U.S. equity futures (/ES) are slightly lower as the market will most likely try to reverse and extend its latest winning streak. The parade of earnings reports is continuing, as a huge number of companies will report their results today and tomorrow. The domestic economic calendar will be light today, as the only significant economic data scheduled to be released are a report on new home sales and the weekly Department of Energy inventory reports. Option volatility continued its downward spiral yesterday, albeit with small losses. The CBOE Volatility Index (VIX) is at $13.25 and is once again approaching its support level near $12. We should expect the ‘Fear Gauge’ to bounce off this level again as stocks trend back towards all-time highs.
Bonds are modestly higher this morning as equities are off slightly. The 10-year yield is near 2.72% but remains low despite the six-day rally in stocks. Stocks are lower in Europe despite an as expected gain in China's flash PMI and better than expected Euro-zone PMIs. Declines in the latter's price components were worrisome for some market-watchers and Australian CPI was a little below forecast. In the U.S. today, earnings announcements headline with a heavy slate including Apple (AAPL) and Facebook (FB) due after the close. The MBA reported mortgage applications fell 3.3% this past week. The Treasury also auctions $35 B in 5-year notes, the second leg of this week's 3-pronged offerings. One thing to keep an eye on is the tension in Ukraine as many market-watchers have discounted the potential downside catalyst as something that will blow over quickly.
Stock Stories:
Boeing (BA) – Flying higher – The aircraft-maker posts better than expected quarterly results on both the top and bottom lines. The company also raises FY14 core EPS numbers on the back of a tax settlement. The shares are up 2% this morning ahead of the opening bell.
Yum Brands (YUM) – Junk Food – The fast food conglomerate post better than anticipated EPS numbers last night but missed on Revenue for the quarter. The company’s SSS for Taco Bell were surprisingly down but a bigger than expected jump in China sales offset this. The stock is up 3% in the pre-market despite the mediocre results.
Major Economic Reports:
6:00 am CT – MBA Purchase Applications – down 3.3% for week
8:45 am CT – PMI Mfg. Index Flash
9:00 am CT – New Home Sales
9:30 am CT – Oil Inventories
12:00 pm CT – 5-year Note Auction Results
Notable Earnings:
Before Market: AMTD, ARMH, BA, BIIB, BCC, EAT, DAL, DOW, EMC, GD, IR, JCI, LO, NSC, NOC, PG, RAI, TDY
Any prediction for Apple?
BTW, why is AT&T losing? Is it a buying opportunity?作者: 沁颍 时间: 2014-4-23 11:32
Facebook is reporting Wednesday -- expectations are high
Facebook is reporting earnings Wednesday after the close, and expectations for the company remain high. The consensus earnings estimate for the quarter is $0.24, but estimates have been increasing. For the full year, analysts are expecting $1.19, according to Morningstar, which implies a price-to-earnings ratio of 53. This seems high considering the massive market cap at $160 billion.
Adobe's Social Media report implies a strong quarter
However, if the Adobe report is correct, the stock could have room to run. Some of the key findings that Facebook investors might be interested in include click-through rates that are up 160% year-over year, ad clicks up 70% year-over-year, and a 75% market share for retail site referrals. Adobe began publishing the social media report in the third quarter of 2013 based on its internal compilation of marketing statistics that it puts together for thought leadership.
