Written by Gary
The morning losses were significant and after the ‘Consumer Confidence’ report came in, the Averages zoomed back up past unchanged line to post some green where they have been trading in a sea-saw fashion, trending slightly higher.
The gauge of consumer confidence fell to 95.2 in April, from 101.3 the month prior. The reading came in below Wall Street expectations for an increase to 102.5 and yes this bad news pushed the markets higher on moderate to low volume. The small caps have remained in the red, but near the unchanged line.
Here is the current market situation from CNN Money
North and South American markets are mixed. The S&P 500 is higher by 0.16%, while the Bovespa is leading the IPC lower. They are down 0.42% and 0.41% respectively.
Traders Corner – Health of the Market
What Is Moving the Markets
% Bullish (the balance is Bearish)
Above 50 = greed, below 50 = fear
Above 50 bullish
anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash.
In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction.
ten year note index value
As long as the consumer discretionary holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy
Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors
|Here are the headlines moving the markets.|
COLUMBUS, Ind. (AP) _ Cummins Inc. (CMI) on Tuesday reported first-quarter earnings of $387 million. On a per-share basis, the Columbus, Indiana-based company said it had net income of $2.14. Earnings, adjusted for pretax gains, were $2.04 per share. The results did not meet Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $2.12 per share. The engine maker posted revenue of $4.71 billion in the period, which beat Street forecasts. Eight analysts surveyed by Zacks expected $4.61 billion. Cummins shares have decreased slightly more than 3 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen slightly more than 2 percent. The stock has dropped slightly more than 5 percent in the last 12 months.
CIT said its profit fell in the first quarter because of a new drop in new commercial loans and financial problems at three airline customers.
US equity markets have v-shape-recovered this morning after plunging on a combination of good housing data (that’s bad news), weak manufacturing data and dismal consumer confidence which then was accelerated as Iran headlines smashed oil higher. All that was quickly forgiven and stocks have soared… Small Caps are now 1.5% as ‘investors’ panic-buy back to the highs of the day… VIX was monkey-hammered from 14.25 to back under 13.
as it seems someone decided – long before the headlines hit that this was a non-US Ship – that VIX was to sold hard…
BERLIN (Reuters) – Talks between the European Union and United States on a transatlantic trade accord will stretch into 2016, the EU’s chief negotiator said on Tuesday, adding that the discussions were about to enter a “more difficult” and “intense” stage.
Following initial confusion about which ship was shot at, seized and confiscated by Iran, with Arabiya and Farsnews reporting it was a US ship with 34 soldiers on board, while the Pentagon subsequently stating there were no US personnel on the cargo ship which was a Marshall Island-flagged cargo vessel, the Maersk Tigris, the situation still remains fluid, especially considering the latest news out of the Pentagon:
U.S. SENT DESTROYER AND AIRCRAFT TO MONITOR SHIP, WARREN SAYS
But why if it isn’t a US ship? And how will Iran react when the US naval “cavalry” arrives in its territorial waters?
Meanwhile, those curious can track the ship alleged confiscated ship, the Tigris, in real time courtesy of Marine Traffic (link). One thing is clear: there are no US cargo ships anywhere in the vicinity of the Tigris…
… There may be some military ones soon, but that’s a different story.
DEARBORN, Mich. (Reuters) – Ford Motor Co reported a first-quarter profit that was less than analysts expected, selling fewer vehicles in North America as it worked to increase production of the redesigned F-150 pickup truck, and losing money in South America.
Econintersect: This leading index is now forecasting growth at 1.0% over the next 6 months – and significantly revised downward the index values in 2015. A review of all major leading indicators follows – and no leading index is particularily strong.
Read more …
LONG ISLAND CITY, N.Y. (AP) _ JetBlue Airways Corp. (JBLU) on Tuesday reported first-quarter earnings of $137 million. On a per-share basis, the Long Island City, New York-based company said it had net income of 40 cents. The results topped Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share. The airline posted revenue of $1.52 billion in the period, matching Street forecasts. JetBlue shares have climbed 24 percent since the beginning of the year. The stock has more than doubled in the last 12 months.
Adjusted earnings fell 20 percent at BP and 22 percent at Total, but the results were offset by strong performances at their marketing and refining businesses.
ATHENS (Reuters) – Greek Prime Minister Alexis Tsipras said on Tuesday he was confident of an outline deal with international creditors within two weeks, after shaking up his negotiating team and sidelining his finance minister who has infuriated euro zone partners.
