Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20
Gold Gann Angle Update - 10th Jan 20
Gold In Rally Mode Suggests Commitment of Traders (COT) Data - 10th Jan 20
Disney Could Mount Its Biggest Rally in 2020 - 10th Jan 20
How on Earth Can Gold Decline During the U.S. – Iran Crisis? - 10th Jan 20
Getting Your HR Budget in Line - 10th Jan 20
The Fed Protects Gamblers at the Expense of the Economy - 9th Jan 20
Last Chance to Get Microsoft Windows 10 for FREE! - 9th Jan 20
The Stock Market is the Opiate of the Masses - 9th Jan 20
Is The Energy Sector Setting Up Another Great Entry? - 9th Jan 20
The Fed Is Creating a Monster Bubble - 9th Jan 20
If History Repeats, Video Game Stocks Could Soar 600%+ - 9th Jan 20
What to Know Before Buying a Land Rover Discovery Sport in 2020 - 8th Jan 20
Stock Market Forecast 2020 Trend Analysis - 8th Jan 20
Gold Price at Resistance - 8th Jan 20
The Fed Has Quietly Started QE4 - 8th Jan 20
NASDAQ Set to Fall 1000pts Early 2020, and What it Means for Gold Price - 8th Jan 20
Gold 2020 - Financial Analysts and Major Financial Institutions Outlook - 8th Jan 20
Stock Market Trend Review - 8th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Another Late Rally Lifts Stock Market Indices

Stock-Markets / Financial Markets 2009 Apr 17, 2009 - 06:06 AM GMT

By: PaddyPowerTrader

Stock-Markets

Best Financial Markets Analysis ArticleIt seemed like déjà vu for the markets yesterday. They had a slow choppy start before a late rally resulted in more healthy gains. Traders yet again shrugged off concerns about the economy and instead bet that crucial earnings reports will impress. Consumer discretionary stocks staged the best advance with tech stocks not far behind. Will indices do it again heading into the weekend?


Today’s Market Moving Stories

  • The Euro took another hit overnight after ECB President Jean-Claude Trichet said he appreciated US comments that a strong dollar was in its interests. He also said that the ECB would do what was necessary to restore confidence in the global economy. They would decide on non-standard policy steps in May, but that it was important not to create expectations. EURUSD traded as low as 1.3065 during Asian trade as the downward trend continues.
  • British Trade and Investment Minister Mervyn Davies said that he is not worried about a further slide in Sterling, saying that a weak currency will help drive the British economy out of recession. They are going to need a bit for help as the OECD thinks that the UK economy will contract by 3.7% this year while the IMF thinks it will suffer an even worse 3.8% decline.
  • Federal Reserve Bank of San Francisco President Janet Yellen signalled that it was a mistake to allow Lehman Brothers to collapse, saying the firm was “too big to fail” and its bankruptcy caused a “quantum” jump in the magnitude of the financial crisis.
  • Economic data continues to be poor as US housing construction unexpectedly plunged in March and the number of people receiving jobless benefits grew. But those reports also included some silver linings suggesting the recession may be easing. The pace of new-home construction seems to be nearing a bottom and first-time jobless benefit claims fell more than expected for the second straight week.

Googling As A New Leading Indicator
Here’s a strange economic indicator, but as the strongly correlated graph on the right suggests, it could be a good one. Hal Varian, a professor of economics at the University of California, believes that data on internet searches can help predict certain kinds of economic statistics before they become available. He argues that fluctuations in the frequency with which people search for certain words or phrases online can improve the accuracy of the models used to predict, for example, retail-sales figures or house sales. He uses Google Trends to test this and the correlation between searches for Ford vehicles and Ford’s actual vehicle sales suggests that he may be onto a winner. However Mr Varian does have a vested interest in finding such correlations as he is also Google’s chief economist!

Equities

  • Google reported first quarter earnings of $5.16 per share, which was about $0.23 better than the analyst consensus of $4.93. This was due to strong cost cutting measures. Will this mean that they won’t pamper their rapidly expanding work force as much going forward. Revenue was slightly below expectations, rising 10.1% yoy to $4.07bn. The shares are expected to open about 1% down when the US gets going at 14:30.
  • Biogen reported EPS of $1.05 after hours. Élan traders would have been watching the Tysabri revenue figure which came in at $165 million, below the $188.3 million consensus. However, Biogen did give a relatively positive outlook. Their shares were off about 1.7% in afterhours and Élan have opened up in Dublin about 0.5% down.
  • Irish Nationwide released their 2008 results showing an after tax loss of €243 million, heavily impacted by a loan loss provision of €464 million. They’ve admitted that their ability to raise funding “on a continuing basis” is dependant on the State bank guarantee. Not good news and it’s weighing down the other Irish banking heavies, AIB and Bank of Ireland, this morning.
  • Sony Ericsson swung to a net loss of €293 million in the first quarter of 2009. Last year, the firm posted a profit of €133 million. They expect the global handset market to contract by at least 10% in 2009.
  • Southwest Airlines and Ryanair are very similar companies – after all, Michael O’Leary did copy the American company’s business model when he took over. Anyway, Southwest reported disappointing Q1 results yesterday and their shares dropped over 10%. They’re down 60% since last September alone. In contrast Ryanair are up nearly 50% since last September. The fortunes of the US economy has been quite a good leading indicator for the European economy in the past couple of years. If this continues to hold true for the airline industry, then Ryanair could be under pressure in the months ahead.
  • JPMorgan Chase beat Wall Street expectations with its first-quarter earnings and issued forceful statements about its confidence in its own strength, saying that they would like to repay the bailout money from the government “as soon as possible.” Net income was $2.1bn, 40 cents a share.
  • Less than a year after Toyota overtook General Motors to nab the top spot, Volkswagen may pass Toyota as the world’s top selling automaker in the first quarter. With Germans snapping up subsidised cars, Volkswagen has seen robust demand in its main markets, while its Japanese rival suffered sharp declines.

Economic And Earnings Today
The major economic release today is the preliminary University of Michigan consumer sentiment survey for April 14:55. The expectation is for a slight improvement in the figure to 58.5 from 57.3 in March.

Before US open today, Citigroup reports its first quarter results, and is expected to post a loss of $0.34 per share unlike other major financial institutions that have reported profits. General Electric is also slated to release its first quarter results before the open. Earnings per share is expected to drop roughly 50% to $0.21 per share, with its financial business expected to show weakness.

And Finally… Idiot Teacher Vandaling Her Own Career
She should count her lucky stars that she even has a job. If I was the boss, and she was protesting against me, showing that level of incompetence, I would have her fired instantly!

Disclosures = None

By The Mole
PaddyPowerTrader.com

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.

© 2009 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules