Foreign Markets
European markets rose on the better than expected quarter results from Goldman Sachs, which sent financials soaring. In Europe, the FTSE 100 index of leading British shares was up 49.21 points, or 1.2 %, at 4,032.92 while Germany’s DAX rose 75.65 points, or 1.7 %, to 4,566.77. The CAC-40 in France was 48.99 points, or 1.7 %, higher at 3,023.17.
In Asia, the Hang Seng closed 678.75 points, or 4.6 %, higher at 15,580.16. In Japan, the automakers controlled trading, and uncertainty over GM drove the Nikkei 225 stock average down 81.75 points, or 0.9 %, to 8,842.68.
U.S. Futures
Ahead of the opening bell on Wall Street, futures are mixed with little action in either direction. Dow Jones industrial average futures rose 15, or 0.19 %, to 8,010. Standard & Poor’s 500 index futures fell 2.60, or 0.30 %, to 851.40, while Nasdaq 100 index futures are rose 3.00, or 0.23 %, to 1,335.00. The market will get a barrage of economic data to analyze and digest, alongside Johnson and Johnson’s (JNJ) earnings release.
After falling out of the open and being down as much as 1.3%, the blue chips rallied throughout the trading day, briefly turning positive. Led by financials, the Dow Jones industrial average fell only 25.57 points, or 0.32 %, to 8,057.81. The Standard & Poor’s 500 Index gained 2.17 points, or 0.25 %, to 858.73. The Nasdaq Composite Index rose just 0.77 of a point, or 0.05 %, to 1,653.31.
Currencies and Commodities
The dollar traded at 99.835 yen, falling 0.2632% in the currency market. The euro depreciated 0.668% to $1.328 as the ECB signaled the bank may have to continue easing monetary policy beyond next month to quell deflation risks, while the pound appreciated 0.4877% to $1.4927. Gold rose $1 to $896.80 an ounce, however may rise further if equities in the U.S. turn negative. Silver lost 0.96% to $12.64. Investors bought up treasuries, with the yield rising to dropping 7 basis points to 2.85% on the 10 year note. Light, sweet crude for May delivery rose 1.14% to $50.62 a barrel on the solid news from the financial sector.
Corporate News
Goldman Sachs (GS) preannounced earnings in afterhours. The newly converted bank holding company earned $3.39 per share, surpassing analysts’ forecasts for profit of $1.64 per share. In the quarter of 2008, GS had earnings of $1.47 billion, or $3.23 per share. Goldman’s total revenue was $11.88 billion during the quarter, compared with $18.63 billion in the prior-year quarter. Analysts forecast revenue of $7.19 billion. In addition, the company expects to issue $5 billion in a public stock offering to repay the TARP money it had received last fall.
Rating agency Standard & Poor’s raised its ratings for Ford Motor Co. (F) to “CCC+” from “SD-,” citing the results of the automaker’s recent debt swap. However, the outlook on the company remains negative with the fate of GM and Chrysler up in the air.
Economic News
7:45 AM
ICSC-Goldman Store Sales: Weekly measure of comparable store sales at major retail chains, published by the International Council of Shopping Centers. The figure accounts for roughly 10% of total retail sales.
8:30 AM
Retail Sales: measure the total receipts at stores that sell durable and nondurable goods. Consumer spending accounts for two-thirds of GDP and is therefore a key element in economic growth. The consensus is for a 0.3% increase in the month of March as we face higher gasoline prices. That figure is up from a decrease of 0.1% in February. The consensus range falls as low as -0.2%. and upwards of 0.9%.
8:30 AM
Producer Price Index: The PPI is a measure of the average price level for a fixed basket of capital and consumer goods received by producers. This is a great indicator of the future CPI as producers will eventually pass the costs onto the consumer. The consensus for the month of March was for an increase of 0.1%, with a 0.1% increase excluding food and energy. These figures are on par with February’s PPI reading.
10:00 AM
Business Inventories: The dollar amount of inventories held by manufacturers, wholesalers, and retailers. The consensus is for a drop in February of 1.0% as businesses stockpile less to match the weary consumer. In January, inventories fell by 1.1%.; particularly by auto dealers who cut inventories by 4.4%.
.
Share This Article
