Better than expected retail sales and a possible buy-on-the-dip
mentality propelled the markets higher despite a luke-warm start to
earnings season Tuesday.
The Dow ended up three-quarters of a percent to close at
16,376.86. The S&P gained more than one percent to finish at
1,838.88, and the NASDAQ saw the largest gains of the day, 0.7
percent, to close at 4,183.88.
U.S. markets are showing modest strength in premarket trading
Wednesday morning. The Dow is up about 19 points while the S&P
is up about two. The NASDAQ is up 10 points in early trading.
) CEO Tim Cook calls Apple's deal with China Mobile a "watershed"
moment. He also said in a CNBC interview that Apple sold more
iPhones in China last year than ever in its history. General
) announces that it will pay its first quarterly dividend in six
years. Shares rose more than three percent on the news.
) gained 12 percent yesterday after disclosing fourth-quarter sales
figures 20 percent higher than analyst forecasts. The World Bank
says that the global economy is at a "turning point."
Improving global demand forecasts propelled Asian markets mostly
higher Wednesday. The Nikkei gained 2.5 percent to close at
The Shanghai composite was about 0.2 percent to close at
2,023.35 and the Hang Seng, up about 0.5 percent to close at
European markets reached 5-1/2 year highs despite lower than
expected German GDP. The FTSE and the CAC are each up about 0.3
percent while The DAX is up about 0.8 percent.
Commodities are mostly lower this morning. WTI is flat at $92.68
while Brent is down 0.2 percent at $106.15. Natural Gas is down
about 0.3 percent at $4.356.
Gold is down about 0.6 percent at $1,237.40 and Silver is down
one percent at $20.07. Copper is down 0.6 percent at $3.31
The yen and Australian dollar fell sharply early Wednesday.
The euro is lower against the dollar at 1.3628 while the
pound is down fractionally against the U.S. currency. The dollar is
currently about 0.1 percent higher against the yen after a one
percent move bringing it to 104.29 against the Japanese currency.
The Aussie dollar is 0.7 percent lower against dollar 0.89.
General Motors (NYSE:
) is up three percent on the news it will pay a dividend. Bank of
) is up 0.6 percent as the market awaits its earnings announcement.
) is down 0.8 percent in low-volume trading.
JP Morgan (NYSE:
) reported EPS of $1.40 versus estimates of $1.24 on revenue of
$24.1 billion versus the $23.81 billion estimate. Wells
) reported EPS of $1.00 versus estimates of $0.98 on revenue of
$20.67 billion versus the $20.63 billion estimate.
Notable earnings today include:
Bank of America (NYSE:
) is projected to report its Q4 earnings at $0.20 per share on
revenue of $22.31 billion. Fastenal Company (NASDAQ:
) is expected to report its Q4 earnings at $0.34 per share on
revenue of $813.25 million. CSX (NYSE:
) is projected to report its Q4 earnings at $0.43 per share on
revenue of $3.01 billion. CLARCOR (NYSE:
) is estimated to post its Q4 earnings at $0.70 per share on
revenue of $304.09 million. HB Fuller Co (NYSE:
) is estimated to post its Q4 earnings at $0.75 per share on
revenue of $527.18 million. Plexus (NASDAQ:
) is projected to post its Q4 earnings at $0.61 per share on
revenue of $536.04 million. Kinder Morgan Energy
) is projected to post its Q4 earnings at $0.73 per share on
revenue of $3.34 billion.
At 8:30 a.m. ET the Producer price index is released along with
the Empire State manufacturing survey. At 2:00 p.m. the Beige Book
is released. Fed governor Charles Evans speaks at 12:50 p.m. and
Dennis Lockhart speaks at 5:20 p.m.
(c) 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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