Corporate Earnings Supporting Stocks Against Geopolitical Risks

Posted on Posted in Views From The Hill
Market Commentary

Corporate earnings continue to drive the equity markets against a backdrop of unresolved geopolitical concerns in Gaza (Middle East Israeli-Palestinian conflict) and the Ukraine (Eastern Europe pro-Russian separatists vs. sovereignty of Ukraine).

Out of the 16 S&P 500 companies which reported earnings resutls after the close of yesterday’s trading, 12 of them exceeded consensus estimates. Amongst the more notable positive surprises was Apple (AAPL) @ 97.19 (+2.47 / 2.61%) while Microsoft (MSFT) @ 44.8 (+0.04 / +0.09%) missed its numbers. Before today’s market open, 14 out of 17 S&P 500 companies delivered better than expected profits, e.g. Biogen Idec (BIIB) @ 337.60 (+33.93 / +11.17%), Boeing (BA) @ 126.71 (-3.03 / -2.34%), and EMC Corp (EMC) @ 28.75 (+0.23% / +0.81%).

Overall, the market remains quite resilient. The S&P 500 @ 1987.01 (+3.48 / +0.18%) and Nasdaq 100 @ 3986.19 (+24.57 / +0.62%) indexes both made new highs today while the relative strength on the Dow Jones 30 Industrials @ 17086.63 (-26.91 / -0.16%) has yet to yield much significant ground and it remains within striking distance of its all time high. The Russell 2000 index @ 1158.11 (+1.95 / +0.17%), which represents small-cap stocks, has made a bullish reversal of its short-term downtrend by recently reclaiming the support of its 50-day moving average and is incrementally closing the gap between its 20-day moving average with 4 consecutive days of positive accelerating momentum.

Today’s economic calendar was void of any major events. Crude Oil Inventories had a drawdown of -4mm bbl vs. previous week’s report @ -7.5mm bbl and reflect the underlying strength of consumer and industrial sectors of the economy as refineries are operating @ 93.8% capacity. On the housing front, MBA Purchase Applications, which showed a year-over-year decline of -15%, edged only +0.3% higher vs. previous weekly readings, thus signalling some weakness in underlying home sales.

Signing off at Hillbent.com…

(See Market Performance Tables below)

Key Exchange Traded Funds’ Market Performance Tables
ETF Equities Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
SPDR DOW 30 ETF (DIA) 170.56 -0.18 -0.11% 2,619 -41% -33%
SPDR S&P 500 ETF (SPY) 198.64 0.44 0.22% 69,572 -26% -14%
Powershares QQQ (QQQ) 97.23 0.62 0.64% 29,021 -12% -3%
Russell 2000 ETF (IWM) 114.87 0.14 0.12% 26,418 -34% -37%
S&P Europe 350 Index (IEV) 47.86 0.05 0.10% 1,393 78% 64%
Europe ETF FTSE Vang (VGK) 59.08 0.09 0.15% 2,175 -45% -31%
Emrg Mkts Index MSCI (EEM) 44.76 0.04 0.09% 30,412 -39% -26%
 
ETF Volatility Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
VIX Short-Term Futur (VXX) 28.18 0.24 0.86% 25,916 -37% -5%
 
ETF Sectors Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
Consumer Discret Sel (XLY) 67.42 -0.05 -0.07% 5,389 19% 15%
Consumer Staples Sel (XLP) 44.85 -0.06 -0.13% 2,797 -55% -50%
Energy Select Sector (XLE) 100.49 0.64 0.64% 7,744 -6% -4%
Financial Select Sec (XLF) 22.97 0.05 0.22% 14,318 -26% -42%
Healthcare Select (XLV) 62.19 0.5 0.81% 7,265 10% 34%
Industrial Select (XLI) 54.19 -0.22 -0.40% 7,924 -10% 4%
Materials Select Sec (XLB) 50.08 0.21 0.42% 2,270 -44% -48%
Technology Select (XLK) 39.8 0.07 0.18% 5,473 2% -7%
DJ US Telecom Ishare (IYZ) 30.33 0.01 0.03% 97 -51% -59%
Utilities Select Sec (XLU) 42.65 0.04 0.09% 7,497 21% -31%
 
ETF Bonds Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
Aggregate Bond Ishar (AGG) 109.46 0.02 0.02% 752 1% -27%
1-3 Year Treasury (SHY) 84.51 0.03 0.04% 486 -76% -38%
7-10 Yr Trsy Ishares (IEF) 103.92 -0.01 -0.01% 528 -15% -82%
20+ Year Trsy Bond (TLT) 115.18 -0.15 -0.13% 3,546 -46% -52%
Tips Bond Ishares (TIP) 115.38 -0.01 -0.01% 427 -8% -13%
SPDR High Yield Bond (JNK) 41.28 0.13 0.32% 4,003 -11% 25%
Iboxx $ High Yield (HYG) 94.03 0.18 0.19% 2,039 -39% -34%
 
ETF Currency/Cash Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
DB US Dollar Index (UUP) 21.55 0.01 0.05% 2,368 43% 209%
Euro Trust (FXE) 132.78 -0.06 -0.05% 280 7% -6%
Japanese Yen Trust (FXY) 95.99 -0.06 -0.06% 33 -8% -53%
 
ETF Commodities Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
DB Commodity Index (DBC) 25.62 0.07 0.27% 582 -52% -70%
SPDR Gold (GLD) 125.62 -0.12 -0.10% 3,117 -45% -50%
US Oil (USO) 38.16 0.21 0.55% 2,257 -34% -13%
 
ETF Real Estate Close Chg %Chg Vol x 1000 5-Avg Vol % Chg 50-Day Avg Vol % Chg
DJ US Real Estate (IYR) 73.33 0.16 0.22% 6,151 -11% -29%
DJ US Home Construct (ITB) 24.21 0.26 1.09% 5,287 38% 59%
 

 

 

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