(As of 6:54 am pacific time)
Stocks rallied back on Wednesday after the worst day of
the year for the markets had the Dow falling 213 points Tuesday. Stocks took back have of yesterday’s losses
to start as earnings season gets underway.
Alcoa kicked it off with surprising profits that beat analysts
estimates. The aluminum-maker reported
Q1 net income of $94 million, or 9 cents/share on 6 billion in revenue. Analysts expected a loss of 3 cents/share on
5.77 billion. In economic news, the US
government reported import prices rose 1.3% in March, pointing to rising oil
prices as the main contributor. Also due
out later today is the Fed’s Beige Book, a report put out by the Fed 8 times a
year with information on the economic condition of the US. It is put out just ahead of each Federal Open
Market Committee meeting. In Europe, Germany sold 3.87 billion euros of 10 yr.
government bunds in auction that produced a record low yield of 1.77%. Italy also met its target in a similar bond
auction today. Spanish bond yields were
driven lower as a member of the executive board of the European Central Bank
reportedly said that the ECB still has the option to help reduce Spain’s
borrowing costs by restarting its bond-buying program. Oil rose 0.65% to 101.68 and gold opened flat
at 1660.20. The US dollar was down
against most currencies across the board.
30 yr. mortgage rates drifted lower to 3.89%. 10 yr. treasury yields added back 5 basis
points to 2.03%. The CBOE volatility
index was down 5.64% to 19.24.
