17 Apr ANOTHER MIXED DAY
Posted at 13:27h
in Market Commentary
Equities were again mixed as a group of high profile earnings offered disparate clues on the strength of the economy. Treasuries continued to slump with rates falling to levels last seen before the Fed’s dovish tilt a month ago. Oil advanced about 0.6% as OPEC is seen at risk of over tightening.
After the close, the first of the FAANG companies posted results. Netflix’s earnings exceeded expectations but their subscriber forecast trails estimates. Moreover the company lowered its second quarter earnings by 45%. The question at hand is this a one off event or a harbinger of things to come? The answer to this question can be pivotal in determining the intermediate direction of equities.
IBM also posted disappointing results after the close thus suggesting that both new and old tech may have cyclical issues.
What will happen today?
Last night the foreign markets were mixed London was down 0.08%, Paris up 0.28% and Frankfurt up 0.32%. China was up 0.29%, Japan up 0.25% and Hang Sang down 0.02%.
The Dow should open nominally higher on positive Chinese data.; Oil continued its advance on a drop in inventories.; The 10-year is off 4/32 to yield 2.61%.
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