Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Investors Holding Back Before Tomorrow's Economic Data


Today's financial recap and tomorrow's financial outlook.

It was a slow day for US markets as investors waited on making any big changes before tomorrow's advance estimate of US first-quarter GDP and the conclusion of the FOMC's monetary policy meeting. Tensions continued in Ukraine as the defense spokesman for the US said the Pentagon was thinking about increasing its military exercises in the Baltics.

The S&P 500 (INDEXSP:.INX) opened the day up a few points and, after a quick plunge in the opening minutes, finished near its highs of the day. Japanese markets were closed last night. Financials, materials, and tech stocks were the best performers today, while utilities lagged. Bank of America (NYSE:BAC) regained almost 2% in today's session after it lost more than 6% yesterday following its restatement of its capital ratios and suspension of its dividend and buyback program. Its refiled plan with the Federal Reserve would likely push for the dividend increase but abandon its buyback program.

Apple (NASDAQ:AAPL) sold $12 billion of debt in a seven-part offering. The order book for the deal was said to be in excess of $40 billion. The new debt will be used to fund the company's $30 billion expansion in its stock buyback plan and 8% increase in its quarterly dividend.

German engineering and manufacturing company Siemens AG (ETR:SIE) announced that it would make a bid for Alstom SA's (EPA:ALO) assets if it was given the proper time to perform due diligence on the company's books and management. General Electric (NYSE:GE) has already submitted a binding offer over the weekend, which Alstom prefers at present, but the French government has urged the company to entertain both offers. It was also reported that Siemens was exploring the purchase of Rolls-Royce's energy assets.

Twitter (NYSE:TWTR) reported earnings after the close, beating on EPS, revenues, and raising guidance for the full year and coming quarter. However, the subscriber growth did not beat analyst expectations strongly enough and the stock sold off in excess of 8% in extended trading.

Tomorrow's Financial Outlook

There are three significant events tomorrow that will drive what is likely to be a volatile day: the advance estimate of first-quarter US GDP, the ADP private payrolls report, and the policy statement from the FOMC. US GDP is expected to rise at a quarterly annualized rate of 1.2% in the first quarter, down from its 2.6% rate in the quarter prior. For April, private payrolls are expected to rise 210,000 after gaining 191,000 last month. And lastly, the Fed is expected to further reduce its monthly asset purchases by $10 billion to $45 billion and leave the language of its statement unchanged.

The regional Chicago purchasing manager index is also scheduled to be reported.

It will be equally busy in the rest of the world. Preliminary March Japanese industrial production is scheduled to be reported in addition to the advance manufacturing survey for April. Germany's retail sales report for March and employment change for April is also scheduled to be reported. Finally, and most importantly, the April eurozone consumer price index will be reported at 4:00 a.m. EDT. Today's German HICP inflation only rose 1.1% year-on-year, below the 1.3% expectations, which foreshadows a broader report that's below expectations. Eurozone CPI is expected to rise to a year-on-year rate of 0.8% from 0.5% last month.

Fifty-four major US companies are scheduled to report earnings tomorrow. Notable reports include Hess (NYSE:HES), International Paper (NYSE:IP), Yelp (NYSE:YELP), Tesoro (NYSE:TSO), Western Digital (NASDAQ:WDC), and MetLife (NYSE:MET).

Twitter: @Minyanville

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.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

Featured Videos