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| | Asian Markets |  | | Shanghai | Hang Seng | NIKKEI | ASX |  |  |  |  | | | The major U.S. index futures are pointing to a higher opening on Wednesday, signaling that the momentum the markets built up in past two sessions may carry through into the session. Earnings news, especially from tech companies, has been encouraging, which may create a buying opportunity in beaten down tech stocks. That said, there have been disappointments as well. Housing starts data released a short while ago came in slightly soft. Against the backdrop, the markets may also focus on the industrial production report due to be released shortly.
U.S. stocks closed a volatile session on Tuesday mostly higher amid the release of positive earnings. The major averages opened higher and rose slightly in early trading only to give back their gains and retreat into negative territory by late morning trading. After languishing below the unchanged line until late afternoon trading, the averages recovered and advanced steadily before closing moderately higher.
The Dow Industrials ended up 89.32 points or 0.55 percent at 16,263 and the S&P 500 Index closed 12.37 points or 0.68 percent higher at 1,843, while the Nasdaq Composite Index ended at 4,034, up 11.47 points or 0.29 percent.
Twenty-three of the thirty Dow components closed higher, with Coca-Cola , Johnson & Johnson , Visa (V), Microsoft and Chevron leading the gains.
Utility and energy stocks gained ground, while Gold stocks retreated sharply.
On the economic front, the Labor Department reported that consumer prices rose 0.2 percent month-over-month in March. The annual rate of headline inflation rose to 1.5 percent in March from 1.1 percent in February, and the core annual inflation was at 1.7 percent. While food prices rose 0.4 percent, energy prices fell 0.1 percent.
The results of the New York Federal Reserve's manufacturing survey for April showed that manufacturing activity expanded at a slower rate. The general business conditions index fell to 1.3 in April from 5.6 in March, hitting the weakest level since November. The new orders index slipped to -2.8 from 3.3, while the order backlogs index rose 3.2 points but remained negative at 13.3. Meanwhile, the employment index rose 2.5 points to 8.16. The 6-month outlook index rose to 38.2 from 33.2.
The National Association of Home Builders reported that its housing market index rose 1 point to 47 in April, while it was expected to rise to 49. The current sales conditions index and the index measuring prospective buyer traffic remained unchanged at 51 and 32, respectively. At the same time, the index measuring sales expectations rose 4 points to 57.
With yesterday's upside, The Dow Industrials is now nestled between its key moving averages. That said, immediate support lies around the 16,219 level. If this level is violated to the downside, the index's 50-day MA currently at 16,200 and 100-day MA currently at 16,168 could serve as supports. Further below, the 16,066 level could also support the index. Overhead resistances for the index are seen around its 21-day MA currently at 16,325, 16,366, 16,429, 16,519 and 16,572.
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| | US Economic Reports | | | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department, although starts still came in well below analyst estimates.
The report showed that housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000. Economists had been expecting housing starts to surge up to an annual rate of 970,000 from the 907,000 originally reported for the previous month.
Federal Reserve Governor Jeremy Stein will participate on a panel on quantitative easing in Stone Mountain, Georgia at 8:30 am ET.
At 9:15 am ET, the Federal Reserve is scheduled to release its industrial production report for March. The consensus estimate calls for a 0.4 percent month-over-month increase in industrial production, while capacity utilization may have edged down 0.1 points to 78.7 percent.
Industrial production rose 0.6 percent month-over-month in February, bouncing back from a revised 0.2 percent drop in the previous month. Manufacturing output rose a solid 0.8 percent, helped by a 4.8 percent jump in the output of motor vehicles and parts. Capacity utilization rose 0.3 points to 78.8 percent.
The Energy Information Administration is due to release its weekly petroleum status report for the week ended April 11th at 10:30 am ET.
Crude Oil inventories rose by 4 million barrels to 384.1 million barrels in the week ended April 4th, remaining in the upper half of the average range, Distillate stockpiles edged up by 0.2 million barrels but were near the lower limit of the average range. Meanwhile, Gasoline inventories fell by 5.2 million barrels and were well below the lower limit of the average range.
Refinery capacity utilization averaged 86.7 percent over the four weeks ended April 4th compared to 86.3 percent over the four weeks ended March 28th.
Federal Reserve Chair Janet Yellen will speak to the Economic Club of New York at 12:15 pm ET. Dallas Federal Reserve Bank President Richard Fisher is also scheduled to speak on the U.S. and regional economic outlook in Austin, Texas at 1:25 pm ET.
