a year ago. Revenue fell 3% to $729 million. -MarketWatch