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S&P Fails to Extend Winning Streak, Biotech and Transports Rally


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

US stocks failed to hit a three-day winning streak, though biotech and transports showed renewed momentum.

The NASDAQ Biotechnology ETF (IBB), which underperformed significantly in yesterday's rally, bounced 0.9% today.  

Transports rallied after FedEx (FDX) said it was buying Dutch Delivery company TNT Express for $4.8 billion. The acquisition is expected to help FedEx become more competitive in Europe. Shares of FedEx rose 2.7% on the news.

The bullish action in FedEx helped push the Dow Jones Transportation Average (DJT) up 0.5%.

The S&P 500 was up early in the day, but dropped towards the close to finish at 2076.30, down 0.2%.

Oil futures rose sharply after the Energy Information Administration (EIA) report raised its forecasts for US and global demand growth. It also expects lower production in the US.

Global markets were also strong today.

In Europe's first day of trading after the Easter holiday, Germany's DAX, France's CAC, and the UK's FTSE 100 all rose more than 1%. The euro rose after Greece pledged to make its 450 million euro payment to the IMF due on April 9, encouraging traders. European economic data was also solid today.

In Asia, China's Shanghai Composite rose 2.5% as its stimulus-driven momentum resumed following the holiday.

The Reserve Bank of Australia kept its main rate at 2.25%. Some market observers were expecting a cut and the Australian dollar rose sharply against the yen, euro, and US dollar.

Yesterday afternoon, NY Fed President William Dudley said the Fed's path of rate hikes will likely be shallow once the Fed starts moving, and that recent economic weakness likely won't persist. He also emphasized that rates will remain low on an absolute basis once the Fed gets moving.

Twitter (TWTR) jumped 4% on rumors that the company is attempting to fight off a takeover bid.

Warren Buffett invested an additional $560 million in automotive company Axalta (AXTA), sending the stock up 9.8%.

Smartphone makers HTC, and Samsung are both up following improvements in quarterly profits. Both companies had been posting losses from intense competition from Apple (AAPL), and new Chinese competitors such as Huawei. Stronger product lines are expected to help boost sales and profits at both companies.

Tomorrow's Financial Outlook

In Europe, economic data  announcements will include German Factory Orders and Construction PMI data will be announced, along with the Swiss Consumer Price Index.

In the US, MBA Mortgage Applications, Fed meeting minutes, and crude oil inventories will be released.

Earning seasons will begin with Alcoa's (AA) earnings announcement after the close. Traders will be eager to see Alcoa's global aluminum demand forecast.

Retailers Bed Bath & Beyond (BBBY), Pier 1 Imports (PIR), and Family Dollar (FDO) also report earnings tomorrow.

Twitter: @T3Live
No positions in stocks mentioned.
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