Stocks rallied nicely early in the day, but turned downward in
the afternoon on news that the German Bundesbank rejected the OMT
bond purchasing program out of risk concerns.
The morning joy came on some better-than-expected data as Initial
Jobless Claims for last week came in at 339K beating expectations
of 355K. Continuing claims were also better-than-expected at
In stock news, semiconductor play
) fell sharply following yesterday afternoon's disappointing
earnings report, while widely-watched storage stock
) spiked on impressive guidance. But overall, earnings season has
continued to shape up as mixed at best with misses today from the
After the close,
) reported its first-quarter numbers, beating expectations on the
earnings line but missing slightly on revenues. Guidance was also a
big light relative to expectations, but the stock nonetheless
rallied in extended trading.
Overall though, even with the afternoon slump, there were some
bright spots. For example, small cap stocks outperformed by a wide
margin, and we saw rebounds in oil and precious metals, with silver
being a particularly strong performer. Financials were also up
pretty solidly, and housing stocks were extremely strong, even in
the face of fairly weak economic data as of late.
(AAPL) was also up as traders slowly embrace the former market
leader following Tuesday's mixed earnings report.
On Friday at 8:30 a.m. EDT, we'll see the advance GDP report for
Q1, with the April University of Michigan Consumer Sentiment report
following at 9:55 a.m. In earnings, the calendar is pretty stacked
for tomorrow morning. Key names reporting include
On the plus side, expectations seem fairly low, and thus far
investors have been forgiving of companies meeting earnings
expectations through cost cuts instead of strong demand. However,
tension on the tape seems quite high, so volatility is likely par
for the course in the near term, especially if concerns over Europe
return to the forefront of investor thinking.