US markets rallied in late trade on back of better than expected earnings from JPMorgan, Google. Jobless claims fell for second week. Dow Jones ends up 96 points or 1.2% at 8125, Nasdaq ends up 44 points or 2.7% at 1671 and S&P 500 ends up 13.2 points or 1.5% at 865. Nasdaq outperformed on back of Google results, HP gain as US PC shipments dropped at a slower rate than the rest of the world.Asian markets opens in the green. Nikkei 225 was up over 2%, Straits Times, Hang Seng were up 1.5%, Taiwan Weighted, Kospi were up 1%, Shanghai Composite was down 1%. In Europe, FTSE was up 2.1%, DAX was up 0.5% and CAC was up 1.7%. CBOE VIX ends down 1% at 35.79.
Global movers & shakers:
JPMorgan was up 2%, company’s 1Q net profit stood down 10% at $ 2.14 billion or 40 cents/sh against expectation of 32 cents/sh. The company sets aside $ 10 billion against credit losses. Google ends up 2.4%. The results of the company declared post market closing, 1Q profit was up 9% at $ 1.42 billion or $ 4.49/sh, added $ 2 billion in cash. Tech stock gain, in which Dell was up 6.6%, Apple was up 3.2% and Microsoft was up 5%. Nokia ends up 11%, its 1Q net profit falls 90% but stock moves higher as company delivered a positive outlook for the second half.
US economic news:
Initial jobless claims fell for second straight week to 610,000. Continuing claims climbed more than expected to a new record of 6.02 million. Housing starts dropped 10.8% in March after a 17.2% rise in February. Foreclosures jumps 46% in March as mortgage companies’ moratoriums came to an end.
Global news:
There are reports that Japanese steelmakers had agreed with Toyota to cut steel prices by more than 10%. European banks gained yesterday, in which Lloyds, Barclay were up 8%, Deutsche Bank was up 6%, AIG was up 5.5%.
Commodities:
Crude oil ends up 1.4% at $ 49.95/bbl. Gold prices dropped 1.5% at $ 880/bbl. Silver prices fell 4.3% at $ 12.26/ounce. Baltic Dry Index was up 4.5%, rose for a fourth day, climbed to the highest since March 31. Copper trades at 1 week lows, down 2% at $ 4729/ton.
Currencies:
Dollar appreciates 50 bps Vs euro at 1.315. Yen depreciates 35 bps against USD at 99.5.
Data to watch:
Ben Bernanke Speaks
US Consumer Sentiment
Update on General Motors’ restructuring
Results: Citigroup, General Electric
Citigroup: Q1 Consensus EPS at -$ 0.36 Vs actual -$ 1.02
General Electric: Q1 Consensus EPS at $ 0.210 Vs actual $ 0.440
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