Cyclical Stocks Continue to Lead
Today's financial recap and tomorrow's financial outlook.
Today was the first day since May 2 that Japanese markets were open. Consistent with the USDJPY rally from 98 to 99.20 following the better-than-expected nonfarm payrolls data, the Japanese Nikkei rose 3.55%.
US stocks continued their upward trajectory today. Utility stocks, the market leaders this year, bounced off a two-day slump but remain below their recent highs. Cyclical stocks such as Fedex (NYSE:FDX) and Cummins (NYSE:CMI) have also experienced multi-figure rallies off their recent lows, signaling a continued rotation out of defensive sectors and into offensive ones. Treasuries were slightly lower on the day, but traded in a tight five-tick range throughout the US session. The $32 billion auction of 3-year notes at 1 p.m. priced at a high yield of 0.354%, consistent with pre-auction levels and dealer expectations.
March consumer credit was released at 3 p.m. in the afternoon, showing a seasonally adjusted gain of $7.966 billion, lower than the $15.6 billion expected. On a non-seasonally-adjusted basis, revolving credit showed its second straight month of declines while non-revolving credit was buoyed by a $3.9 billion increase in federal government credit.
Tomorrow's Financial Outlook
Tomorrow there will be no economic data released with the exception of the weekly MBA mortgage purchase and refinance index. The Treasury will open $24 billion of 10-year notes at 1 p.m.
On the global front, Germany will release March industrial production data and Canada will release housing starts data. German industrial production is expected to rise 0.3% MoM from a 0.7% gain the month prior. Canadian housing starts are expected to grow at a 175,000 annualized rate in April.
US earnings on the calendar include AOL (NYSE:AOL), News Corp (NASDAQ:NWSA), Green Mountain Coffee Roasters (NASDAQ:GMCR), Groupon (NASDAQ:GRPN), and Tesla Motors (NASDAQ:TSLA).
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