(As of 7:20 am PST)
Markets are flat this morning
despite a positive kick off to earnings season from aluminum-producer, Alcoa. The bellwether company reported better than
expected earnings after the bell yesterday, with profits rising 59%. Revenues came in near the lower end of
expectations which kept the stock from soaring.
Many analysts expect this to be the trend for Q1 earnings, with
corporate guidance, particularly revenue outlooks, dictating the market direction. In other corporate news today, JCPenney CEO
Ron Johnson stepped down from his post after a year-and-a-half at the
struggling retailer while former CEO Mike Ullman will take back over as chief
executive. JCPenney shares are down 10%
on the news. On the international front,
European stocks are mostly higher and Asian markets finished up. China inflation cooled, easing market
concerns of policy tightening. Lower
inflation allows pro-growth stimulus measures to continue in one of the world’s
largest economies. Gold is up slightly
while oil prices are slipping. Interest
rates are lower with the 10 yr. treasury yield at 1.73% and the average 30 yr.
mortgage rate at 3.56%. Today’s data
calendar is light but expect activity to pick up as the week progresses as
retail sales and consumer sentiment cap the week.
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