S&P 500 Makes a New High, Jobless Claims Revert to the Mean
Today's financial recap and tomorrow's financial outlook.
Microsoft (NASDAQ:MSFT) took a 5% hit following atrocious first quarter PC sales. The stock was downgraded by Goldman Sachs, Nomura, and BGC Partners. Yesterday, IDC and Gartner reported a 14% and 11.5% annual drop in US PC sales. Windows 8 was a notable poor performer.
Nvidia (NASDAQ:NVDA) increased its stock buyback plan by $750 million to $1 billion. The company will buy back $100 million in stock this quarter. The $1 billion in stock buybacks equates to about 9.5% of the company's total outstanding stock. Earlier in the day, Nvidia's CEO noted that business activity in the first half of the year had been muted, sending the stock 4% lower, so the buyback was likely a way to help save the stock price.
The Treasury reopened $13 billion of 30-year bonds at a yield of 2.998% with demand on the weaker side at 2.49 bid-to-cover vs. the 2.57 long-run average, though direct bidders showed increased participation. This month's auction was 25 basis points richer than last month's.
Tomorrow's Financial Outlook
Earnings season picks up tomorrow with Wells Fargo (NYSE:WFC) and JPMorgan (NYSE:JPM) in the pre-market, though the highlight of the day will be March retail sales. Economists are expecting retail sales to slow to a flat pace from the month prior, citing slowdown in wage growth, a poor payroll report last Friday, and cheaper fuel prices. In the first two months of the year, retail sales grew at monthly rates of 0.2% and 1.1%, partly due to higher fuel prices and continued spending from consumers. The other economic reports include the Producer Price Index and the first estimate of April University of Michigan's Consumer Confidence Index.
Globally, the only report on the calendar is eurozone industrial production. In February, industrial production is expected to grow at 0.2% month-to-month, which is down 2.5% from the year prior.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter