Morning Report: April 17, 2012

Ahead of the Bell: Dow futures are trading up 62 points and S&P futures are trading up 8 points.  Bargain hunters have returned as investors’ appetite for riskier assets improve despite the back drop of Spain's finances. Spanish borrowing costs have almost doubled, but the debt laden nation managed to sell more government bonds at a better than expected auction. Banking stocks will once again be in focus after Goldman Sachs reported better than forecasted quarter results. 



  • On the economic calendar today, housing starts for March will be out before the market opens and it is expected to be 0.700M compared with 0.698 for February.  Industrial production for March will also be out before the market opens and it is forecasted to be 0.3% compared with a flat reading for the previous month. 

  • The dollar is down against the major currencies.  Gold is trading at $1,672. Crude oil is currently trading at $103 a barrel.

  • Yesterday, stocks were mixed after the biggest weekly decline of the year. The financial sector gains were led by Citigroup, following stronger-than-forecast growth in retail sales.

  • On CNBC today, Dick Bove of Rochdale Securities LLC, talked about the banking sector and growth.  Bove said despite lower interest rates from the Federal Reserve and the European crisis, we will see strong results in fixed income which will flow over to equities.  He expects the banking sector  to do very well, we have had 10 quarters where the banking sector has beaten estimates.  The 11th quarter will be no different, as he anticipates banks will beat estimates again, this will be the second highest quarter in the history of the banking sector.  Bove pointed out loans are up, cost are going down, deposits are up, bad loans are down which is great for the banking sector.  He is bullish on the economy, expects growth to pick up and sees a resurgence in the banking sector.   

  • Today is tax filing day, the deadline to file is midnight.

  • Happy Tuesday and have a nice day.

Monday’s Close


DJIA up 71.82 pts/+0.56%/12,921.41


S&P down 0.69 pts/-0.05/1,369.57


Nasdaq down 22.93 pts/-0.76/2,988.40


 


Tuesday’s Futures


Dow Futures up 62.00 pts/+0.48%


S&P Futures up 8.40 pts/+0.61%


Nasdaq Fut up 11.22 pts/+0.41%


 


Overseas Markets


FTSE +0.87%


CAC 40 +1.54%


NIKKEI 225 -0.06%


HANG SENG -0.23%


 


Overseas:  World stock markets were up today.  European markets are up on investors optimism on Spain’s better than expected bond auction.  Asian market are down on concerns of slowing growth in the region.


 


Economic Reports:  Housing Starts expected to be 0.700 at 8:30 a.m. and Industrial Production expected to be 0.3% at 9:15 a.m.


 


Top Headlines:    



  • Reports indicate Coty Inc. is urging shareholders of Avon Products Inc. (AVP) to ask the company to open up its books, as it needs more details to offer its best price for the company. 

  • The Federal Energy Regulatory Commission has approved the country's first liquefied natural gas plant in about 50 years.  This clears the way for construction to begin at Cheniere Energy (LNG) plant, Sabine Pass, LA. 

  • Reports indicate Toshiba Corporation is in talks to buy IBM Corporation's (IBM) point-of-sale terminal business, which includes the cash registers unit for about $850 million.         

Commodities/Currency:


Gold:up $4.82 to $1,657.85
Oil: up $0.85 to $103.77

EUR/USD 1.3133 +0.0001
USD/JPY 80.6250  +0.1990
GBP/USD 1.5953 +0.0056


 


Volatility Index (VIX): As of the close of business Tuesday, April 16, the VIX was flat at 19.55


Companies Reporting Quarterly Earnings:     


Goldman Sachs reports Q1 EPS $3.92, vs. Est $3.55.  The company also boosts quarterly dividend to 46C/shr from 35C


State Street reports Q1 EPS 85c, consensus 87c Reports Q1 revenue $2.42, consensus $2.33B.


Today’s Opening and Closing Bells:


 


Endeavour Silver Corp. moving from NYSE Amex to NYSE celebrate the company’s listing anniversary on the NYSE.  Bradford Cooke, Chairman & CEO, accompanied by company executives will ring the opening bell.


 


CR Magazine’s 13th Annual 100 Best Corporate Citizens will ring the closing bell.


 


  


Paras Madho


NYSE Euronext


Market Watch and Corporation Actions


(212) 656- 5404


 


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