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​High-Beta Stocks Lead the Way After S&P's Record High on Friday​
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The result of Ukraine's presidential election this past weekend, which saw billionaire Petro Poroshenko receive the overwhelming majority, caused some easing of risk premiums in Europe. Additionally, the results of the EU Parliament showed some gains from the noncore parties, but not large enough to disturb the consensus political view. European peripheral sovereign bonds all experienced substantial gains yesterday. The German DAX (INDEXDB:DAX) broke out of a trading range from the past five months yesterday and continued further in today's session.

The push by the S&P 500 (INDEXSP:.INX) to break to a new record high last Friday carried over into today's session. The benchmark index was led by gains in financials and utilities. Citigroup's (NYSE:C) CFO commented at an investor conference in New York today that he expected the firm's trading revenue to be 20% to 25% lower in the second quarter, echoing similar comments from JPMorgan earlier this month. The higher-beta small-cap Russell 2000 (INDEXRUSSELL:RUT) and tech stocks both outperformed, while the Dow Jones Industrials (INDEXDJX:.DJI) and Transports (INDEXDJX:DJT) both underperformed.

Utility stocks gained in large part due to the results of PJM Interconnection's (the largest power grid in the US) annual auction that was released late Friday evening. The auction showed that payments to electricity producers would more than double to $120 a megawatt per day from $59.37 in the previous 12-month period as the result of rising federal energy regulation. Analyst estimates were significantly below the result.

Durable goods orders for the month of April exceeded economist estimates. Orders rose 0.8% from the prior month, better than the -0.7% estimate. In addition, the prior month's orders were revised up to +3.6% from +2.6%. A significant contributor to the topline gain was from submarine defense orders. The more closely followed figure, which excludes large transportation orders, only rose 0.1% versus no change expected. The Conference Board's May index of consumer confidence rose to 83.0 from 81.7 in the month prior, which was in line with expectations.

Tomorrow's Financial Outlook

There are no major economic report scheduled tomorrow. The Mortgage Bankers Association (MBA) will release its weekly report on mortgage applications for the week ending May 24. The Treasury is scheduled to sell four-week bills, two-year floating-rate notes, and five-year notes in various sizes.

Due out overnight is China's year-to-date industrial profits for the month of April. The biggest catalyst for risk assets will be Germany's May unemployment change.

Only two major US companies are scheduled to report earnings tomorrow: Toll Brothers (NYSE:TOL) and Palo Alto Networks (NYSE:PANW).


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.

​High-Beta Stocks Lead the Way After S&P's Record High on Friday​
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The result of Ukraine's presidential election this past weekend, which saw billionaire Petro Poroshenko receive the overwhelming majority, caused some easing of risk premiums in Europe. Additionally, the results of the EU Parliament showed some gains from the noncore parties, but not large enough to disturb the consensus political view. European peripheral sovereign bonds all experienced substantial gains yesterday. The German DAX (INDEXDB:DAX) broke out of a trading range from the past five months yesterday and continued further in today's session.

The push by the S&P 500 (INDEXSP:.INX) to break to a new record high last Friday carried over into today's session. The benchmark index was led by gains in financials and utilities. Citigroup's (NYSE:C) CFO commented at an investor conference in New York today that he expected the firm's trading revenue to be 20% to 25% lower in the second quarter, echoing similar comments from JPMorgan earlier this month. The higher-beta small-cap Russell 2000 (INDEXRUSSELL:RUT) and tech stocks both outperformed, while the Dow Jones Industrials (INDEXDJX:.DJI) and Transports (INDEXDJX:DJT) both underperformed.

Utility stocks gained in large part due to the results of PJM Interconnection's (the largest power grid in the US) annual auction that was released late Friday evening. The auction showed that payments to electricity producers would more than double to $120 a megawatt per day from $59.37 in the previous 12-month period as the result of rising federal energy regulation. Analyst estimates were significantly below the result.

Durable goods orders for the month of April exceeded economist estimates. Orders rose 0.8% from the prior month, better than the -0.7% estimate. In addition, the prior month's orders were revised up to +3.6% from +2.6%. A significant contributor to the topline gain was from submarine defense orders. The more closely followed figure, which excludes large transportation orders, only rose 0.1% versus no change expected. The Conference Board's May index of consumer confidence rose to 83.0 from 81.7 in the month prior, which was in line with expectations.

Tomorrow's Financial Outlook

There are no major economic report scheduled tomorrow. The Mortgage Bankers Association (MBA) will release its weekly report on mortgage applications for the week ending May 24. The Treasury is scheduled to sell four-week bills, two-year floating-rate notes, and five-year notes in various sizes.

Due out overnight is China's year-to-date industrial profits for the month of April. The biggest catalyst for risk assets will be Germany's May unemployment change.

Only two major US companies are scheduled to report earnings tomorrow: Toll Brothers (NYSE:TOL) and Palo Alto Networks (NYSE:PANW).


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.

​High-Beta Stocks Lead the Way After S&P's Record High on Friday​
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The result of Ukraine's presidential election this past weekend, which saw billionaire Petro Poroshenko receive the overwhelming majority, caused some easing of risk premiums in Europe. Additionally, the results of the EU Parliament showed some gains from the noncore parties, but not large enough to disturb the consensus political view. European peripheral sovereign bonds all experienced substantial gains yesterday. The German DAX (INDEXDB:DAX) broke out of a trading range from the past five months yesterday and continued further in today's session.

The push by the S&P 500 (INDEXSP:.INX) to break to a new record high last Friday carried over into today's session. The benchmark index was led by gains in financials and utilities. Citigroup's (NYSE:C) CFO commented at an investor conference in New York today that he expected the firm's trading revenue to be 20% to 25% lower in the second quarter, echoing similar comments from JPMorgan earlier this month. The higher-beta small-cap Russell 2000 (INDEXRUSSELL:RUT) and tech stocks both outperformed, while the Dow Jones Industrials (INDEXDJX:.DJI) and Transports (INDEXDJX:DJT) both underperformed.

Utility stocks gained in large part due to the results of PJM Interconnection's (the largest power grid in the US) annual auction that was released late Friday evening. The auction showed that payments to electricity producers would more than double to $120 a megawatt per day from $59.37 in the previous 12-month period as the result of rising federal energy regulation. Analyst estimates were significantly below the result.

Durable goods orders for the month of April exceeded economist estimates. Orders rose 0.8% from the prior month, better than the -0.7% estimate. In addition, the prior month's orders were revised up to +3.6% from +2.6%. A significant contributor to the topline gain was from submarine defense orders. The more closely followed figure, which excludes large transportation orders, only rose 0.1% versus no change expected. The Conference Board's May index of consumer confidence rose to 83.0 from 81.7 in the month prior, which was in line with expectations.

Tomorrow's Financial Outlook

There are no major economic report scheduled tomorrow. The Mortgage Bankers Association (MBA) will release its weekly report on mortgage applications for the week ending May 24. The Treasury is scheduled to sell four-week bills, two-year floating-rate notes, and five-year notes in various sizes.

Due out overnight is China's year-to-date industrial profits for the month of April. The biggest catalyst for risk assets will be Germany's May unemployment change.

Only two major US companies are scheduled to report earnings tomorrow: Toll Brothers (NYSE:TOL) and Palo Alto Networks (NYSE:PANW).


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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