Major U.S. equity indexes finished higher after recovering from earlier losses as the market weighed another round of mixed economic data and corporate earnings results. Technology and Telecom led gains, while Healthcare and Consumer Staples declined. Crude oil is lower and gold is higher.
U.S. home prices rose in February at their fastest rate in almost seven years, an encouraging sign the housing market recovery will help counter the drag on the economy. Today’s release of the S&P Case Shiller index showed single family home prices rose 9.3 percent in February from a year earlier.
Consumer confidence rose in April coming in at 68.1, and beating consensus of 61.7. This unexpected jump showed Americans feel better about the outlook for the economy and their income prospects.
Market Indices/Statistics:
- Dow closed up 21.05 pts/+0.14% to 14839.80; 15 of the 30 Dow stocks closed higher.
- S&P closed up 3.96 pts/+0.25% to 1,597.57; 8 of the 10 S&P 500 sectors closed higher.
- Nasdaq closed up 21.77 pts/+0.66% to 3,328.79
- Technology was the strongest sector (+1.18%), while Healthcare was the weakest (-0.81%).
- The VIX finished down 0.19 to 13.52.
- Oil is down 1.45 to $93.05.
- Nat Gas is down 0.056 to $4.385.
- Gold is up $8.90 to $1,476.30
- Euro vs. Dollar is up 0.0071 to $1.3168.
- Yen vs. Dollar is down 0.33 to $97.42.
Top Headlines:
International Business Machines (IBM, $202.54, +1.7%) raised their quarterly dividend 12%, marking the 18th year in a row the company has increased its dividend. The company also authorized $5 bln increase to its stock repurchase plan.
Apple (AAPL, $442.75, +2.94%) came to market Today with what could turn out to be the largest non-bank bond sale in history, as the U.S. computer giant seeks funding to return capital to restless shareholders. Reports indicate demand may be north of $50 bln.
The U.S. dollar fell to a two-month low on expectations of further supportive actions by U.S. and European central banks. Investors believe the Fed will continue with its bond buying program in response to recent weaker U.S. economic data, while the European Central Bank may cut its benchmark interest rate.
On Wednesday, May 1, executives and guests of Atmos Energy Corporation (NYSE: ATO), will visit the New York Stock Exchange to mark the company’s 25th anniversary of listing. The company’s common stock began trading on the NYSE on October 3, 1988. To mark this occasion, Charles K. Vaughan, Honorary Director, will ring the NYSE Closing Bell.
Today’s Earnings:
Pfizer reports Q1 adj EPS 54c, vs. Est 56c and Q1 revenue $13.5B, vs. Est $14.0B.
Marathon Petroleum reports Q1 EPS $2.17, vs. Est $2.16 and Q1 revenue $23.35B, vs. Est $19.8B.
G&K Services reports Q3 EPS 69c, vs. Est 62c and Q3 revenue $226.6M, vs. Est $229.36M.
Rockwood reports Q1 adj EPS 68c, vs. Est 68c and Q1 revenue $934.6M, vs. Est $908.67M
Earnings After the Bell:
Avalon Bay (AVB) reports Q1 EPS of 0.78c, vs. Est. -0.63
FMC Corp (FMC) reports Q1 EPS of $1.10, vs. Est. $1.08
Fiserv (FISV) reports Q1 EPS of $1.33, vs. Est. $1.34
Western Union (WU) reports Q1 EPS of 0.37c, vs. Est. 0.32c
Coming Wednesday
Economic Reports:
MBA Mortgage Applications (A/O April 26) at 7am, prior 0.2%
April ISM Manufacturing Index at 10am, consensus 50.7, vs. prior 51.3
FOMC rate decision at 2pm, consensus is unchanged at 0.25%
Earnings Wednesday:
ADT Corporation (ADT) Est. 0.42c; Clorox (CLX) Est. $1.05 ; CVS Caremark (CVS) 0.79c ; Devon (DVN) Est. 0.56c ; Humana (HUM) Est. $1.78 ; Merck (MRK) Est. 0.80c ; Time Warner (TWX) Est. 0.75c ; Viacom (VIAB) Est. 0.95c
Have a great evening!
