Apr 16 2014 | 4:33 PM
US equities pressed higher for a third straight day, with the Dow rising 162 points on Wednesday as improved sentiment surrounding Q1 earnings helped boost the broader markets. Also in focus was a slew of macro data out of China, mixed US economic data, and comments from Fed chair Yellen. All major S&P 500 sectors rose, with Materials and Industrials topping gains. Utilities and Healthcare somewhat lagged. Gold and Oil are fractionally higher while the greenback is relatively unchanged.
Similar to a speech earlier this month, Fed Chair Yellen highlighted the considerable slack in the labor market and heightened concerns about inflation discussed in both the March FOMC statement and minutes. She noted that she sees the chances of inflation rising substantially above 2% as significantly below the chances of it persisting below 2%. Overall takeaways seemed fairly dovish.
Specialist, Market Watch
Apr 16 2014 | 2:46 PM
U.S. equity markets rebounded after a weak performance last week and appear to be holding support levels set back in November 2013. Some positive results from financial bellwethers and solid economic data have fueled the positive sentiment. Here are three things that have driven the market this week:
Quite a few high profile names announced results this week, particularly in the financial sector. Citigroup shares rallied on Monday after the bank reported better than expected quarterly results which topped estimates on both lines. On Tuesday, Charles Schwab also saw their shares trade higher after beating estimates on both EPS and revenues. Wednesday results painted a different picture, with both Bank of America and Credit Suisse shares trading lower after disappointing EPS misses. Next week we will expect results from a wide range of companies including Halliburton, Travelers, AT&T, and Juniper Networks.
Managing Director, Global Corporate Client Group
Apr 16 2014 | 10:05 AM
From The Trading Floor: This morning we are getting an early bounce in equities, not dissimilar to yesterday, on good earnings and economic reports
- Mortgage Applications for the week ending April 11th rose by 4.3%
- Housing Starts for the month of March rose to 946,000 from the revised 920,000 the month earlier but fell a little shy of consensus.
- Industrial Production rose by 0.7%, more than forecast in March after a February gain that was twice as big as previously estimated.
- The Fed releases the Beige Book results at 2:00
- Moeils & Co. (MC) priced 6.5 million shares at $25. It opened at $27.00 on a print of 618,038 shares.
- China's GDP growth slowed to its lowest level in 18 months in Q1, moderating to 7.4% on year from 7.7% in Q4 but topping forecasts for 7.3%. The figure is below the government's target of 7.5%
- Ukrainian troops have entered the center of...
Managing Director, The Capital Markets Desk
Apr 16 2014 | 8:47 AM
Ahead of the Bell: Dow futures are trading up 64 points and S&P futures are trading up 8 points. Global stock markets are up today after China reported better than expected economic growth, which comes as a surprise to investors who had feared a much weaker outcome. The world's second largest economy reported a 7.4% increase in the first quarter, versus expectations of 7.0%. China's retail sales data came in better than forecasted but industrial output was a shade lower than expectations. Bullish sentiment also spread across the globe following a late rally in US markets in the previous trading sessions, however gains could be capped as Ukraine appears to be on the brink of civil war.
Director, Market Watch & Corporate Actions
Apr 15 2014 | 4:20 PM
Benchmark US stock indices finished on the plus side in volatile Tuesday trading. The Dow Jones Industrial Average, which had been down as much as 100 points at midday, closed 89 points higher as investors focused on a disappointing Empire Manufacturing reading, heightened concerns over the situation in Ukraine, and some upbeat earnings including Coca-Cola (KO) and Johnson & Johnson (JNJ). Defensive sectors Utilities and Energy led the afternoon rally while Telecomm and Discretionary lagged. Gold is sharply lower while the dollar edges higher.
Volatility in US and European markets were driven by new headlines surrounding Ukraine. The crisis had largely been on the backburner as a directional driver, but is getting more attention today after Kiev began a military operation to take back control of cities in eastern Ukraine seized by pro-Russian militants. The Operation appeared to get off to a...
Specialist, Market Watch