In another wild day for the US equity markets, the indices moved from big gains to fairly big losses before closing in the green again in anticipation f better earnings ahead especially given the battering techland names have taken and took intra-day. After all was said and done our markets closed just off the day’s highs. The S&P closed up 12 points or 68 bips, the Dow was up 89 or 55 basis points and the Nazz tacked on 11 points to end the day higher by 29 bips.
Chatter that the Ukraine government had sent armed forces to Eastern Ukraine to take back control of an airport there that was under pro-Russian rebels turned out to be mainly chatter.
This is an insane time in our markets and what I am doing is keeping trades tight while continuing to add gingerly to our core holdings especially Chinese stocks that have got beaten to multi-year lows in some cases.
As I write this closing summary, Asian stocks are trading mixed with the Hang Seng down 17 points, the Shanghai Comp is up 4, the Sensex is down 57 basis points, KOSPI is lower by 0.24%, Taiwan is higher by 0.08% and finally the Nikkei is up 421 points or 3.01% on the day.
So, why are Asian markets trading mixed? Chinese GDP data released today here in Asia showed that Chinese economic growth slowed to an 18 months low for Q1 but still came in a bit ahead of estimates. The economy grew at an annual rate of 7.4% in the first quarter, which was better than the 7.3% the pundits were expecting. There were some bright spots in the month of March with retails sales for the month coming in higher than expected.
Be careful, we got Janet Yelling Yellen and Fishy Fisher up and about today. Both are loose cannons although I will cut Yelling a bit of slack for this one last time.
On the trade front, it looks like our YHOO trade will give us another stellar return overnight. Check it out on the site.
Wednesday’s Economic Calendar:
7:00 MBA Mortgage Applications
8:30 Housing Starts
9:15 Industrial Production
10:00 Atlanta Fed’s Business Inflation Expectations
10:30 EIA Petroleum Inventories
12:15 PM Janet Yellen speech
1:25 PM Fed’s Fisher: Economic Outlook
2:00 PM Beige Book: Fed
Earnings Before Wednesday’s Open:
ABT, ASML, BAC, CS, FRC, GWW, HBAN, PNC, STJ, USB
Earnings After Wednesday’s Close:
AF, ALB, AXP, BGS, BMI, CCK, COF, EFII, EPB, EWBC, GOOG, HBHC, IBM, KMI, KMP, KSU, NE, NSR, PBCT, PLXS, RLI, SLM, SNDK, STLD, TPLM, URI
News of Note After the Closing Bell on Tuesday:
YHOO & INTC both reported numbers that were good enough to lead the shares higher in pm trade.
INTC guided Q2 revenues higher by $100 million at the midpoint and also saw GM gains on a YoY basis. Full year guidance is maintained at status quo., however GMs for the year have been raised by 100 basis points. INTC was up 3% in pm trade.
YHOO revenues were down 14% YoY and NI was also down 11%. YHOO is also guiding Q2 higher to $1.14 billion versus expectations of $1.08 billion. Search was up 9% ex-TAC while other revenue was down 11%. Ads sold were up 7%, price/ad was off 5%, search paid clicks up 6%, and price /click rose 8%. ABABA had Q4 revenues f $3.06 billion, up 66% YoY and net income of $1.35 billion up 110% YoY. Wow! Is all I can say there.
MSFT unveils a new cloud data service, analytics platform and new database service that Satya Nadella is calling “big data in a box”. CTSH and INFY are among the Soft One’s partners.
Japanese industrial output fell 2.3% on month in February, as expected, after rising 3.8% in January.
On year, production +7% vs. +10.3%.
The Nikkei is +3% and the USD-JPY is +0.3% at 102.26
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Since inception (Feb 1, 2013) our model is up 145.57% versus a rise of 26.90% in the Nasdaq and a rise of 25.89% in the Nasdaq 100 (which is our benchmark) for the same period.
As always I hope you have enjoyed reading this summary as much as I have enjoyed writing it for you.
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