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Global Market Wrap

US Equities fluctuated, with the NASDAQ Composite booking a small gain, while the Dow Jones Industrial Average fell from its highest level since December, 2007. The bellwether indices, however, finished well above opening lows after a leading survey showed corporate America added fewer than-expected jobs last month ahead of the official report on Friday. The Dollar Index climbed for a third due, more so due to risk aversion, leaving June Gold offered as low as $1646/oz. Crude fell as domestic inventories reached a 21-year high. Natural Gas also slipped.

European Equities declined, with Italian and Spanish indices ditching more than two and half percent on abysmal regional employment data, while manufacturing activity contracted for a ninth consecutive month. Year Yields rose 8 basis points to 5.85 percent. Financials – Barclays (213.7p, -5.6%), Crédit Agricole (€3.77, -2.9%), Deutsche Bank (€32.06, -2.5%), UniCredit (€2.84, -5.7%) – subsequently lagged. UBS (CHF 11.75, +3.7%), however, rallied after attracting more funds from clients than expected, despite a 54 percent quarterly profit decline

Treasuries climbed as 10-Year Yields approached the lowest level in three months on a weaker ADP print and as risk markets deteriorated. The long-end and belly outpaced the curve, paring Tuesday’s slippage.

Materials declined, with Metals & Miners – Alcoa ($9.73, -2.4%), Cliffs Resources ($61.21, -1.1%), Freeport ($38.12, -0.9%), Newmont Mining ($47.10, -2.0%) – tracking Euro peers. Coal Producers – Alpha Natural Resources ($15.49, -5.4%), Consol Energy ($33.24, -2.5%), Peabody ($30.55, -3.3%) – tipped as Newcastle coal fell below $100/ton. Walter Energy ($63.92, -3.4%) reported disappointing earnings as demand for coal wanned. The third-largest US coal miner will now delay shipments

Financials lagged as Major Banks – Bank of America ($8.16, -1.8%), Citigroup ($32.70, -2.7%), JPMorgan Chase ($43.20, -1.4%), Wells Fargo ($33.57, -1.5%) – fell amid Euro worries. On the earnings front, Chesapeake Energy ($16.74, -14.6%) fell after unexpectedly posting a quarterly loss on weak natural gas prices. In Media, Comcast ($30.42, -0.6%) and Time Warner ($37.29, -1.7%) both reported earnings that beat estimates, though the latter announced some impairment charges

Global Market Wrap

US Equities advanced, with the Dow Jones Industrial Average closing at its highest level since December, 2007 after a report on the health of the manufacturing industry sliced past estimates ahead of Friday’s jobs report. Furthermore, former Fed Chairman Alan Greenspan said stocks ‘are very cheap’ and offer good value as earnings will likely continue to increase over time. The Dollar Index rose for a second day after Fed’s Plosser and Lacker both said the central bank may tighten ahead of its present order of late 2014. June Gold ended little changed at $1663/oz

European Union markets were closed out of respect for May Day.
British Equities bounced, with the FTSE 100 adding the most in two weeks after economic reports from China to North America exceeded estimates, restoring investor sentiment. Llloyds (33.6p, +8.3%) surged after reporting a pretax profit of £628 million, exceeding the consensus estimate of £422 million. Total impairments fell 36 percent, driven by its Australian and Irish units. Man Group (97.8p, -5.5%), however, slipped after the hedge fund manager said clients redeemed $4.1 billion in the first quarter. BP (441.3p, -0.8%) was little changed after reporting a 19 percent decline in first quarter earnings as asset sales lowered output.

Treasuries skidded, with the complex bearing the brunt of bright data on the economic front and calls from Fed policymakers to raise interest rates. The long-end sagged as the curve steepened amid thin volume.

ConocoPhillips ($56.61, +3.5%) jumped, driving upside in the Energy sector after spinning off refining business Phillips 66 ($32.76). Fellow Oil & Gas Producers – Anadarko ($75.06, +2.5%), Chevron ($108.27, +1.6%), Exxon Mobil ($87.04, +0.8%) – were also well bid June Crude rose above $106/bbl. In acquisition news, two private equity firms said they agreed to acquire Collective Brands ($21.16, +1.9%) for $2 billion.

Sears ($62.05, +15.4%) roared as it released positive guidance, while also confirming that it will spin some of its stores. GM ($23.31, +1.4%) and Ford ($11.23, -0.4%) both booked a single-digit percent decline in April vehicle sales, but were above estimates. Major Banks – Bank of America ($8.31, +2.5%), Citigroup ($33.60, +1.7%), JPMorgan Chase ($42.79, +1.9), Wells Fargo ($34.09, +2.0%) – enjoyed a relief bounce.

