MARKETS AT A GLANCE
(Data as of approximately 5 p.m. ET)
LAST CHANGE % CHG
DJIA 16501.7 -12.72 -0.08%
Nasdaq 4126.97 -34.49 -0.83%
S&P 500 1875.39 -4.16 -0.22%
Japan: Nikkei 225 14546.3 157.5 1.09%
Hang Seng 22509.6 -221.04 -0.97%
Shanghai Composite 2067.38 -5.45 -0.26%
S&P BSE Sensex 22876.5 118.17 0.52%
Australia: S&P/ASX 5517.8 38.5 0.70%
UK: FTSE 100 6674.74 -7.02 -0.11%
PRICE CHG YIELD%
U.S. 2 Year 0/32 0.449
U.S. 5 Year -3/32 1.756
U.S. 10 Year 3/32 2.701
Australia 10 Year 10/32 3.978
China 10 Year 2/32 4.38
India 10 Year 0/32 8.852
Japan 10 Year -4/32 0.617
German 10 Year 3/32 1.528
LAST(MID) CHANGE
Australia $ (AUD/USD) 0.9286 -0.0005
Yen (USD/JPY) 102.55 0.01
S. Korean Won (USD/KRW) 1039.69 -0.16
Chinese Yuan (USD/CNY) 6.2378 -0.0002
Euro (EUR/USD) 1.3817 -0.0001
WSJ Dollar Index 73.11 0
LAST CHANGE % CHG
Crude Oil 101.53 -0.22 -0.22%
Brent Crude 109.2 -0.07 -0.06%
Gold 1284.1 3 0.23%
SNAPSHOT:
U.S. stocks edged lower and bonds gained as investors digested
mixed earnings reports and a disappointing new home sales data. Oil
futures slipped after a report showed U.S. supplies reached their
highest level in 83 years. Gold prices rose on Ukraine tensions and
weaker U.S. economic data. The dollar strengthened.
OPENING CALL:
In a light day for Asian data Thursday, South Korea reports
first-quarter GDP numbers. The nation's economy seems to have
regained some momentum after slowing toward the end of last year.
Still, the export picture has been mixed in recent months,
suggesting that first-quarter growth won't be stunning.
EQUITIES:
Stocks edged lower as investors digested mixed earnings reports,
with technology shares lagging after their recent rebound.
High-octane stocks in sectors such as biotechnology and social
media undid some of their latest rebound, after weeks of volatile
trading.
"We're definitely seeing the rotation back out of growth," said
Ian Winer, director of trading at Wedbush Securities. This time, he
said, investors were unsettled by news from individual companies.
"If a name doesn't have a good earnings report, it is getting hit
pretty hard," said Mr. Winer.
Also weighing on sentiment was a disappointing report on the
housing market. New-home sales for March declined 14.5% to a
seasonally adjusted annual rate of 384,000, while a rise of 2.3% to
a rate of 450,000 was expected.
Investors have been keeping a close eye on recent economic
reports, after a string of disappointing data at the beginning of
the year, amid an unusually icy winter. They are looking for growth
to rebound as the weather warms up.
"If it was all weather, it all should come back strongly," said
Jurrien Timmer, director of global macro strategy and portfolio
manager with Fidelity Investments. "If it only comes back halfway,
maybe it is something else...and earnings growth likely won't
accelerate."
In corporate news, biotech firm Intuitive Surgical dropped 11%
after reporting disappointing first-quarter results.
Streaming-video provider Netflix lost 5% after shareholders were
spooked by news that HBO agreed to license older episodes of its
shows to Amazon.com.
Asian markets were mixed in trading Wednesday. The Shanghai
Composite fell 0.4% after data showing China's manufacturing sector
improved slightly in March, but still pointed to a fourth straight
month of contraction. Japan's Nikkei Stock Average rallied
1.1%.
FOREX:
The Australian dollar tumbled after muted inflation data
scotched investors' expectations that the central bank would raise
interest rates.
