NYSE Morning Update 04/17/2014

Ahead of the Bell: Dow futures are trading down 13 points and S&P futures are trading down 2 points. The threat of a civil war in Ukraine and disappointing quarterly results from IBM and Google might unnerve investors already shaken by a strong recent selloff in tech stocks. Since early March, the tech-heavy sector has declined over 6%, underscoring the challenges internet and IT companies face as corporate results are due this week. IBM blamed lower than expected earnings on weak demand from emerging markets, while Google reported margins narrowed on declining advertising. Reports indicate pro-Russian forces attacked a Ukrainian national guard base overnight and Kiev said three separatists were killed. Fed Chair, Janet Yellen said achieving the central bank's economic goals "will likely require low real interest rates for some time."  


 



  • On the economic calendartoday, jobless claims for the week ended April 12th will be released before the market opens and 312K is expected, up from 300K the week prior.  The Philadelphia Fed Survey for April is due out after the market opens and a reading of 10.0 is forecasted, slightly higher from a 9 in March.

  • The dollar is up against the Japanese yen and down against euro and the British pound. Gold is trading at $1,302. Crude oil is currently trading at $103 a barrel.

  • Yesterday, stocks rose, with the S&P 500 Index headed for its best three-day rally in two months, as Yahoo! Inc. earnings topped estimates and industrial production gained more than forecast.

  • On CNBC this morning, John Ryding, Chief Economist at RDQ Economics LLC discussed the Feds full employment outlook.  Ryding said what Yellen is telling markets is that interest rates will remain low until the employment situation improves.  If inflation and employment is not within the Fed’s range then interest rates will remain low for a while. What is new is the agency is becoming more flexible to inflation and the economic data.  He believes the unemployment rate will be about 6% by the end of the year, as fewer people will be seeking jobs.  Ryding added the participation rate will remain flat as aging demographic takes effect.

  • All US markets will be closed on Friday, April 18thfor Good Friday.  Banks will be open.

  • Have a wonderful Easter weekend!

Wednesday’s Close


DJIA up 162.29 pts/+1.00%/ 16,424.85


S&P up 19.33 pts/+1.05%/ 1,862.31


Nasdaq up 52.06 pts/+1.29%/ 4,086.23


 


Thursday’s Futures


Dow Futures down 13.00 pts/-0.08%


S&P Futures down 2.25 pts/-0.06%


Nasdaq Futures up 5.75 pts/+0.16%


 


Overseas Markets


FTSE +0.11%


CAC 40 +0.15%


NIKKEI 225 -0.01%


HANG SENG +0.28%


 


Overseas:  Global stock markets are mixed today.  European and Asian markets are lower over the threat of civil war in Ukraine and disappointing manufacturing data from Germany, following weaker than forecasted corporate results from US companies. 


 


Economic Reports: Jobless Claims (312K expected) at 8:30 a.m.; Philadelphia Fed Survey (10.0 expected) at 10:00 a.m.


 


Top Headlines:    



  • Reports indicate cereal maker Post Holdings Inc., (POST) is close to a deal to acquire eggs and dairy producer and distributor Michael Foods Group Inc., for $2.5 billion, prevailing over a rival bid from Tyson Foods Inc, (TSN).

  • According to reports, the Federal Reserve indicated to Citigroup Inc., (C) that the bank would get more time to fix certain "stress test" planning problems before rejecting its capital plan in March. 

 


Commodities/Currency:


Gold:down $2.40 to $1,302.30
Oil:up $0.03 to $103.81

EUR/USD 1.3858 +0.0043
USD/JPY 102.1550 -0.0890
GBP/USD 1.6809 +0.0012


 


Volatility Index (VIX): As of the close of business Wednesday, April 16, 2014 the VIX is down 0.50 at 15.61.


Companies Reporting Quarterly Earnings:


Goldman Sachs reports Q1 EPS $4.02, vs. Est $3.49 and Q1 revenue $9.33B, vs. Est $8.7B.


Blackstone reports Q1 ENI 70c, vs. Est 55c and Q1 revenue $1.51B, vs. Est $1.26B.


Honeywell reports Q1 EPS $1.28, vs. Est $1.26 and Q1 revenue $9.68B, vs. Est $9.74B.


Today’s Opening and Closing Bells:


 


Leju Holdings Limited(LEJU) will visit the New York Stock Exchange (NYSE) to celebrate the company’s IPO. To mark the occasion Chairman, Mr. ZHOU Xin, and Chief Executive Officer, Mr. HE Yinyu, will ring the Opening Bell.


 


CONSOL Energy will visit the New York Stock Exchange (NYSE) to mark the company’s 150th anniversary of founding.  CONSOL Energy is also celebrating 15 years of trading on the NYSE.


 


 


 


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