U.S. equity futures (/ES) are trading relatively flat after a modest rally on Wednesday and ahead of the release of several economic data points. Yesterday’s horrible GDP number was brushed aside as investors blamed the weather for the dismal economic growth number. Investors will be pouring over a large number of earnings reports, but they will also be watching the Challenger Job Cuts, weekly jobless claims data, personal income and spending data, ISM manufacturing data, and reports on construction spending and natural gas inventories. Stocks are once again near all-time highs led by the Dow Industrials (DIA, $DJI), which settled at a new record level. The S&P 500 Index (SPX) settled above its recent resistance price of $1880 and is about $10 off its all-time high. Option volatility remains at low levels and the CBOE Volatility Index (VIX) is currently at $13.40. We could see a near-term run up to $1900 for the S&P 500 but there are still plenty of headwinds at these frothy levels.
Treasuries are a little lower this morning but rallied yesterday after the FOMC rate decision. The Fed reduced its asset purchases by another $10B but demand for Bonds increased despite the news. The 10-year yield fell to 2.65% but many expect rates to rise into the end of the year. Eventually we may see some disconnect from equities or a fall in Treasury prices but at this point they are rising in tandem with each other. In other financial markets, trading in both Asia and Europe was muted as most exchanges were closed to observe the May Day holiday. Although Shanghai’s market wasn’t trading, China released official data showing manufacturing activity ticked up in April. Focus will turn to the jobs report, which will be released tomorrow morning and is expected to show growth above 200,000 additional jobs last month.
Stock Stories:
Yelp Inc. (YELP) – Reviewed – The online review site posted better than expected EPS and Revenue numbers after the close yesterday. The company also gave positive guidance for FY14 but still lost money in the quarter. The shares are up 9% ahead of the opening bell after initially falling after the report.
Major Economic Reports:
7:30 am CT– Weekly Jobless Claims
7:30 am CT –Personal Income and Outlays
7:30 am CT – Fed’s Yellen Speaks
9:00 am CT– PMI Mfg. Index
9:00 am CT– ISM Mfg. Index
9:00 am CT– Construction Spending
9:30 am CT– Natural Gas Inventories
Notable Earnings:
Thursday:
Before Market: AVP, BEAM, BZH, CI, CLX, DPZ, GG, K, LINE, MPC, MWW, MYL, TEVA, XOM
After Market: AKAM, AMT, ANR, EXPE, FLR, KRFT, MTW, OPEN, VRTX, WYNN
Friday – 5/2:
Before Market: CVX, CTB, CVS, EL, KCG, MMC, NWL, USM
After Market: None |
发表于 2014-5-1 08:20
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