Investors had been buying the Australian dollar since late
January. The wager was that Australia's economy could weather a
slowdown in China, its biggest export market, and that the Reserve
Bank of Australia would become the second major central bank-after
New Zealand-to raise rates since the financial crisis. Higher
interest rates would support the Aussie by boosting returns on
assets denominated in the currency, attracting investors.
That support crumbled with the lower-than-expected inflation
figures released Wednesday. Consumer prices rose 2.9% in the first
quarter from a year earlier, compared with an average forecast for
a 3.2% increase. The Reserve Bank of Australia is widely seen as
unlikely to raise rates unless inflation is above its target range
of 2% to 3%.
BONDS:
Treasury bonds rose as a weak U.S. housing report deflated
optimism over the economic outlook and stoked demand for haven
assets.
Geopolitical tension in Ukraine and concerns about China's
economy also boosted the U.S. government-debt market.
An unexpected 14.5% drop in new-home sales in March raised
concerns about whether the U.S. economy could shake off the recent
weakness driven by harsh winter weather. Analysts said any further
weakness in the housing market would bolster the Federal Reserve's
case for taking its time to withdraw monetary stimulus -- that
stimulus has played a big part in keeping bond yields near
historically low levels following the 2008 global financial
crisis.
"It suggests a weaker recovery than people expected especially
as March data should not be as weather impacted," said Priya Misra,
head of U.S. rates strategy research at Bank of America Merrill
Lynch in New York. The report "should argue for a longer on hold
Federal Reserve, hence lower bond yields."
The 10-year Treasury yield rose more than one percentage point
last year, driven by the prospect of reduced bond buying from the
Fed. But the yield has fallen this year even as the Fed has reduced
bond buying since January. Uncertainty over the global growth
outlook soothed fears the Fed may quicken the pace of withdrawing
stimulus, renewing buying interest in Treasury bonds.
Analysts expect the 10-year yield to stay in the range of 2.6%
to 2.8%, which has dominated trading since February, until data
signals U.S. economic growth will accelerate.
COMMODITIES:
Oil futures slipped after government data showed U.S. oil stocks
were at their highest level in 83 years.
Crude-oil stockpiles rose by 3.5 million barrels to 397.7
million barrels in the week ended April 18, the U.S. Energy
Information Administration said Wednesday. Analysts surveyed by The
Wall Street Journal expected a 2.4 million-barrel increase.
Supplies stand at an all-time high in weekly EIA data going back
to August 1982.
In monthly data going back to 1920, last week's supplies are the
highest since May 1931.
"The market is holding firm in the face of a pretty significant
surplus' in supply, said Tim Evans, analyst at Citi Futures
Perspective. "We clearly are not making an 83-year low in
price."
Prices have climbed above $100 a barrel in recent weeks despite
rising stockpiles because storage supplies in Cushing, Okla., the
delivery point for the Nymex contract, have been shrinking.
A new pipeline opened on Jan. 22 to move supplies out of Cushing
to refineries on the Gulf Coast. Cushing supplies now stand at
their lowest level since 2009, and futures prices have risen as
traders have focused on the large drops in Cushing inventories, Mr.
Evans said.
Gold prices rose as renewed tensions in Eastern Europe and mixed
U.S. economic data buoyed investor interest in the asset.
Gold prices have swung between gains and losses in recent weeks,
as some investors focused on the crisis in Ukraine while others
tracked shifting expectations for U.S. economic growth.
TODAY'S HEADLINES:
Apple Reports 7% Profit Increase
Apple reported a 7% increase in quarterly profit to $10.22
billion, amid intensifying competition for mobile devices, and
announced increases to its stock buyback and dividend programs.
Revenue rose to $45.65 billion.
Facebook Results Surge as Ad Revenue Keeps Climbing
Facebook displayed new evidence of its advertising momentum as
it posted first-quarter earnings that nearly tripled, giving the
company more resources to challenge bigger players in the
technology industry. Revenue climbed to $2.5 billion, beating the
$2.36 billion expected by analysts.
