Share This Story
U.S. Market Update
U.S. Market Update
DJIA -137 NASDAQ -30 S&P500 -14 - The DJIA posted triple-digit losses at
the open this morning after GE reported a 5.8% decline in Q1 EPS, falling far
short of expectations, a result that Credit Suisse called "shocking."
GE, considered one of the most reliable earners on the market, said losses were
mostly seen in its financial services division, which has been hit by the
ongoing credit crisis. GE -9%
- TXT said that it expects Q1 EPS to exceed its previously forecasted range of
$0.75-0.85/shr, noting that strong performance in other businesses is more than
offsetting slightly weaker than forecasted earnings at its finance segment. TXT
was up in early trading, but has been seen off its highest levels.
- Worse than expected sales results for Genentech‚Äôs top drugs are leading the
biotech sector lower today, after big gains in that group yesterday. Analysts
at Thomas Weisel cut the name this morning on concern over sales of anti-cancer
- AMR cancelled another 595 flights on Friday as it continued inspection of
MD-80 jetliners. The airline said that 170 MD-80s would be available for
service on Friday morning. In other airline news, Frontier Airlines filed for
bankruptcy protection overnight.
- Commodities dipped this morning as global slowdown woes provided an excuse
for recent profit-taking ahead of the weekend. Front month gold futures fell as
much as $10, crude futures are down less than 1%.
- In currencies, the market was expecting a subdued tone ahead of the weekend
G7 meeting in Washington DC. However, the lower guidance provided by
GE sent the USD broadly lower among the majors and instilled a degree of risk
aversion back into the carry-related pairs. EUR/USD tested the 1.5850 area
before being somewhat soothed by comments from European officials. ECB
ultra-hawk Weber stated that there was "no room" for the ECB to lower
rates at this time, but added an uncharacteristic dovish tone that perhaps
inflation peaked in March. The German finance minister noted that the EUR/USD
at $1.60 level "massively impacts" Europe's economic interests.
- Today's US data release foreshadowed potential
problems stemming from the Fed's recent policy decisions as inflationary
components are flashing ‚Äúcaution‚ÄĚ signals despite a slowing US economy. The April preliminary University of Michigan confidence survey was 63.2 v 69.0e, its
lowest reading since the early 1980s. Meanwhile, the one-year inflation
expectation was hit 4.8%, its highest reading since 1990.
- Looking ahead to the G7 summit, currency dealers are waiting to see whether
G7 members are serious about recent dollar weakness and euro strength. However,
it is more likely that the G7 will agree that the Chinese yuan needs to rise.
In the event of any surprises at the G7, a statement along the lines of EU
protests at too-strong euro could increase the short-term volatility, although
the G7 says that disorderly, excessive FX moves are certainly not welcome.
- In the European equity and fixed income markets, the aftermath of the GE earnings
miss was fast and furious on price action. European equities moved from
moderately positive territory to session lows of down 2%. Safe haven flows into
bonds helped to push yields lower and future prices higher.
- June bunds up 100 ticks at 115.90; June Gilts firmer by 49 ticks at 110.67
- Euro Stoxx 50 off 1.3% at 3,708, FTSE down 1% at 5,908, CAC 40 index lower by
1.1% at 4,805 and the DAX down 1.4% at 6,613
Legal disclaimer and risk disclosure
All information provided by Trade The News (a
product of Trade The News, Inc. "referred to as TTN hereafter") is
for informational purposes only. Information provided is not meant as investment
advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed
reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete
2. Information can be mistakenly re-released or be
delayed, 3. Information may be incorrect, misread,
misinterpreted or misunderstood 4. Human error is a business risk you are
willing to assume 5. Technology can crash or be interrupted without notice 6.
Trading decisions are the responsibility of traders, not those providing
additional information. Trade The News is not liable
(financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities
involves a high degree of risk, and financial losses can and do occur on a
regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."