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.

Financials Continue to Struggle, Dragging Down the Major Indices


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

US equities were broadly lower in today's session as small caps and financial stocks took the brunt of the damage. Barclays (NYSE:BCS) earnings disappointed this morning, and its profits were hurt by a drop in revenue from fixed-income, currency, and commodity trading. Revenues were down 41% from the same quarter a year ago, which caused profits at the bank to get cut in half. Energy stocks was the only sector in the S&P 500 (INDEXSP:.INX) to finish positive thanks to strong earnings from EOG Resources (NYSE:EOG) in the morning and Anadarko Petroleum (NYSE:APC) last night.

Twitter (NYSE:TWTR) fell 17.96% today after its major insider lockup expiration. The stock was for sale all day on record volume -- 11 times the monthly average. This occurred even though before the lockup expiration some insiders said that they wouldn't sell. However, social media peer Facebook (NASDAQ:FB) bottomed around its lockup period in 2012.

March's trade deficit narrowed to $40.4 billion from $42.3 billion in the month prior. This was slightly worse than the $40 billion expected. The government's approximation for the month's trade balance was -$38.4 billion. As a result, the month's figure was poor enough to cause most Wall Street economists to revise down their first-quarter GDP tracking to reflect a contraction.

Tomorrow's Financial Outlook

The most significant report tomorrow is March's consumer credit growth, as reported by the Fed. Credit is expected to grow by $16.1 billion in the month after increasing $16.48 billion in the month prior. Preliminary nonfarm business productivity and unit labor costs for the first quarter will also be released. The Treasury will be selling $24 billion of new 10-year notes at 1:00 p.m. EDT. The rate paid on these notes will dictate a number of government-backed interest rates, such as those for student loans. Janet Yellen is scheduled to testify to the Joint Economic Committee.

The Bank of Japan will release the minutes of its April meeting tonight, and is expected to draw significant investor interest. Also scheduled to be released overnight is New Zealand's employment change, Australian retail sales, China's final services PMI, and German factory orders.

Fifty-six major US companies are scheduled to report tomorrow. Of these reports, Sotheby's (NYSE:BID), Molson Coors (NYSE:TAP), Chesapeake Energy (NYSE:CHK), Devon Energy (NYSE:DVN), 21st Century Fox (NASDAQ:FOXA), CF Industries (NYSE:CF), Green Mountain Coffee Roasters (NASDAQ:GMCR), Tesla Motors (NASDAQ:TSLA), Zillow (NASDAQ:Z), AOL (NYSE:AOL), and Prudential Financial (NYSE:PRU) are of note.

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