European markets rallied as Mario Draghi, President of the ECB,
said that the ECB has no plans to alter its monetary policy. The
(INDEXDB:DAX) finished the day up 1.66%. Chinese money market rates
began to normalize again as the Chinese government made efforts to
control the liquidity squeeze.
The third estimate of US first-quarter GDP was unexpectedly revised
downward from 2.4% to 1.8% due to declines in personal consumption
and exports. Crude inventories rose by 18,000 barrels last week,
according to the EIA. Crude oil was $0.16 higher at the close of
Despite the negative macroeconomic news, US indices rallied
throughout the day. The
(INDEXSP:.INX) finished up 1.1%. All subsectors of the S&P were
positive today with health care, utilities, consumer discretionary,
and industrials in the lead with gains of more than 1.25%. Regional
financials also broke above recent highs as rising interest rates
show the greatest benefit to these banks. Larger investment banks
Goldman Sachs Group Inc
) lagged. The 10-year yield dropped 5 bps to 2.535%, despite the
very weak Treasury auction of $35 billion in 5-year notes. Gold
took another big hit, plunging 4% on the day.
General Mills, Inc.
) reported earnings this morning before market open. EPS came in on
par with expectations of $0.53. The $4.4 billion in revenue topped
the expected $4.3 billion. Shares dropped 0.5% on the news.
Tomorrow's Financial Outlook
Great Britain's GDP will be released at 4:30 a.m. EDT tomorrow
morning. EMU economic sentiment will be released at 5:00 a.m. EDT.
US jobless claims will be reported at 8:30 a.m. EDT. Initial weekly
claims are expected to come in at 345K. US personal income and
outlays will be released tomorrow at 8:30 a.m. EDT. Personal income
is expected to see month-over-month growth of 0.2%. Consumer
spending is expected to rise 0.4% over the same time period.
Pending home sales will be released at 10:00 a.m. EDT. Sales are
expected to have grown 1.0% over the past month.
ConAgra Foods, Inc.
) and Nike, Inc. (NKE) will be reporting earnings tomorrow.
Japanese CPI and household spending will be released at 7:30 p.m.