Global Market Wrap

US Equities declined, with the S&P 500 ending a four-month advance as a report showed that manufacturing activity in the Chicago area fell to its lowest level since the end of 2009, while Spain officially entered a double-dip recession. Hence, the bellwether indices gapped lower from the open, but did not deteriorate significantly throughout the session as bargain hunters were happy to support the market on modestly heavier volumes. The Dollar Index climbed for the first time in five sessions on fresh risk aversion, though June Gold managed to end above $1664/oz

European Equities deflated, with French, Italian and Spanish indices posting near two percent losses. Spanish 10-Year Yields lost 11 basis even as the state contracted 0.3 percent in the first quarter, but compared to some estimates was not as worse as feared. Financials – Barclays (218.3p, -2.2%), BNP Paribas (€30.35, -2.2%), Credit Suisse (CHF 21.71, -2.0%), Deutsche Bank (€32.87, -1.9%) – were all offered. tumbled as the miner missed profit estimates and suspended shafts. BHP Billiton (1974p, +0.4%) climbed.

Treasuries advanced, with a weaker Chicago PMI print supporting the complex into the close, though gains were limited as Uncle Sam issued quarterly borrowing estimates. The long-end and belly led the light rise.

Barnes & Noble ($20.75, +51.7%) roared by a record after Microsoft ($32.02, +0.1%) said it will invest $300 million in the bookstore chain’s digital businesses, leaving the latter with a 17.6 percent holding. Apple ($583.98, -3.2%) again tuned lower, dragging Tech Stocks into the red. acquisition news, Sunoco ($49.29, +20.5%) caught a $5.3 billion bid from Energy Transfer Partners ($49.63, +3.6%). Gen-Probe ($81.55, +18.9%) rallied after Hologic ($19.12, -9.9%) said it will buy the former for $3.75 billion to expand the X-Ray company’s diagnostic operations.

NYSE Euronext ($25.75, -4.9%) tipped after its profits fell by almost a third in the first quarter due to a difficult trading environment and costs related to its failed merger with Deutsche Boerse. Major Banks – BofA ($8.11, -1.7%), Citi ($33.04, -1.4%), JPMorgan ($42.98, -0.8%), Wells Fargo ($33.43, -1.0%) – followed European peers. Metals & Miners – Alcoa ($9.73, -0.2%), Freeport ($38.30, +0.5%) – saw gains and losses

Global Market Wrap

US Equities progressed, with the S&P 500 capping its best week in a month as a consumer confidence gauge reached its highest level since February last year, while corporate earnings continued to inspire. Thus far about 75 percent of S&P 500 companies who’ve reported earnings have topped analysts’ estimates. Traders paid little attention to figures showing the US economy grew at a weaker-than-expected 2.2 percent annual rate in the first quarter. The Dollar Index fell to its lowest level in nearly eight weeks, helping June Gold advance to as high as $1668/oz

European Equities rallied, with some of the regional indices booking gains for a fourth-straight session after corporate earnings outweighed slower-than-forecast US GDP growth. Vinci (€35.56, +4.2%), Europe’s biggest homebuilder, posted a 6 percent increase in earnings, beating estimates. Logitech (CHF 8.88, +7.3%) extended gains after rising the most since 2007 the previous day on its earnings. Nobel Biocare (CHF 11.15, +4.2%), the world’s second-biggest dental implant maker, rallied after its quarterly earnings rose 9.5 percent on North American growth.

Treasuries climbed, with the 10-Year contract reaching a record-high as European peripheral concerns, speculation that the Fed will kick-off new asset purchases and weaker US economic growth drew in buying.

Amazon.com ($226.85, +15.8%) jumped after beating analysts’ sales and profit estimates on strong demand for the Kindle and e-commerce services for outside vendors. Expedia ($40.31, +23.5%) also roared as the online travel agency beat forecasts thanks to an increase in global hotel revenues. On the downside, Procter & Gamble ($64.48, -3.6%) fell the most in more than two years after reducing guidance amid new regulations in Venezula and slowing shipments to developed markets.

