The Dow's Winning Streak Is Over
Today's financial recap and tomorrow's financial outlook.
The slump came despite a surge in shares of former market leader Apple (NASDAQ:AAPL) and a rally in financial shares, though matters weren't helped by some mixed economic data.
Apple's relief rally came after the release of Samsung's (PINK:SSNLF) long-awaited Galaxy S4 smartphone, which was well-received by the media, but not quite strong enough to quality as an iPhone killer.: (See also: Can the Samsung Galaxy S4 Break the BlackBerry-Apple Stranglehold on Business Customers? )
Financials were strong as the Federal Reserve approved the capital plans of the vast majority of financial institutions, many of which subsequently announced substantial dividend increases and share repurchases. However, two major names -- Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) -- were required to resubmit plans. Goldman Sachs did rally, but JPMorgan took a hit today because of a report and hearing charging that the company hid losses from investors and regulators.
In economics, we saw a mixed bag of data today, with the March Empire Manufacturing and February Industrial Production numbers coming in ahead of expectations. On the downside, February Capacity Utilization and March Michigan Consumer Sentiment numbers were below consensus, as was the February CPI.
Overall, today's action looks like a pullback that was long in the making, and certainly nothing disastrous, particularly with the positive action in financials and outperformance of economically sensitive small caps.
Monday's Financial Outlook
On Monday, we will see a number of earnings reports, with the only notable name being TravelCenters of America (NYSEAMEX:TA). The rest are all small caps.
There isn't much on the economic calendar either, the exception being the NAHB Housing Market Index, which will be released at 10:00 a.m. EDT. Recent economic data has been fairly positive, so it's likely that the market will be looking for a strong number.
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