Stocks Shake Off Lousy Retail Sales Data on Strong Earnings
Today's financial recap and tomorrow's financial outlook.
Retail sale rose 0.9% in March, the first increase since November. However, it missed the 1.1% consensus, sending futures down in pre-market trading.
The S&P 500 was down this morning. However. towards the end of the day it was able to inch higher to finish at 2095.84, up 0.2%.
The Producer Price Index numbers were in-line with expectations.
Greece was back in the news as the deadline for their IMF loan payments is coming up on May 1. Greek Prime Minister Alexis Tsipras stated that Greece may need help from the European Union in order to service its debt. Meanwhile, Morgan Stanley issued a report estimating that there's a 45% chance that Greece will be leaving the Eurozone.
Crude oil rose today due to ongoing tensions in Yemen, as well as on ongoing chatter of a possible drop in US shale production. As a result energy was the best performing sector.
Despite concerns that earnings would be weak due to the strong dollar and recent economic trends, this morning's major announcements proved otherwise:
JPMorgan Chase (JPM) came out on top, beating expectations on EPS by 5 cents, while revenues were up 4.8% year-over-year. Shares finished up 1.6% today.
Wells Fargo (WFC) also beat earnings expectations. However, it missed on revenues, causing the stock to dip slightly today.
Johnson & Johnson (JNJ) also exceeded expectations and finished slightly higher today.
58.com (WUBA) shares rallied 33.5% today on an announcement that the company has agreed to merge with competitor Ganji.com. The combined company will be worth an estimated $10 billion.
Avon Products (AVP) soared 14.2% after the Wall Street Journal reported that it would be exploring strategic alternatives. According to Thinkorswim, Avon call options traded at 47 times average volume, implying that traders expect a deal is forthcoming.
Wednesday's Financial Outlook
Tomorrow morning, Empire Manufacturing, Industrial Production, Capacity Utilization, NAHB Housing Market Index, and Crude Oil Inventories will be announced.
In the afternoon the Fed's Beige Book for April will be released.
In global economic news, the Bank of Canada will be releasing its rate decision, Germany will be announcing its CPI, and Australia will be releasing consumer inflation expectations and its employment report.
We have some major earnings reports to look forward to tomorrow.
Before the open we have Bank of America (BAC), Charles Schwab (SCHW), Delta Airlines (DAL), PNC (PNC), Progressive (PGR) and U.S. Bancorp (USB). After the close we'll be hearing from Kinder Morgan (KMI), Netflix (NFLX), and SanDisk (SNDK).
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