Morning DOW Index Market Report
Tue 17 Apr 2012 08:03:00 CT
Related Keywords: Equity Index
Related Keywords: Equity Index
The June E-mini Dow has climbed higher this morning and showed relative strength compared to the other major US indices throughout yesterday's session The Dow Jones was initially supported by gains in IBM and Caterpillar, and then by a favorable reaction to March Retail Sales data from Wal-Mart and Procter & Gamble. A number of Dow Jones components report earnings today, with Coca-Cola and Johnson & Johnson prior to the Wall Street open, then Intel and IBM after the close. Intel is expected to report a decline in earnings of around 15.0% compared to the year ago quarter. Meanwhile, expectations are for IBM to show earnings growth of 10.0% and that in turn could raise software demand forecasts.
Global equity markets have seen mixed results overnight, with follow through weakness in Asian markets followed by favorable European data that helped to improve overall market sentiment. China's Shanghai Composite fell to a new three-day low overnight, weighed down by reports of the fifth monthly decline in China's foreign direct investment. Equity market sentiment took a significant turn higher after a successful Spanish T-Bill auction and a better than expected reading on German economic sentiment. Spain sold around 3.18 billion euros worth of short term debt and while borrowing costs were higher, many traders felt that there was a boost to market confidence that Spain was able to tap into capital markets. A private survey of German economic sentiment showed an unexpected gain to the highest level since June 2010, which may have provided further evidence that their economy is recovering from a recent economic pullback. These two developments were widely seen as helping to restore sentiment in the market and helped lift major European stock indices as well as US equity futures to their highest levels of the session. There were also supportive comments from St. Louis Fed President James Bullard late Monday, where he forecasted US growth in 2012 to run near 3.0%. US markets face an active economic report flow this morning, with March Housing Starts expected to show improvement compared to the previous month while March building permits are expected to hold near last month's pace. March Industrial Production is expected to show improvement, with forecasts for Capacity Utilization predicting a rise to the highest levels since July 2008.
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Global equity markets have seen mixed results overnight, with follow through weakness in Asian markets followed by favorable European data that helped to improve overall market sentiment. China's Shanghai Composite fell to a new three-day low overnight, weighed down by reports of the fifth monthly decline in China's foreign direct investment. Equity market sentiment took a significant turn higher after a successful Spanish T-Bill auction and a better than expected reading on German economic sentiment. Spain sold around 3.18 billion euros worth of short term debt and while borrowing costs were higher, many traders felt that there was a boost to market confidence that Spain was able to tap into capital markets. A private survey of German economic sentiment showed an unexpected gain to the highest level since June 2010, which may have provided further evidence that their economy is recovering from a recent economic pullback. These two developments were widely seen as helping to restore sentiment in the market and helped lift major European stock indices as well as US equity futures to their highest levels of the session. There were also supportive comments from St. Louis Fed President James Bullard late Monday, where he forecasted US growth in 2012 to run near 3.0%. US markets face an active economic report flow this morning, with March Housing Starts expected to show improvement compared to the previous month while March building permits are expected to hold near last month's pace. March Industrial Production is expected to show improvement, with forecasts for Capacity Utilization predicting a rise to the highest levels since July 2008.
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
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