(As of 7:30 am pacific)
US stocks play tug of war to start the session with the
Dow Jones Industrial Average opening flat then surging 40 points then reversing
down 50 all within the first hour of trading. The Labor Dept. reported this
morning that US jobless claims for the week ending April 14th
remained near a 4 month high. After a
surprise spike in jobless claims 2 weeks ago, analysts expected a decline for
last week. Jobless claims totaled
386,000, down slightly from an upward revised 388,000 2 weeks ago. Economists expected claims to fall to
374,000. The 4 week average for claims
rose by 5,500 to 374,750 the highest its been since January. Earnings reports continue to come in with the
market liking what it sees so far for Q1 2012.
Bank of America reported profits and revenue that were lower, but beat
estimates, and shares rose 2%. Morgan
Stanley also beat estimates and Verizon Communications posted strong
earnings. According to a report from Bloomberg,
the Bloomberg Consumer Comfort index improved last week equaling a high from 2
weeks ago that was the best it’s been since March 2008. In Europe, stocks were mixed as markets
pondered how to respond to a Spanish bond auction that took place earlier
today. Yields (borrowing costs) on 10
yr. Spanish bonds climbed in the auction where Spain sold 2.54 billion euros of
2 yr. and 10 yr. debt. In Asia, markets
were mixed with Japanese stocks declining the most, while Hong Kong and
Australia rose. Oil prices slipped 0.5%
to 102.10 while gold added 0.40% to 1646.
The US dollar was mixed and the 10 yr. treasury yield fell slightly to
1.96%. 30 yr. mortgage rates remained
near all time lows at 3.88%. The CBOE
volatility index was down 0.75% to 18.50 at 7:30 am pacific.
