U.S. stocks advanced today after a tame yet rocky day just a day before JPMorgan announces earnings. Banks moved ahead 5.56% on optimism that JPMorgan could surprise investors with its earnings report tomorrow. The latest two disappointing pieces of macroeconomic data adds strength to the arguments that the U.S. economy will continue to slide deeper into recession and that economists have been too optimistic in their forecasts.
[U][B]US Session Key Developements[/B][/U][B]
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[li][B]Banks Rally on JPMorgan Earnings Optimism[/B] [/li][li][B]Consumer Prices Slump for First Time Since 1955[/B] [/li][li][B]Industrial Output Contracts More Than Expected[/B] [/li][/ul]
[B]Stocks Finish Up on Rocky Day Prior to Bank Earnings[/B]
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U.S. stocks advanced today after a tame yet rocky day just a day before [B]JPMorgan[/B] announces earnings. Banks moved ahead 5.56% on optimism that JPMorgan could surprise investors with its earnings report tomorrow. The bank, which took over Bear Stearns and Wachovia last year, gained 6.1% in anticipation that it will beat the $1.47 per share earnings estimate that surveys have forecast. [B]Wells Fargo[/B] went along with the ride and jumped 7%. [B]Citigroup[/B], however, was unable to keep up and actually slipped 1%, only two days from its own earnings release. Consumer Prices in March surprsingly contracted for the first time since 1955 after energy fell 3%. The move in energy offset the gains seen in February. Deflation, as it now appears to have become, comes on the back of plummeting Industrial Output in the month of March. Figures show that the United States produced far less capital intensive goods than had been expected by economists, by -1.5% vs -0.9%. The latest two disappointing pieces of macroeconomic data adds strength to the arguments that the U.S. economy will continue to slide deeper into recession and that economists have been too optimistic in their forecasts.
[B]Dow 30 8029.62 +109.44 +1.38%[/B]
Blue chips advanced with American Express surging12% after the U.S.’ largest credit card company by purhcases reported that that write-offs on uncollectable loans rose less than that which was expected by analysts, by 8.8%.
[B]NAS 100 1626.80 +1.08 +0.07%[/B]
Technology took a deep dive compared to the rest of the market, falling 0.78% as a sector. Big names like Microsoft and Intel lost more than 2.4% with Cisco losing 2.1%.
[B]SPX 500 852.06 +10.56 +1.25%[/B]
Implied volatility on the S&P 500 dropped by 1.5 points, or 4% as stocks rode a rocky rollercoaster before shooting nearly straight up. The only sector to finish in the red was Information Technology as giants like Microsoft and Intell shed some points.
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[U][B]Notable [/B][/U][B][U]US[/U][U] Event Risk / Economic Releases[/U][/B]
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