At 2 pm ET, the Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Fed districts. The report is usually released two weeks before the FOMC meetings. |
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| | Stocks in Focus | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | |
Intel reported first quarter earnings of 38 cents per share on revenues of $12.76 billion, up 1.4 percent year-over-year. The earnings were ahead of estimates, while the revenues were below expectations. The company also said it expects second quarter revenues of $13 billion, plus or minus $500 million, compared to the $12.96 billion consensus estimate.
Bank of America reversed to a loss in its Q1, although its revenues exceeded expectations.
Yahoo reported first quarter non-GAAP earnings of 38 cents per share on revenues, excluding traffic acquisition costs, of $1.09 billion, up 1 percent. The results were ahead of expectations.
Linear Technology reported third quarter earnings of 48 cents per share on revenues of $348 million. The earnings were in line, while the revenues were shy of estimates. The company said it expects 2-6 percent sequential revenue growth for its fourth quarter.
St. Jude Medical's first quarter earnings beat estimates and its revenues were in line. The company guided second quarter in line with estimates and raised its full year guidance.
ADTRAN reported first quarter non-GAAP earnings of 21 cents per share on sales of $147.004 million. The earnings exceeded estimates, while the revenues were below estimates.
CSX reported first quarter earnings of 40 cents per share on revenues of $3 billion, up 2 percent. The results exceeded estimates. The company also said it continues to expect modest full year earnings growth.
Boston Scientific announced that it has received approval from the FDA for its latest generation of defibrillators and heart failure devices designed to advance patient care.
American Express , Capital One , Coldwater Creek , Google , IBM , Noble Corp. , Sallie Mae , SanDisk , Steel Dynamics and United Rentals are among the companies due to release their quarterly results after the close of trading.
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| | European Market | | European stocks opened notably higher after yesterday's weakness, as traders digest some key domestic and overseas earnings along with some economic data.
In corporate news, Credit Suisse reported a decline in its first quarter profits, which came in below the estimates by most analysts. Chip equipment makers ASML lowered its guidance for the first half despite reporting better than expected first quarter results, with the company blaming the predicament on soft second quarter sales.
Agri-inputs company Syngenta reported higher first quarter sales and also affirmed its full year sales expectations. French dairy company Danone reported a decline in its first quarter sales, although like-for-like sales climbed 2.2 percent. The company maintained its guidance for 2014. U.K. department store Tesco reported a 6 percent decline in its full year profits, while Reckitt Benckiser reported higher first quarter sales.
On the economic front, the U.K. Office for National Statistics reported that claimant count in the U.K. declined 30,400 in March, roughly in line with estimates. The jobless rate calculated based on the ILO standards came in at 6.9 percent over the three months ended February compared to expectations of 7.1 percent. |
| | Asian Markets | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | Most Asian markets advanced, led by the positive close on Wall Street overnight, although the Indian and Malaysian markets moved to the downside and South Korean stocks ended little changed. Soft GDP data released by China triggered some buying on the rationale that stimulus may be forthcoming.
The Japanese market advanced strongly, as the yen remained weak, with the Nikkei 225 average opening higher and advancing steadily throughout the session. The index ended up 420.87 points or 3.01 percent at 14,418. The market witnessed broad based strength.
After moving higher in morning trading, Australia's All Ordinaries remained above the unchanged line for the rest of the session before closing up 32.30 points or 0.60 percent at 5,413. Most sectors advanced, led by healthcare and energy stocks, although utility stocks did see some weakness.
Hong Kong's Hang Seng Index closed 24.75 points or 0.11 percent higher at 22,696, and China's Shanghai Composite Index ended at 2,105, up 3.52 points or 0.17 percent.
On the economic front, the Chinese National Bureau of Statistics released a slew of data that reinforced expectations that growth is slowing in the world's second largest economy. China's GDP rose 7.4 percent year-over-year in the first quarter, higher than the 7.3 percent growth estimated by economists but slower than fourth quarter's 7.7 percent growth. The growth was the slowest in about 2 years.
Industrial production rose at a less than expected pace of 8.8 percent in March, and fixed asset investment also showed a slower than expected increase of 17.6 percent in the first quarter. However, retail sales grew 12.2 percent, ahead of expectations.
A report released by Westpac and the Melbourne Institute showed that the leading economic indicators index for Australia was nearly unchanged in March. The index eased 0.1 percent to 98.41 in March. |
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| | Currency and Commodities Markets | | Crude Oil futures are climbing $0.93 to $104.68 a barrel after sliding $0.30 to $103.75 a barrel on Tuesday. An ounce of Gold is currently fetching $1,300.90, up $0.60 from the previous session's close of $1,300.30. On Tuesday, Gold tumbled $27.20.
Among currencies, the U.S. dollar is trading at 102.26 yen compared to the 101.92 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.3833 compared to yesterday's $1.3815.
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