U.S. home prices climbed at a faster pace in February than the previous month, driven by higher sales and a limited supply of available houses.
DALLAS (AP) — UPS boosted first-quarter earnings by 14 percent as things like charging more for bulky but lightweight boxes helped increase U.S. revenue. The domestic growth offset international revenue that was hurt because sales were less valuable when converted into the strong U.S. dollar. The $1.03 billion profit beat Wall Street forecasts, although revenue was less than expected. The company stood by its forecast for full-year earnings. The shares rose more than 3 percent in morning trading. United Parcel Service Inc. said Tuesday that its net income equaled $1.12 per share and compared with profit of $911 million, or 98 cents per share, a year earlier. The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of $1.09 per share.
The day after violent protests left Baltimore burning in the wake of a funeral held for Freddie Gray who died after sustaining a spinal injury while being taken into policy custody, Americans are struggling to explain how the events that transpired on Monday evening are possible in modern day America. While most are united in their condemnation of indiscriminant violence, many still feel a palpable sense of injustice after witnessing multiple instances of alleged police misconduct over the past year.
In this context we present the following culled from Twitter messages posted by Orioles Executive Vice President John Angelos, son of majority owner Peter Angelos:
Both BP and Total are suffering from low oil prices but found similar sources of strength in the first quarter. But the French company has certain advantages this year.
Merck shares were up substantially after the drugmaker posted earnings well above expectations.
NEW YORK (AP) — U.S. stocks fluctuated between gains and losses Tuesday as investors worked through the latest round of earnings reports. Pharmaceutical stocks rose after drug giant Merck reported better-than-expected results. Investors also reacted negatively to a report that showed U.S. consumer confidence at a four-month low. KEEPING SCORE: The Dow Jones industrial average was up 27 points, or 0.2 percent, to 18,063 as of 11:10 a.m. Eastern. It was down 120 points earlier. The Standard & Poor’s 500 index rose a point to 2,110 and the Nasdaq composite was unchanged at 5,060. HEALTHY: Merck rose $2.94, or 5 percent, to $60.03. While the company’s profits fell 44 percent from a year ago, the results still handily beat analysts’ estimates. Adjusted earnings for the maker of diabetes drugs Januvia and Janumet were 85 cents a share versus the 75 cents expected by analysts.
Of the five regional Federal Reserve surveys released to date, one shows manufacturing expanding weakly and four are in contraction. The market expected this survey index at -3 to +2 (consensus -2.0) versus the -3.0 actual [note that values above zero represent expansion].
Read more …
It took 25 days to recover, and 2 days to lose all the exuberance that was ‘well-deserved’ and M&A-boom-driven, according to analysts.
But with a drop of over 10%, Biotechs are officialy in ‘correction’ and falling on heavy volume…
NEW YORK (Reuters) – U.S. single-family home prices rose in February from a year earlier, led by strong increases in the western half of the United States, a closely watched survey said on Tuesday.
(Reuters) – U.S. stocks fell in volatile early trading on Tuesday as strong results from Merck and better-than-expected housing data helped offset disappointing earnings and profit-taking in Apple.
Update 3: Turns out Iran did seize a ship, just not a US ship:
PENTAGON SAYS NO US SHIP WAS SEIZED BY IRAN
NON-U.S. SHIP MAY HAVE BEEN SEIZED BY IRAN, U.S. OFFICIAL SAYS
IRANIAN MILITARY BOARDED MARSHALL ISLANDS-FLAGGED CARGO SHIP
IRANIANS BOARDED MV MAERSK TIGRIS CARGO SHIP: PENTAGON
Update 2: Curiously, while we were confident Iran would deny the report first, it was in fact the US: US NAVY DENIES CONFRONTATION WITH IRANIAN MILITARY: CNBC
The good news is that it will be very easy to confirm who is lying and who is telling the truth, in a matter of hours.
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Update: WHITE HOUSE REFERS COMMENT ON IRAN SHIP CAPTURE TO DEFENSE DEPT
Written by Doug Short and Steven Hansen
The Conference Board Consumer Confidence Index declined. The market expected this index to come in at 100.5 to 104.0 (consensus 103.0) versus the 101.4 reported.
Read more …
Drugmaker Merck & Co. easily beat Wall Street expectations despite first-quarter profit plunging 44 percent, hurt by the sale of its consumer health business, unfavorable currency exchange rates and competition to some drugs.
U.S. consumer confidence unexpectedly slumped in April, according to a private sector report released on Tuesday.
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