Starbucks ($57.43, -5.3%) slipped the most in eight months as samestore sales trailed estimates due to weaker demand in Europe. Ford ($11.59, -2.4%) also lost ground after its earnings fell on year. Chevron ($106.20, unch) closed flat as better refining margins offset a decline in production. Materials – Alcoa ($9.75, -1.1%), Cliffs ($62.15, -2.2%), Freeport ($38.13, +1.0%) – were mixed, while Major Banks – Bank of America ($8.24, -0.4%), JPMorgan Chase ($43.34, -1.1%) – declined.

Global Market Wrap

US Equities climbed, with the S&P 500 capping its biggest three-day advance since February after renewed strength on the economic front propelled risk sentiment. Stock futures, however, slipped after the floor close as Standard & Poor’s cut Spain’s rating to ‘BBB+’ from ‘A’ with a negative outlook. The group said the state’s budget trajectory ‘will likely deteriorate against a background of economic contraction.’ The Dollar pared losses against the Euro on the news, though Gold remained bid over $1656/oz. Natural Gas rose as much as 5.8 percent before falling.
European Equities fluctuated, with British and German gauges rising at the expense of Italy and Spain. Hence, June Bunds enjoyed a relief rally after skidding the previous two sessions. Deutsche Bank ( 33.20, -2.8%) declined after its first-quarter profit fell 33 percent as a rebound in investment-banking revenue failed to offset a 257 million writedown tied to the sale of Actavis Group. Banco Santander ( 4.75, -3.4%) said its earnings fell 24 percent as souring loans crimped income in Spain. Barclays (213p, +1.0%) beat estimates on an investment bank rebound
Treasuries rallied, with the market rising for the first time in three days
as the Fed’s pledge to keep rates low through to 2014 pushed the yield
down to a record low 1.34 percent at the government’s 7-Year auction.
Amazon.com (After Hours $224.51, +14.4%) jumped after posting a quarterly profit well ahead of estimates, led by demand for Kindles and a rise in sales for outside vendors through its website. Starbucks (After Hours $57.83, -4.7%), however, declined after same-store sales were below estimates amid weaker demand in Europe. UPS ($78.25, -1.8%) posted results that grew on year, but still missed market expectations. PepsiCo ($66.37, -0.4%) reaffirmed its full-year outlook after posting a smaller than-expected decline in earnings on beverage price increases
Consol Energy ($33.21, -3.9%) sagged after posting net income of 42 cps compared to expectations of 58 cps. It also said it will restart idled Appalachian coal operations after renegotiating contracts for its coal at $119 per ton. Cliffs Natural Resources ($63.54, -5.3%) cut its forecasts for cash flow after posting revenue below estimates on weaker iron ore prices. Exxon Mobil ($86.07, -0.9%) also missed on profit expectations

Global Market Wrap

US Equities dropped, with the Dow Jones Industrial Average ditching as much as 183 points from the open, before the market spent the rest of the session in recovery mode. Hence, the bellwether indices finished far above intraday lows as bargain hunters stepped in on average flow. Morning selling was attributed to political uncertainty in France and the Netherlands which pushed European markets far lower. The US Dollar rallied against its trading partners, leaving June Gold offered as low as Natural Gas rose the most in 12 weeks.

European Equities tipped, with German, Italian and Swedish gauges all ditching at least three percent as Dutch Prime Minister Mark Ruttee offered to resign after struggling to clinch an austerity package, while Nicolas Sarkozy became the first incumbent since 1958 not to win the first round of the French election. Moreover, manufacturing contracted in the Euro zone at the worst pace in nearly 3 years. Materials – BHP Billiton (1898.5p, -3.6%), Rio Tinto (3376p, -4.8%) – fell sharply with Financials – Crédit Agricole (€3.57, -4.4%), Deutsche (€32.98, -4.4%). Vodafone (171p, -0.1%) agreed to buy Cable & Wireless (35p +12.2%)

Treasuries advanced, while German Bunds hit a Euro-era record, as risk markets destabilised prompting a flight to quality. A lack of data on the domestic front kept the focus on Europe. 10 Years hit 1.90 percent.

