·
China GDP
positive for market…….China reported its first quarter GDP rose 7.4%
year-over-year compared with expected increase of 7.3%. Market response is
positive and provides some relief over concerns of a significant slowing in
China’s economy. Because of its enormous size, trends in Chinese economy have
an outsized impact on the financial markets. Link: http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140416&id=17500759
·
Earnings
beats today……A number of prominent companies, notably in legacy tech,
reported better than expected earnings today. We also note several significant
dividend increase announcements. Both are providing some lift for the market
this morning. Dividend increases are an excellent indicator of company
management’s confidence in the outlook for their businesses and cash flows. Link: http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140416&id=17528132
·
Industrial
production improving……Federal Reserve reports this morning that industrial
production rose 0.7% in March, better than expected. This adds to recent
positive economic data such as retail sales, and indicates economic growth is
accelerating from its weather-induced stall in 1Q, and supports our positive
view for improving economy and corporate earnings growth this year….positive
for stocks. Link: http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140416&id=17529893
·
Groundbreaking
for new single-family homes….surged 6% in March, with multi-family
declining 3%. Applications for new home purchases also rose significantly.
There has been much talk of an emerging slowdown in the housing market but, as
has been the case for this entire economic recovery, 1) housing will probably
improve in an uneven pattern, and 2) there is a lot of pent up demand due to
significant underbuilding in 2008-2013. Link: http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140416&id=17529893
·
Yellen
comments having positive impact…..Federal Reserve Chief Janet Yellen made
comments today that while economy is making progress on job creation there is
still a long way to go. The implication is Fed policy will continue to remain
accommodative and buttresses investor sentiment regarding Fed policy, which is
positive for financial assets, such as stocks. Link: http://money.msn.com/business-news/article.aspx?feed=AP&date=20140416&id=17531322
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