The S&P 500 holds at 1335.39, after trading in a 1330.33 to 1336.21 range. In early April, the index stalled several times just shy of 1340, unable to revisit the 2011 high of 1344.03, posted February 18. Because of this, the S&P will need to clear that 1340 mark before there will be scope for further gains, traders say.
S&P 500 торгуется в области 1335.39, у верхней границы дневного диапазона, ограниченного 1330.33 и 1336.21. В начале апреля индекс встречал сопротивление на подходе к 1340, и не смог протестировать пик 2011 года 1344.03, установленный 18 февраля. В этой связи S&P 500 следует преодолеть 1340 прежде чем можно будет говорить о возможности продолжения роста.
The major equity averages have modestly extended the prior session's sharp rally. The effort comes on the back of a big batch of earnings.
Apple (AAPL 352.12, +9.71) and Qualcomm (QCOM 56.85, +1.58) both posted pleasing results for the latest quarter, helping drive the tech sector to a 1% gain.
Financials have even garnered support after they had lagged in the past couple of sessions and even faltered this morning. That sector is up 0.6% amid leadership from Morgan Stanley (MS 26.61, +0.57), BlackRock (BLK 197.78, +4.06), and Dow component Travelers (TRV 60.98, +1.85). However, consumer finance plays Capital One (COF 53.45, +2.92) and American Express (AXP 47.18, +0.18) are up with varied gains while regional banks Fifth Third (FITB 13.12, -0.20), SunTrust (STI 27.26, -0.37), and BB&T (BBT 25.78, -0.81) have struggled. All of them announced earnings that exceeded what Wall Street had expected.
General Electric (GE 19.97, -0.43) also announced upside earnings and threw in a dividend hike. Fellow industrial outfit Honeywell (HON 60.83, +2.09) had stronger-than-expected earnings of its own, but complemented its report with an improved forecast.
Dow component McDonalds (MCD 77.11, -1.29) has handed back all of yesterday's gain, despite strong earnings. Chipotle Mexican Grill (CMG 278.60, -9.50) has also dropped, despite better-than-expected earnings and its addition to the S&P500. However, Yum! Brands (YUM 54.44, +2.89) has spiked to a new 52-week high, even though earnings from the owner of KFC, Pizza Hut, Taco Bell, and Long John Silver's came short of the consensus estimate.
Health care stocks are off of session highs, but they continue to sport a collective gain of 0.7% following a strong response to the latest results from UnitedHealth (UNH 47.83, +3.59) and Boston Scientific (BSX 7.29, +0.21). Amgen (AMGN 53.46, -2.72) has dropped sharply following its latest quarterly report.
Neither Schlumberger (SLB 89.90, +2.01) nor Noble (NE 42.31, -1.12) managed to meet earnings estimates, but Diamond Offshore (DO 77.65, +1.25) posted an upside surprise. The energy sector has managed to muster a modest gain of 0.3%. Oil prices trade with the same gain at $111.75 per barrel.
Holds C$0.9525 ahead of the early IMM close and the unofficial start of the Easter weekend, the C$ softer on the day as risk trades are unwound here and elsewhere. Early lows at C$0.9455 were quickly reversed on the risk unwinds but USD found sellers atop C$0.9500. Further resistance likely in the C$0.9550/80 zone.
The U.S. currency has weakened for three consecutive days, slumping to a 16-month low of $1.4649 to the euro today.
The U.S. currency slumped against all but one of its 16 major peers today as gains in stock markets around the world and signs of improving economic growth spurred demand for higher- yielding assets. The Federal Reserve’s benchmark interest rate of between zero and 0.25 percent makes it profitable to borrow in dollars and invest the money in markets where returns are higher, a strategy known as the carry trade.
The dollar’s move through resistance areas around $1.45 per euro puts the currency on course for a depreciation past $1.51, according to Societe Generale SA’s technical analysts.
The dollar’s next resistance levels are around $1.47 and $1.4830, and a breach of those may propel the greenback to $1.5145, its lowest point in 2009, France’s second-largest bank said in a research note today. Should the currency depreciate below that level, it will begin setting 2 ½-year lows.
Tech stocks are outperforming for the second straight session. Semiconductor stocks were a primary source of strength for the tech sector yesterday, when they collectively climbed more than 3%, but today they are down about 0.4%. Replacing semiconductors as tech leaders are Apple (AAPL 351.04, +8.63) and Qualcomm (QCOM 56.75, +1.48), which both posted pleasing quarterly reports. Western Digital (WDC 41.42, +0.75) has also provided a boost to the sector, even though the company's latest earnings were only in line with expectations and the firm offered downside guidance during its conference call.
June Nymex WTI crude slipping back sharply from earlier highs of $112.44 to $111.09 as some squaring and dollar strength is seen ahead of the long weekend. Support today is now seen at $110.36 and $109.50 with resistance at $112.53 and $113.41.
EUR/USD weakens along with EUR/JPY selling. rate triggered stops under $1.4580 and currently holds around $1.4572. Area of $1.4550 below seen as holding bids.
