Posted on April - 15 - 2011

Mixed News Flow May Create Some Uncertainty

- The major U.S. index futures are pointing to a lower opening on Friday, with sentiment likely to cautious amid the release of some lackluster earnings reports. On the global economic front, China reported an uptick in inflation and the euro zone’s inflation rate for March was also upwardly revised. The euro has been under pressure on the back of some negative headlines on Ireland. Crude oil futures are seeing modest weakness.

Meanwhile, manufacturing data from the U.S. continue to be upbeat. A report released by the New York Fed showed that manufacturing conditions in the New York region improved notably in April. That data has served to allay some of the negativity. Sentiment over the course of the session may also hinge on the industrial production data and also the Fed speeches.

U.S. stocks managed to end on a narrowly mixed note on Thursday against the backdrop of negative global cues and an insipid domestic jobs report. The major averages opened lower and dipped further in early trading only to gradually pare back their losses over the course of the session. The averages moved into positive territory in late trading before showing divergence and closing on a mixed note.

The Dow Industrials ended up 14.16 points or 0.12 percent at 12,285 and the S&P 500 Index edged up 0.11 points to 1,315, while the Nasdaq Composite Index closed at 2,760, down 1.30 points or 0.05 percent.

Seventeen of the thirty Dow components closed higher, while one closed unchanged and the remaining twelve stocks retreated. J.P. Morgan Chase (JPM) (down 2.77 percent), Intel (INTC) (down 1.01 percent), Hewlett-Packard (HPQ) (1.87 percent), Disney (DIS) (down 1.63 percent) and Bank of America (BAC) (down 1.06 percent) were among the biggest decliners. On the other hand, Chevron (CVX), Kraft Foods (KFT), Coca-Cola (KO) and Merck (MRK) rose sharply.

Among the sector indexes, the NYSE Arca Airline Index and the KBW Bank Index fell about 1 percent each. Meanwhile, the NYSE Arca Biotechnology Index gained 1.13 percent compared to a 1.45 percent advance by the NYSE Arca Disk Drive Index.

On the economic front, the initial claims for unemployment benefits rose by 27,000 to 412,000 in the week ended April 9th. The Labor Department attributed the spike to the quarter-end volatility. Production cuts in Japan in the aftermath of the natural calamity there, which has led to parts shortage, may also have had a role to play. The four-week average rose to 395,750 from the previous week’s 390,250, while continuing claims calculated with a week’s lag fell 58,000 to 3.68 million in the week ended April 2nd.

Similar Posts:

Share
No Comments
Read More

Post a comment