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Negligible Changes to FOMC Statement Leads to Little Volatility
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The avalanche of economic data ruled today's trading. The April ADP private payrolls report showed a net gain of 220,000 jobs, better than the 210,000 expected, and the prior month's payrolls were revised higher to 209,000 from the initial 191,000 report. The advance estimate of first-quarter GDP rose at a quarterly annualized rate of 0.1%, worse than the 1.2% economist expectation. The drop was attributed to a substantial drop in exports, business fixed investment, and a small decline in inventories from the prior quarter. However, the poor consumption across the board was balanced out by increases in utilities and health care spending that hasn't been seen in more than two decades. The increases were very likely from weather-related electric and heating costs and the implementation of the Affordable Care Act.

The Fed cut its monthly asset purchases by $10 billion to $45 billion, as had been widely expected. In its post-meeting statement, it noted that economic activity had picked up recently after slowing sharply in recent months due to adverse winter weather. It also noted an increase in household consumption, but a drop in business fixed investment. Lastly, it continued to see reducing its monthly asset purchases further in the coming months if the economic outlook remained relatively unchanged.

The S&P 500 (INDEXSP:.INX) bounced around unchanged for much of the day, but it rallied slowly and steadily to close near its highs of the day, up 0.30% .Energy stocks lagged as crude oil declined by 1.16%, breaking a multimonth trendline of support. Department of Energy crude oil inventories rose by 1.7 million barrels after last night's API data showed a build of 3 million barrels. The regional Chicago purchasing managers index rose to 63.0 from 55.6 last month, one of the highest single-month readings in the past decade.

Tomorrow's Financial Outlook

Tomorrow will continue to be busy on the economic data front: weekly jobless claims, March personal income and spending, the April national ISM manufacturing index, and auto sales. Personal income is expected to rise 0.4% month-on-month, while spending is expected to increase 0.6%. The ISM manufacturing index is expected to rise to 54.2 from 53.7 last month. Auto sales are expected to show a similar amount of total sales of a 16.2 million annual rate after 16.33 million last month.

Tonight the official Chinese manufacturing PMI will be released. The Markit preliminary gauge of small manufacturers released a week ago showed slight growth to 48.3 from 48.0 in March, its fourth straight month of contraction. Economists are expecting the official gauge to show a similar increase to 50.5 from 50.3 in the month prior. The UK manufacturing gauge for April is also scheduled to be released.

Seventy-seven major US companies are scheduled to report earnings tomorrow, making it the busiest day of the week. Notable reports include ExxonMobil (NYSE:XOM), ConocoPhillips (NYSE:COP), Beazer Homes (NYSE:BZH), MasterCard (NYSE:MA), T-Mobile (NYSE:TMUS), Kellogg (NYSE:K), Kraft Foods (NASDAQ:KRFT), LinkedIn (NYSE:LNKD), and Viacom (NASDAQ:VIA).


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.
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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.

Negligible Changes to FOMC Statement Leads to Little Volatility
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The avalanche of economic data ruled today's trading. The April ADP private payrolls report showed a net gain of 220,000 jobs, better than the 210,000 expected, and the prior month's payrolls were revised higher to 209,000 from the initial 191,000 report. The advance estimate of first-quarter GDP rose at a quarterly annualized rate of 0.1%, worse than the 1.2% economist expectation. The drop was attributed to a substantial drop in exports, business fixed investment, and a small decline in inventories from the prior quarter. However, the poor consumption across the board was balanced out by increases in utilities and health care spending that hasn't been seen in more than two decades. The increases were very likely from weather-related electric and heating costs and the implementation of the Affordable Care Act.

The Fed cut its monthly asset purchases by $10 billion to $45 billion, as had been widely expected. In its post-meeting statement, it noted that economic activity had picked up recently after slowing sharply in recent months due to adverse winter weather. It also noted an increase in household consumption, but a drop in business fixed investment. Lastly, it continued to see reducing its monthly asset purchases further in the coming months if the economic outlook remained relatively unchanged.

The S&P 500 (INDEXSP:.INX) bounced around unchanged for much of the day, but it rallied slowly and steadily to close near its highs of the day, up 0.30% .Energy stocks lagged as crude oil declined by 1.16%, breaking a multimonth trendline of support. Department of Energy crude oil inventories rose by 1.7 million barrels after last night's API data showed a build of 3 million barrels. The regional Chicago purchasing managers index rose to 63.0 from 55.6 last month, one of the highest single-month readings in the past decade.

