Morning Report: April 26, 2011

Ahead of the Bell: Dow futures are trading up 36 points and S&P futures are trading up 5 points.  Traders will be focusing on the Fed today as the FOMC commences its two day meeting which concludes tomorrow afternoon, followed by a ground breaking press conference.  Investors will be looking for signs about what the agency will do after its QE2 program ends in June.  Also, earnings will be in the spotlight with several Dow components due to report including Ford, UPS, Coca Cola, and 3M. 

  • On the economic calendar today, Case-Shiller  home price index will be out before the opening and is expected to decrease 3.2% in February after being down 3.1% in January.  Also, the Conference Board will release its consumer confidence index for April after the opening which is expected to be up slightly.  Other companies reporting earnings include Lorillard, Coach, and Office Depot.  The dollar is up against the euro and down against the British pound and Japanese yen.  Crude oil is currently trading about $111 a barrel.           
  • Yesterday, stocks fell as investors were cautious ahead of the FOMC meeting. The technology sector was higher and commodities including gold and silver traded higher, crude oil closed just below $112 a barrel.
  • On CNBC today, Dan Bartlett, former Communications Director to President George W. Bush, talked about prepping Ben Bernanke for his appearance before the press tomorrow.  Bartlett said the Fed Chairman is pretty good on his feet and expects that he will handle it quite well.  Bernanke’s prior congressional testimony experience should help him during his appearance.  Bartlett believes the Chairman will be very careful with what he will say and would advise him to get in and out without saying too much and to keep his options as open and flexible as possible.      
  • Happy Tuesday, have a nice day.  

Monday’s Close

DJIA down 26.11 pts/-0.21%/12,479.88

S&P down 2.13 pts/-0.16%/1,335.25

Nasdaq up 5.72 pts/+0.20%/2,825.88

Tuesday’s Futures

Dow Futures up 36.00 pts/+0.25%

S&P Futures up 5.50 pts/+0.40%

Nasdaq Fut up 8.25 pts/+0.35%

Overseas Markets

FTSE +0.34%

CAC 40 +0.27%

NIKKEI 225 -1.17%

HANG SENG -0.54%

Overseas:  World stock markets were mixed today.  European markets are trading higher on positive corporate results.  Asian markets were lower on disappointing corporate results. 

Economic Reports:  Consumer Confidence is expected to be 64.4 @10:00 a.m.   

Top Headlines:    

  • Aegon NV (AEG) announced it is selling its Transamerica unit to Scor SE for about for $912.5 million.
  • Reports indicate Alcatel-Lucent (ALU) is seeking buyers for its enterprise business which is valued at approximately $1 billion.
  • Investigators have found that the Southwest Airlines (LUV) plane which had a nearly 5-foot-long hole open during flight had defective rivet holes where two parts of the fuselage were assembled.
  • Proctor & Gamble (PG) said it plans on raising prices for Pampers diapers, Charmin toilet paper and Bounty paper towels because of rising costs for pulp, oil and gas.
  • Oracle Corp (ORCL) announced President, Safra Catz has been named chief financial officer following the resignation of the current CFO, Jeff Epstein.


Gold:down $4.33 to $1,502.85

Oil:down $0.38 to $111.97

EUR/USD 1.4609 +0.0030

USD/JPY 81.6850  -0.1300

GBP/USD 1.6483 -0.0010

Volatility Index (VIX): As of the close of business Monday, April 25, the VIX is up 1.06 pts to 15.77

Companies Reporting Quarterly Earnings:   

Ford (F): Q1 EPS of $0.62 beats by $0.12. Revenue of $33.1B (+17.8% Y/Y) beats by $3.41B.

3M Company (MMM): Q1 EPS of $1.49 beats by $0.05. Revenue of $7.31B (+15.2% Y/Y) beats by $0.37B.

Lockheed Martin (LMT): Q1 EPS of $1.55 beats by $0.04. Revenue of $10.63B (+3% Y/Y) beats by $0.06B.

Delta Air Lines (DAL): Q1 EPS of -$0.38 beats by $0.12. Revenue of $7.74B (+13% Y/Y) beats by $0.13B.

Lorillard (LO): Q1 EPS of $1.71 beats by $0.14. Revenue of $1.05B (+14.4% Y/Y) beats by $0.09B.

McGraw-Hill Companies (MHP): Q1 EPS of $0.39 beats by $0.02. Revenue of $1.28B (+7.6% Y/Y) beats by $0.02B.

Coach (COH): FQ3 EPS of $0.62 beats by $0.02. Revenue of $951M (+14.4% Y/Y) beats by $4M.

Office Depot (ODP): Q1 EPS of -$0.05 vs consensus of $0.02. Revenue of $2.97B (-3.2% Y/Y) in-line.

Hershey Foods (HSY): Q1 EPS of $0.72 beats by $0.02. Revenue of $1.56B (+11.1% Y/Y) beats by $0.08B.

Tellabs (TLAB): Q1 EPS of -$0.03 in-line. Revenue of $322M (-15% Y/Y) misses by $4M.

Celanese (CE): Q1 EPS of $0.96 beats by $0.14. Revenue of $1.58B (+14.5% Y/Y) beats by $0.07B.

Cummins (CMI): Q1 EPS of $1.75 beats by $0.31. Revenue of $3.86B (-6.7% Y/Y) beats by $0.26B.

Synovus Financial (SNV): Q1 EPS of -$0.09 beats by $0.03. Revenue of $M (+% Y/Y) beats by $M.

Today’s Opening and Closing Bells:

BlackRock Inc., Visits NYSE to Celebrate Recent Launch of Resources and Commodity Strategy Trust Denis Walsh III, Managing Director, BlackRock, will ring the opening bell.  

Avalon Rare Metals (NYSE Amex: AVL) visits the NYSE. Donald S. Bubar, M.Sc., P.Geo, President and CEO will ring the closing bell.