ConocoPhillips ($72.33, -0.8%) was little changed after first-quarter profit fell 3 percent, missing estimates, due to production declines and lower refining margins. ExxonMobil ($85.69, +0.5%) outperformed on a broker upgrade. Metals & Miners – Alcoa ($9.63, -0.7%), Cliffs Natural Resources ($65.99, -2.0%), Freeport ($37.16, -1.1%), United States Steel ($28.22, -2.7%) – were offered, but bounced off session lows. On the M&A front, Nestle will acquire Pfizer’s ($22.38, -0.8%) infant health unit for $11.85 billion. Netflix (after hours $85.95, -18.9%) on its results

Financials declined as Major Banks – Bank of America ($8.18, -2.1%) Citi ($33.25, -1.9%), JPMorgan ($42.85, +0.3%), Wells Fargo ($32.69, -0.9%) –reflected European woes. Apple ($571.70, -0.2%) fell below its 50-Day Moving Average for the first time in 4 months, but then ended just above the metric. Wal-Mart ($59.54, -4.7%) on bribery allegations.

Global Market Wrap

US Equities fluctuated, with the S&P 500 concluding a two-day losing streak at expense of the NASDAQ Composite on stronger volume due to April options expiry. Techs remain cautious as the S&P 500 climbed above its 50-Day Moving Average from the open, but for a second day ended below the widely watched technical metric. The Dollar Index fell as the Euro rallied on better-than-forecast German business sentiment, however, June Gold was only little changed at $1642/oz. Crude rallied a decade low.

European Equities rallied, with Germany’s XETRA DAX adding more than a percent after a state reading showed business sentiment gained unexpectedly to a nine-month high. Spanish 10-Year Yields climbed for a second-day, but pared gains after rising above 6 percent. Materials – Tinto (3547p, +1.0%), Xstrata (1167p +2.4%) – rallied as Copper, Lead and Nickel all rose at least a percent. Financials – Banco Santander (€4.75, +2.4%), BNP Paribas (€29.61, Deutsche (€34.48, +1.7%), Lloyds (30.1p, +2.8%) – also rose. the market ending little changed as a lack of domestic data sidelined most traders. 10-Years held at 1.96 percent.

Microsoft ($32.42, +4.6%) advanced, rising within 5 cents of hitting a four-year high after reporting earnings that topped estimates on betterthan- expected sales of Windows and Office software for businesses. The result helped prompt further rotation out of Apple ($572.90, -2.5%) which has ditched almost 12 percent from its April 10th record. SanDisk ($35.91, -11.3%) tumbled after the chipmaker said its memory chip glut will continue to affect prices. Rival Micron ($6.64, -5.2%) also slumped.

General Electric ($19.36, +1.2%) rose after first-quarter earnings beat
estimates, propelled by profit gains at its energy business, which offset
some weakness at GE Capital. McDonalds ($95.94, +0.7%) ended little
changed as its earnings met analysts’ forecasts. Commercial Banks –
Bank of America ($8.36, -4.7%), Citi ($33.89, -2.8%), JPMorgan Chase
($42.72, -1.2%), Wells Fargo ($33.00, -0.4%) – declined after analysts’
digested their results and in some cases sliced estimates. Deepwater
drilling demand buoyed Schlumberger’s ($71.70, +2.7%) profit result.

Global Market Wrap

US Equities retreated as disappointing economic data and Euro Zone worries weighed on the market. US Jobless Claims disappointed, rising to 386,000 from 386,000 in the previous survey. Similarly sales of previously owned US homes fell for the third time with purchases dropping 2.6 per cent to an annual 4.48 million in March. Leading indicators rose 0.3 per cent to 95.7, their highest level in nearly four years.

European Equities were sold off. The British FTSE was broadly flat, finishing little changed while the German DAX was nearly off a per cent, closing at 6671.22. Weaker debt auctions sent the French CAC down 2.05 per cent, while the Spanish IBEX saw a similar 2.42 per cent decline.

Treasuries rose as 10-Year yields traded below 2 per cent for the fifth day in a row. In Europe, Spanish and French yields rose at fresh bond auctions with Spain getting an average yield of 5.743 per cent compared to a previous auction in January while France sold debt at 1.83 per cent from 1.78 per cent in March.

Alcoa($9.76, -19.91%) led the Dow Jones Industrial Average down as the index pushed below the psychologically significant 13,000 mark. McDonalds ($95.28, -2.12%) was the other notable underperformer. Ebay ($4.75, +13.24%) surged after the company’s quarterly results topped estimates, resulting in numerous broker upgrades.

Bank of America ($8.77, -1.68%) declined despite postings earnings above expectations. Similarly, Verizon ($0.49, +1.3%), Du Pont ($52.61, -1.24%), and Travelers ($61.70, +3.75%) also reported earnings above expectations. Microsoft ($31.01, -0.42%), AMD ($7.97, unch), and Capital One ($53.93, -0.61%) are scheduled to report today.