Tomorrow's Financial Outlook

Tomorrow will continue to be busy on the economic data front: weekly jobless claims, March personal income and spending, the April national ISM manufacturing index, and auto sales. Personal income is expected to rise 0.4% month-on-month, while spending is expected to increase 0.6%. The ISM manufacturing index is expected to rise to 54.2 from 53.7 last month. Auto sales are expected to show a similar amount of total sales of a 16.2 million annual rate after 16.33 million last month.

Tonight the official Chinese manufacturing PMI will be released. The Markit preliminary gauge of small manufacturers released a week ago showed slight growth to 48.3 from 48.0 in March, its fourth straight month of contraction. Economists are expecting the official gauge to show a similar increase to 50.5 from 50.3 in the month prior. The UK manufacturing gauge for April is also scheduled to be released.

Seventy-seven major US companies are scheduled to report earnings tomorrow, making it the busiest day of the week. Notable reports include ExxonMobil (NYSE:XOM), ConocoPhillips (NYSE:COP), Beazer Homes (NYSE:BZH), MasterCard (NYSE:MA), T-Mobile (NYSE:TMUS), Kellogg (NYSE:K), Kraft Foods (NASDAQ:KRFT), LinkedIn (NYSE:LNKD), and Viacom (NASDAQ:VIA).


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.

More From Minyanville Staff
Daily Recap
Negligible Changes to FOMC Statement Leads to Little Volatility
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The avalanche of economic data ruled today's trading. The April ADP private payrolls report showed a net gain of 220,000 jobs, better than the 210,000 expected, and the prior month's payrolls were revised higher to 209,000 from the initial 191,000 report. The advance estimate of first-quarter GDP rose at a quarterly annualized rate of 0.1%, worse than the 1.2% economist expectation. The drop was attributed to a substantial drop in exports, business fixed investment, and a small decline in inventories from the prior quarter. However, the poor consumption across the board was balanced out by increases in utilities and health care spending that hasn't been seen in more than two decades. The increases were very likely from weather-related electric and heating costs and the implementation of the Affordable Care Act.

The Fed cut its monthly asset purchases by $10 billion to $45 billion, as had been widely expected. In its post-meeting statement, it noted that economic activity had picked up recently after slowing sharply in recent months due to adverse winter weather. It also noted an increase in household consumption, but a drop in business fixed investment. Lastly, it continued to see reducing its monthly asset purchases further in the coming months if the economic outlook remained relatively unchanged.

The S&P 500 (INDEXSP:.INX) bounced around unchanged for much of the day, but it rallied slowly and steadily to close near its highs of the day, up 0.30% .Energy stocks lagged as crude oil declined by 1.16%, breaking a multimonth trendline of support. Department of Energy crude oil inventories rose by 1.7 million barrels after last night's API data showed a build of 3 million barrels. The regional Chicago purchasing managers index rose to 63.0 from 55.6 last month, one of the highest single-month readings in the past decade.

Tomorrow's Financial Outlook

Tomorrow will continue to be busy on the economic data front: weekly jobless claims, March personal income and spending, the April national ISM manufacturing index, and auto sales. Personal income is expected to rise 0.4% month-on-month, while spending is expected to increase 0.6%. The ISM manufacturing index is expected to rise to 54.2 from 53.7 last month. Auto sales are expected to show a similar amount of total sales of a 16.2 million annual rate after 16.33 million last month.

Tonight the official Chinese manufacturing PMI will be released. The Markit preliminary gauge of small manufacturers released a week ago showed slight growth to 48.3 from 48.0 in March, its fourth straight month of contraction. Economists are expecting the official gauge to show a similar increase to 50.5 from 50.3 in the month prior. The UK manufacturing gauge for April is also scheduled to be released.

Seventy-seven major US companies are scheduled to report earnings tomorrow, making it the busiest day of the week. Notable reports include ExxonMobil (NYSE:XOM), ConocoPhillips (NYSE:COP), Beazer Homes (NYSE:BZH), MasterCard (NYSE:MA), T-Mobile (NYSE:TMUS), Kellogg (NYSE:K), Kraft Foods (NASDAQ:KRFT), LinkedIn (NYSE:LNKD), and Viacom (NASDAQ:VIA).


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.

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