Stocks were headed for another day of gains Thursday, with tech stocks aimed for a significant advance after Apple reported strong quarterly earnings.
Late Wednesday, Apple (AAPL, Fortune 500) reported an 83% jump in sales and said profit nearly doubled from a year earlier. Shares rose 4% in premarket trading.
Companies: Industrial conglomerate and Dow component General Electric (GE, Fortune 500) said first-quarter earnings rose 48% to $3.4 billion on revenue of $38.4 billion. The company also raised its quarterly dividend by a penny to 14 cents. GE shares rose 2% in premarket trading.
Economy: The Labor Department announced that jobless claims totaled 403,000 last week, which was stronger than the forecast, but had little impact on stock futures. Economists expected a drop to 390,000 from the prior week's revised figure of 416,000.
The Philadelphia Federal Reserve releases its April activity index at 14:00 GMT. The index of industrial activity in the Philadelphia region is expected to drop to 33 from last month's 43.4.
USD/JPY breaks under earlier day's low of Y81.86 and tests sizeable bids at Y81.60/70. Dollar printed session lows around Y81.72 for now.
Gold prices rose to a fresh high of $1509 before backing off sharply to $1502.65 as metal sees some profit taking ahead of the long weekend. Spot gold now $1503.50.
EUR/USD extends correction to current $1.4585 area with support seen at $1.4580, stronger toward $1.4550. Earlier rate printed session high on $1.4650, but strong resistance capped the rally and euro retreated.
08:00 Germany IFO business climate index (April) 110.4 111.0 111.1
08:30 UK PSNCR (March), bln 24.8 - 7.0
08:30 UK PSNB (March), bln 16.4 - 10.3
08:30 UK Retail sales (March) 0.2% -0.5% -0.8%
08:30 UK Retail sales (March) Y/Y 1.3% 1.0% 1.3%
Asian currencies climbed, led by Singapore’s dollar, on speculation regional central banks will tolerate faster appreciation and raise borrowing costs to tame inflation.
The Bank of Thailand raised interest rates yesterday, for the sixth time in less than a year, and signaled more increases are likely.
Chinese Premier Wen Jiabao and People’s Bank of China Deputy Governor Hu Xiaolian have said in the past week the yuan’s flexibility may play a role in countering the fastest inflation in 32 months.
The MSCI Asia-Pacific Index of regional stocks rose 1.2% after U.S. companies, including Apple Inc., reported better results than analysts had forecast.
The dollar dropped to its lowest level in more than two and a half years.
The Australian dollar surged to a fresh 29-year high against the dollar.
EUR/USD rose to session highs on $1.4650. Strong resistance and offers were able to cap the rally and euro retreated to $1.4611.
GBP/USD rose strongly from $1.6430 tо $1.6570 before it set stable.
USD/JPY holds tight within the Y81.85/Y81.20 range.
US data starts at 1230GMT, when initial jobless claims are expected to fall 17,000 to 395,000.
At 1400GMT, the Philadelphia Fed index is forecast to fall to 36.0 in April after hitting a 27-year high in March.
Also at 1400GMT, the index of leading indicators is expected to rise 0.3% in March after the 0.8% rise in February.
Barclays says US econ is better and Fed may have to wake up mkt soon. "At the April FOMC meeting next week, we expect the committee to signal that purchases will conclude in June. We believe the FOMC will avoid passive tightening".
EUR/GBP draggs lower after it broke support at stg0.8835/30, retreating from earlier highs of stg0.8878. A break below to open a deeper move toward stg0.8800/795, stops noted below stg0.8790.
The dollar tumbled to a three-year low against a basket of currencies on Thursday, with market players selling the greenback to buy buoyant risky assets. There is a risk to drive the dollar index towards its all-time low.
The dollar has taken a hit in the past few days as investors have flocked back to higher-yielding currencies, commodities and equities after a brief shake-out earlier in the week.
Traders said the there was a risk of a dollar rebound later in the day as market players cover short positions before long Easter weekends in many parts of the world.
But the overall outlook was dim for the dollar as the Fed is still buying bonds and the threat by ratings agency Standard & Poor's to cut the United States' prized AAA rating reminded investors of the hurdles the world's reserve currency faces.
A series of records have been broken this week, with gold vaulting to all-time highs above $1,500 an ounce and the Aussie powering to peaks above $1.07.
The euro has pushed to 15-month peaks but has lagged the broader move due to the ongoing worries about the euro zone crisis, underscored this week by reports that Greece may restructure its debt in coming months.
A solid auction of Spanish debt the previous day helped provide some reassurance that the problems plaguing Greece, Ireland and Portugal would not spread to the country seen as the next most vulnerable in the euro zone.
The single currency also appears to be poised for further gains on the charts. A break of the January 2010 high at $1.4583 opesn the way for a run at the 2009 peak at $1.5145.
Extends recovery, moves above reported resistance at $1.6550 to mark fresh 2011 high at $1.6553, with corrective pullbacks remaining shallow and keeping focus ont he upside. Next resistance seen at $1.6580, more close behind in the area from $1.6590 through to $1.6605.
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