Morning Report: April 10, 2012

Ahead of the Bell: Dow futures are trading up 14 points and S&P futures are trading up 2 points after four straight sessions of losses. China reported better than forecasted exports data for March of $5.35 billion in surplus, while compensating for a slowdown in domestic demand, easing investors concerns that China's economy is set for a soft landing this year.

• On the economic calendar today, wholesale trade for March will be after the market opens and it is anticipated to be 0.6% versus 0.4% for the previous month. The dollar is up against the major currencies.  Gold is trading at $1,623. Crude oil is currently trading at $101 a barrel.


• Yesterday, stocks ended lower on weaker than expected jobs data for March, and rising inflation fears from China, along with the ongoing European debt crisis.


• On CNBC today, Lawrence Lindsey, President and CEO of The Lindsey Group, talked about tax fairness.  Lindsey thinks we need to come up with comprehensive tax reform if we want fairness in the US.  This means changing the base of the tax system and he suggested we take a look at the value added tax.  While Lindsey would like for everyone to pay their fair share of taxes, he called the Buffet Rule “substance free” and does not think the proposal will improve receipts or perceptions.


• Happy Tuesday and have a nice day.

Monday’s Close

DJIA down 130.55 pts/-1.00%/12,929.59

S&P down 15.88 pts/-1.14/1,382.20

Nasdaq down 33.42 pts/-1.08/3,047.08

Tuesday’s Futures

Dow Futures up 14.00 pts/+0.08%

S&P Futures up 2.40 pts/+0.06%

Nasdaq Fut up 7.22 pts/+0.12%

Overseas Markets

FTSE -1.02%

CAC 40 -1.70%

NIKKEI 225 -0.09%

HANG SENG -1.15%

Overseas:  World stock markets were down today.  European markets are down on lower than expected jobs data from the US.  Asian markets are also lower after Japan's policy makers decided against further policy easing.       

Economic Reports:  Wholesale Trade expected to be 0.6% at 10:00 a.m.

Top Headlines:    

• Alcoa Inc. (AA) kicks off first quarter earnings season after the bell today.  Reports suggest analysts are looking for lower than expected quarterly results, as companies have been unusually quiet about their guidance. 


• Facebook said it is acquiring Instagram, a developer of photo-sharing applications for $1 billion in cash and stock.


• Avon Products Inc. (AVP) has named Sherilyn McCoy its new CEO, a J&J executive, as the company tries to fend off takeover bids from rivals.      

Commodities/Currency:

Gold:up $3.10 to $1,623.85
Oil: down 0.51 to $101.91

EUR/USD 1.3074 -0.0066
USD/JPY 81.8576  -0.5925
GBP/USD 1.5830 -0.0061

Volatility Index (VIX): As of the close of business Monday, April 9, the VIX is up 2.11 at 18.11

Companies Reporting Quarterly Earnings:     

None as of yet.

Today’s Opening and Closing Bells:

President's Council on Financial Literacy - Financial Literacy Week will ring the opening bell.

Arabian American Development Company Visits NYSE To Celebrate Recent Transfer to the NYSE Nick Carter, President and CEO will ring the closing bell.

Paras Madho

NYSE Euronext

Market Watch and Corporation Actions

(212) 656- 5404

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