Benchmark US stock indices finished higher amid choppy uneventful trading. The markets snapped a three day losing streak as investors shrugged off resurging geopolitical concerns surrounding Ukraine and muted economic data around the globe. On the S&P 500, Utilities and Energy led gains, while Telecomm and Healthcare were the only groups lower. Gold and Oil surged amid a sharp drop in the dollar.
Earnings season unofficially kicks off this afternoon with Alcoa (NYSE:AA) reporting after the close. S&P 500 companies' first-quarter earnings are projected to have increased just 1% from a year ago, which is down sharply from the start of the year, when profit growth was estimated at 6.5%.
In US economic news, the National Federation of Independent Businesses said its small business optimism index jumped 2.0 points to 93.4 to nearly reverse a 2.7 point downswing in February. The March gain is led by expectations for future sales and by plans to build inventories, both pointing to expectations of building strength.
Market Indices/Statistics:
- Dow closed up 10.27 pts. / +0.06% to 16,256.14; 18 of the 30 Dow stocks closed higher.
- S&P closed up 6.92 pts. / +0.38 to 1,851.96; 8 of the 10 S&P 500 sectors closed higher.
- Nasdaq closed up 33.88 pts. / +0.83% to 4,113.63
- Utilities was the strongest sector (+1.40%) Healthcare was the weakest (-0.67%)
- The VIX is down 0.71 to 14.86
- Gold is down 11.1 to 1309.4
- Oil is down 2.08 to 102.52
- Nat Gas is up 0.063 to 4.539
- Yen vs. Dollar is down 1.38 to 101.71
- Euro vs. Dollar is up 0.0055 to 1.3795
- The US Dollar Index (DXY) is down 0.46 at 79.76
Top Headlines:
A recent Financial Times article said that in just over a month, the 14 largest internet companies have lost about $275 billion in market value, representing a little more than a fifth of their combined stock market value. The paper said highlighted two possible reasons for the selloff, one a temporary correction on valuation that has shaken out speculative excess, and a shift in global risk appetite amid geopolitical concerns and Fed leadership related to higher rates. Investors however stepped in and bought shares of the beaten down companies, with Amazon (AMZN), Yahoo! (YHOO) and LinkedIN (NYSE:LNKD)as some of the today’s top performers.
Nokia Corp (NYSE:NOK) rose 4.99% to $7.58 after announcing on Tuesday it has received approval from Chinese authorities to sell its mobile phone business to Microsoft (MSFT). Recall the Finnish Nokia agreed in September 2013 to sell its flagship business to MSFT for $7.4B, but keep its patent portfolio, which analysts’ view as a promising source of future growth.
AK Steel Holding Corp (NYSE:AKS) extended its recent rally after the company said late Monday that effective immediately, it would increase the current spot market base price for its hot roll carbon steel to a minimum of $700 per ton. Shares rose 5.77% to $7.52 in active NY trading.
Alcoa Inc. (NYSE:AA) reports Q1 EPS of $0.09 (ex-items) vs FactSet $0.05, and revenue $5.45B vs FactSet $5.57B. Shares are currently 1.2% higher to $12.66 in post market trading.
Coming Wednesday
U.S. Economic Reports:
Weekly MBA Mortgage Applications at 7am ET - prior +0.9%
Wholesale Inventories (Feb) at 10:00am ET – consensus +0.6%, prior +0.7%
Weekly DOE Crude Inventories at 10:30am ET - prior (2.4M)
Earnings Wednesday:
BMO: Consumer Portfolio Services (CPSS) est. $0.19; MSC Industrial (MSM) est. $0.85; Penford (PENX) est. $0.12; Constellation Brands (STZ) est. $0.76
AMC: Apogee Enterprises (APOG) est. $0.29; Bed Bath & Beyond (BBBY) est. $2.60; Joe’s Jeans (JOEZ) est. (0.04); PriceSmart (PSMT) est. $0.88; Ruby Tuesday (RT) est. (0.07); Simulations Plus (SLP) est. $0.08
Here at the NYSE- Opening and Closing Bells
At the open:
OnWednesday, April 9th, executives and guests of Texas-based La Quinta Holdings Inc. (NYSE:LQ) will visit the New York Stock Exchange (NYSE) to celebrate their IPO. To mark the occasion President & CEO, Wayne Goldberg, will ring the Opening Bell.
At the close:
On Wednesday, April 9, 2014, executives and guests of Scottsdale, Ariz.-based Taylor Morrison (NYSE:TMHC) will visit the New York Stock Exchange (NYSE). To mark the occasion, Sheryl Palmer, President and CEO of Taylor Morrison, joined by members of the company’s management team, will ring the Closing Bell.
Please remember to check in with us every morning for the NYSE Morning Update!
Thanks and have a great evening!