Qualcomm Profit Rises 5%
Qualcomm reported its fiscal second-quarter profit grew as the
chip maker reported higher shipments, which boosted the top line.
Adjusted profit grew to $1.31 a share on revenue of $6.37 billion.
Shares slid 3% late.
Zynga Founder Gives Up Operating Duties
Zynga said founder Mark Pincus is giving up his operating role
at the company, one of several management changes announced along
with first-quarter results that include a 36% decline in
revenue.
U.S. New-Home Sales Plunge
Sales of newly built homes tumbled 14.5% in March from February,
the latest sign of a faltering U.S. housing market that has
struggled to maintain its momentum in the last year.
Russia Foreign Minister Warns Ukraine
Russia warned that any attack on its citizens in Ukraine would
be considered an attack on Russia itself, as the Ukrainian
government resumed its military operation against pro-Russian
militants who have taken over several cities in the eastern party
of the country.
Boeing's Profit Slides on Pension Costs
Boeing's 1Q earnings fell 13% to $965 million, or $1.28 a share,
as costs tied to changes to its retirement plans masked continued
demand for its jetliners. Shares rose 2% as results beat
expectations and Boeing raised its earnings guidance.
P&G Profit Edges Up
Procter & Gamble's profit grew just slightly in the first
three months of the year, as the world's largest consumer-products
maker struggled to expand in slow-growing markets where shoppers
have cut back their spending on many everyday items.
Delta Profit Jumps Despite Weather Troubles
Delta Air Lines said 1Q earnings surged to $213 million, or 25
cents a share, with higher passenger demand. Revenue rose 4.9% to
$8.92 billion.
RECENT DJ DOMINANTS:
FCC To Propose New 'Net Neutrality' Rules
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Two More Prominent Hospitals Halt Hysterectomy Procedure
Peru Takes Harder Line on Illegal Gold Mining
ECB Ready to Act if Inflation Misses Target
TODAY'S CALENDAR:
(Times in GMT, followed by country and event)
2100 SKA Mar Department store sales
2100 NZ Reserve Bank of New Zealand Official Cash Rate
announcement
2300 SKA Q1 Advance GDP
2350 JPN Mar Corporate Service Price Index
0300 INA Q1 Quarterly Investment Data Foreign and Domestic
Investment Realization Results
0645 FRA Apr Monthly business survey (goods-producing
industries)
0645 FRA French President Francois Hollande meets Polish Prime
Minister Donald Tusk
0800 GER Apr Ifo Business Climate Index
0830 UK Mar UK monthly automotive production figures
0900 ITA Mar Foreign Trade non-EU
0900 EU ECB President Mario Draghi speaks at Nederlandsche Bank
conference
1000 UK Apr CBI Monthly Distributive Trades Survey
1230 US 04/19 Unemployment Insurance Weekly Claims Report -
Initial Claims
1230 US U.S. Weekly Export Sales
1230 CAN Mar March intentions of principal field crop areas
1230 US Mar Advance Report on Durable Goods
1330 US IMF regular press briefing
1345 US Bloomberg Consumer Comfort Index
1400 US 04/12 DJ-BTMU U.S. Business Barometer
1430 US 04/18 EIA Weekly Natural Gas Storage Report
1500 US Apr Federal Reserve Bank of Kansas City Survey of Tenth
District
1800 CAN Apr Bank of Canada Banking and Financial Statistics
1845 CAN Bank of Canada Governor Stephen Poloz speech at
Saskatchewan Trade & Export Partnership
2030 US Foreign Central Bank Holdings
2030 US Federal Discount Window Borrowings
2030 US Money Stock Measures
2330 JPN Mar CPI (Nation), CPI ex-food (Nation)
2330 JPN Apr CPI (Tokyo), CPI ex-Food (Tokyo)