Wednesday, April 8, 2015

Economic Journal - Wednesday, 4/8/2015


(As of 7:30 am PST)

It’s a quiet day on Wall Street Wednesday as investors looked ahead to the release of the most recent Federal Open Market Committees’ (FOMC) meeting minutes for clues on the timing of the Fed’s first rate hike. Today also kicks off the unofficial start to Q1 earnings season with former Dow component, Alcoa set to announce earnings after the bell. There are a lot of nerves heading into this particular earnings season as the strengthening dollar and the drop in oil prices have pinched the balance sheets of many companies, especially multinationals in the past several months. According to last week’s FactSet report, the year-over-year EPS forecast for the S&P500 in Q1 is projected to decline by -4.6%, the first quarterly decline since Q3 2012. Across the pond, things are not much better, however markets continue to march higher. European stocks set a record earlier today as news of an energy deal between Royal Dutch Shell PLC and BG Group PLC paced gains. Asian markets also were higher with the Hong Kong Exchange closing at its highest level since December 2007. While volatility has been kept under control recently, expect it to pick up in the coming weeks as earnings season kicks into full swing.

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