Premarket spiked briefly this morning after Wells Fargo revealed its first-quarter profits per share of $1.04, handily topping expectations for 98 cents and Johnson & Johnson posted a beat on both lines in the first quarter.
U.S. Equities futures then dropped, at least temporarily, when U.S. Advance Retail Sales (MAR) fell below expectations, but rose over last report. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence.
Markets are expected to open lower.
Here is the current market situation from CNN Money
European markets are mixed. The FTSE 100 is higher by 0.26%, while the CAC 40 is leading the DAX lower. They are down 0.58% and 0.45% respectively.
HELSINKI/PARIS (Reuters) - Nokia Oyj is in talks to buy smaller telecom equipment maker Alcatel-Lucent , a deal that would combine the industry's two weakest players but could pose challenges in cutting costs and overcoming political opposition.
LONDON (Reuters) - Crude oil rose on Tuesday after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war.
It appears being Special Adviser to Japanese Prime Minister Shinzo Abe comes with great prerssure to toe the line - as opposed to advise. Koichi Hamada yesterday said USDJPY 105 was "appropriate" and USDJPY 120 was "too weak"... that sent USDJPY tumbling. These comments were reiterated in the early Asia session and adding that he "doesn't think JPY will weaken much further." We wake up this morning and reuters reports that he has entirely flip-flopped his views saying now that "120 is appropriate," and that he " would not oppose further easing." It's clear someone got a tap on the shoulder...
*JAPAN'S HAMADA SAYS YEN AT 105 PER DOLLAR WOULD BE APPROPRIATE
*JAPAN ABE ADVISER SAYS YEN AT 125/DOLLAR WOULDN'T BE JUSTIFIED
*HAMADA: YEN CAN DEVIATE 10%-20% FROM ITS APPROPRIATE LEVEL
*HAMADA SAYS HE DOESN'T THINK YEN WILL DROP MUCH FURTHER
The yen is fairly valued around current levels, a key economic adviser to Prime Minister Shinzo Abe said on Tuesday, a day after comments he made were taken to mean the yen was too weak.
"120 yen per dollar is acceptable," Hamada said in an interview.
"I would not oppose further easing on April 30, because inflation won't be generated even if the central bank eases again," he said. "But I would not on my own oppose the BOJ adopting monetary ...
WASHINGTON (Reuters) - A top regulator on Tuesday said the Securities and Exchange Commission will bring more enforcement actions against companies selling complex securities and risky structured products to retail investors.
The company behind one of the fastest-growing open-source software projects in history takes a fourth round of financing. They money is an indication of the pressures companies face to move fast as technology changes.
Following countless quarters in which JPM suffered about $30 billion in legal charges, the tempets in Jamie Dimon's legal settlement teapot may be quieting down, with a quarter in which JPM experienced "only" $687 million in pre-tax legal expenses, or about $0.13 in EPS.
As a result of this reduced kickback to the government to continue operating, JPM managed to beat expectations on both the top and bottom line, printing revenues and EPS of $24.8 billion amd $1.45 respectively, fractionally higher than the $24.5 Bn and $1.41 expected.
Actually, half of that was accurate: JPM's GAAP revenue of $24.1 billion missed expectations, however its "managed basis" non-GAAP revenue did beat.
So where did JPM derive its Q1 growth, GAAP, non-GAAP or otherwise?
Well, the core business of consumer and community banking reported Net Revenue of $10.7 billion, down from Q4, but barely up from a year ago, which as a result of expense cuts led to a $238MM increase in Net Income to $2.2 billion.
The owner of a small credit card processing company, Gravity Payments, said he heard stories of how tough it was to make ends meet even on salaries that exceeded the federal minimum wage. Above, the company's offices in Seattle.
TOKYO (Reuters) - The yen is fairly valued around current levels, a key economic adviser to Prime Minister Shinzo Abe said on Tuesday, a day after comments he made were taken to mean the yen was too weak.
LONDON (Reuters) - Citigroup Inc is looking for a buyer for its retail forex brokerage CitiFX Pro as part of efforts to streamline the banking world's biggest currency trading operation, a source familiar with the situation told Reuters on Tuesday.
BEIJING (Reuters) - Pressure on China's economy is increasing, and the country must prepare to face bigger economic difficulties, Premier Li Keqiang was reported as saying by Chinese state radio on Tuesday.
Judging by the recent action in equity futures, the continuously rangebound US market since the end of QE may be entering its latest downphase, catalyzed to a big extent by the recent strength in the JPY (the EURJPY traded down to 2 year lows overnight), especially following yesterday's not one but two statements by Abe advisor Harada saying a USDJPY at 125 isn't "justified" and a 105 level would be appropriate. A level, incidentally, which would push the Nikkei lower by about 20% and crush Japanese pensions which are now mostly invested in stocks. Not helping matters was the pause in the Chinese and Hang Seng stock bubbles, with the former barely rising 0.3%, while the former actually seeing its first 1.6% decline after many days of torrid, relentless rises.
That said, everything can and will change with today's March retail sales update. As a reminder, the past three months have seen the worst stretch since Lehman when it comes to US consumers spending their money at retail outlets or online, which has been mostly blamed on the winter. Of course, now that "bad is good" and vice versa once more, tje much anticipated rebound in retail sales will be very stock negative as it may mean that the Fed's June tightening is back on schedule. A jump in PPI today will also be bad news for momentum chasing "traders."
Indeed, Asian stocks traded mixed following a lacklustre Wall Street close, with investors observing caution ahead of the looming earnings season. The Shanghai Comp (0.3%) outperformed led by railway names amid talks that China is to invest CNY 2.8trl in railway infrastructure, while the Hang Seng (-1.6%) paused for breath, following its recent surge. Nikkei 225 (flat) consolidated throughout the session weighed on by continued JPY strength.
Bunds have ebbed higher in early trade to print yet another fresh contr ...
NEW YORK (Reuters) - Several high-ranking bankers have left their jobs at major investment banks in the last 13 months amid a surge in U.S. healthcare deal activity to seek better compensation at boutique investment banks as well as to participate in the growth of the industry at biotech companies themselves.
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