Following early volatility on the back of conflicting economic
data reports, the
(INDEXSP:.INX) finished modestly lower on the day.
In early-morning trading, US futures were slightly down, indicating
low expectations heading into the advance first-quarter GDP report.
The caution was warranted as GDP expanded by 2.5%, which was well
below the 2.8% consensus.
Then at 9:55 a.m., the April University of Michigan Sentiment
Survey was released. Interestingly enough, stocks rose and the
(INDEXCBOE:VIX) fell just before the above-consensus 76.4 numbers.
But the positivity didn't last as the GDP numbers, as well what has
been a relatively mediocre earnings season, loomed large in
) was a notable decliner today following its earnings report on
Thursday. After an initial reaction that saw the stock trade as
high as $290.88 yesterday afternoon, the company's tepid revenue
guidance shut the party down and the stock fell 7% on Friday.
Among today's batch of earnings reports, we saw beats from
), but misses from
Elsewhere, we saw a sharp rally in
(JCP) on news that George Soros took a large stake in the
struggling retailer, while
(FB) powered higher on an analyst upgrade.
The cautious tone among stock traders extended to the bond market,
as the US 10-year Treasury Yield fell throughout the day.
(For fixed-income guru Peter Tchir's take on the US Treasury
Market, we highly recommend watching a replay of our recent
Monday's Financial Outlook
On Monday, we have some important economic data points on the
calendar, with the Personal Income, Personal Spending, and PCE
Price coming at 8:30 a.m. EDT. At 10:00 a.m., we'll see the March
Pending Home Sales report.
Earnings season will also steam along on Monday. Notable names
(PAG) before the open, and
(HLF) after the close.
Given the recent streak of mixed economic and earnings data, we
would suspect that expectations are fairly low heading into next
week. Nonetheless, many market participants are desperately waiting
for a catalyst for a pullback, so at least some caution is probably