Global Market Wrap

US Equities consolidated following the S&P 500’s biggest advance in five-weeks after several major profit reports failed to impress investors, while a lack of data on the economic front kept major accounts at bay. The Dollar Index finished on firmer ground, leaving June Gold offered as low as $1638/oz before the latter pared losses. The Euro was under pressure also ahead critical longer-dated Spanish auctions tonight, but Sterling rallied as Bank of England policy makers said inflation may be accelerate. May Crude fell to $102.67/bbl as weekly inventories spiked.

European Equities declined, with Span’s IBEX leading the way lower with a four percent loss after data showed non-performing loans for the state’s banks as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994. Financials – Banco Santander ( 4.81, -4.0%), Crédit Agricole ( 3.82, -4.4%), Lloyds (29.97p, -3.2%), sold. Magnitogorsk Iron & Steel (RUB 12.65, -2.1%) turned lower after the Russian steelmaker posted an annual loss of $120 million, its first in ten years as prices fell. Treasuries rallied, sending 10-Year Yields below 2 percent, as stock markets decoupled. The long-end bounced ahead of tonight’s even risk

IBM ($200.13, -3.5%) dropped, shaving 55 points off the Dow Jones Industrial Average, after the tech giant posted revenue that was below estimates despite raising guidance after earnings beat forecasts. Intel ($27.95, -1.8%) was also offered after the chip maker said expenses related to ramping up new production will now have a bigger impact on gross margins than earlier expected. eBay ($35.87, -0.6%) rallied more than 8 percent after the bell. The company ahead of analysts’ estimates, led by overseas growth in its PayPal unit.

American Express ($58.04, -0.2%) fell after hours even as it reported a 6.7 percent increase in first-quarter profit as customer spending rose lender posted the industry’s lowest default rates. Berkshire yesterday’s post market losses after
Warren Buffet said he has prostate cancer. Halliburton ($34.17, +4.6%) after its profits jumped as hydraulic-fracturing demand surged. Genworth ($5.87, -23.8%) fell after delaying the IPO of its Aussie unit.

Global Market Wrap

US Equities roared, with the S&P 500 rising the most in five-weeks as the IMF raised its global growth forecasts for the first time in more than a year, while Spain auctioned more than its maximum target of 12- and respectable bid-to-cover ratios. The Canadian Dollar rallied against trading partners after Bank of Canada policy maker said higher borrowing costs ‘may become appropriate’ as economic growth will be faster than it earlier forecast. June Gold  settled little changed at $1650/oz after earlier skidding to $1635/oz on rotation into risk markets

European Equities surged, with French, Italian and Spanish gauges adding at least two percent after German investor confidence hit a twoyear high, while the IMF raised its Euro-area growth forecasts. 10-Year Spanish yields fell 20 basis points after selling 3.18 billion euros of bills compared with a max target of 3 billion. Demand for the 18-month bills rose to 3.77 times the amount sold from 2.93 last time. Regional Banks – Barclays (220.55p, +4.6%), Deutsche Bank ( 35.37, +4.5%), Société Générale ( 18.57, +8.6%), UniCredit ( 3.24, +7.2%) – jumped sharply.

Treasuries declined, though the complex remained relatively well bid considering the rally in risk markets. A weaker-than-expected industrial production and housing starts limited losses in the belly and long-end.

Berkshire Hathaway ($80.76, +1.4%) slipped as much as 4.1 percent after the bell as Warren Buffet said he has been diagnosed with stage one prostate cancer that is “not remotely life threatening.” He will begin a two-month treatment of daily radiation in July. IBM ($207.45, +2.3%) fell as much as 2.7 percent after hours. The giant raised guidance after a 7.1 percent rise in first-quarter earnings, but sales trailed estimates. Intel ($28.47, +0.2%) fell after hours as its sales forecast disappointed.

Goldman Sachs ($116.86, -0.7%) declined after the fifth-biggest US bank by assets said profits fell 23 percent as trading revenues lagged behind Citi ($35.08, +3.2%) and JPMorgan ($43.90, +1.3%). Bank of America ($8.92. +1.5%) will file its quarterly before-market tomorrow. Materials – Alcoa ($9.99, +1.3%), Cliffs Resources ($70.37, +1.6%), DuPont ($53.40, +1.3%), Newmont ($48.33, +0.3%), US Steel ($29.21, +3.1%) were bid. Freeport ($37.76, +2.3%) rallied on takeover chatter.