Major US stock indexes rose on Monday, recovering after a decline the previous session amid China's steps to stimulate its slowing economy, as well as in connection with positive corporate reports corporations.
Thus, a decision support index was Bank of China, which reduced the required reserves of commercial banks by 100 basis points to 18.5%. In this case, Agricultural Bank of China was allowed to reduce the reserve requirement ratio by 200 basis points. Vacant as a result of measures taken means banks will have to submit to increase liquidity and lending of various industries in the country.
Among the few today macroeconomic news is to provide that in the eurozone construction output fell for the first time in three months in February. As reported on Monday by Eurostat, the volume of construction fell by 1.8% in February from January, when they rose by 1.6%. It was the first decline in three months, and the biggest drop since September.
Prices for WTI oil futures rose today, while reaching the highest level this year amid speculation that growth stocks is beginning to slow.
According to the company Genscape Inc., crude oil inventories in Cushing rose less than 500 thousand. Barrels last week, which is considerably less than the increase that is observed in recent months. In Genscape also reported that in the second half of last week, stocks fell in Cushing. Recall, US Energy Information Administration will release official data on stocks of petroleum products in the environment.
Almost all components of the index DOW closed in positive territory (26 of 30). Outsider shares were General Electric Company (GE, -0.70%). Shares rose more than the rest International Business Machines Corporation (IBM, + 3.46%).
All sectors of the S & P closed in the positive zone. Most of the technology sector increased (+ 1.5%).
At the time of closing:
Dow + 1.17% 18,034.93 +208.63
Nasdaq + 1.27% 4,994.60 +62.78
S & P + 0.92% 2,100.40 +19.22
Major U.S. indexes rose on Monday, reversing much of the previous session's decline, as China's steps to stimulate its slowing economy and as earnings lured money back into equities.
China's central bank on Sunday reduced the amount of cash that banks must hold as reserves in a move to help spur bank lending and combat slowing growth.
Almost all of the Dow stocks are trading in positive area (28 of 30). Top looser - American Express Company (AXP,-0.30%). Top gainer -Microsoft Corporation (MSFT, +2.84%).
S&P index sectors are moving up. Top gainer - Utilities (+1.5%).
At the moment:
Dow 17973.00 +203.00 +1.14%
S&P 500 2095.00 +19.50 +0.94%
Nasdaq 100 4404.25 +55.25 +1.27%
10-year yield 1.88% +0.03
Oil 57.87 +0.55 +0.96%
Gold 1194.10 -9.00 -0.75%
Stock indices closed higher on further stimulus by China's central bank. The People's Bank of China (PBOC) announced on Sunday that it lowered the amount of cash that banks must hold as reserves. The government hopes to spur bank lending and combat slowing growth. The central bank cut the reserve requirement ratio for all banks by 100 basis points to 18.5%. The cut is effective from April 20. The reserve requirement ratio will be lowered by another percentage point for rural banks, two additional percentage points for the central bank's Agricultural Development Bank, and a further 0.5% for banks lending to agriculture and small businesses.
Concerns over Greece's debt problems are still in focus. Greece is still running out of cash, and it needs a new tranche of loans. The Greek government hopes to unblock a new tranche of loans at the Eurogroup meeting on April 24. Germany's Finance Minister Wolfgang Schäuble said last week that he did not expect that a solution will be found on April 24.
The European Central Bank Governing Council Member Ewald Nowotny said in an interview to CNBC on Monday that he does not expect an agreement between Greece and its creditors will be signed this week. He added that the Greek exit from the Eurozone would not have the same impact on the Eurozone as it would have had two years ago.
The Bundesbank released its monthly report on Monday. The central bank said that strong private consumption will be a driver of the economic growth in Germany. "The exceptionally good environment for consumption, based on the solid state of the labour market and strong growth in real wages point to this development continuing for some time," the Bundesbank noted.
Indexes on the close:
Name Price Change Change %
FTSE 100 7,052.13 +57.50 +0.82 %
DAX 11,891.91 +203.21 +1.74 %
CAC 40 5,187.59 +44.33 +0.86 %
The Reserve Bank of Australia (RBA) Governor Glenn Stevens said in New York on Monday that the central bank is ready to cut its interest rate if it would be helpful in securing sustainable economic growth.
Stevens noted that the Australian dollar will decline further.
The Federal Reserve Bank of New York President William C. Dudley said on Monday that he hopes that the Fed will hike its interest rate this year.
The Federal Reserve Bank of New York president noted that long-term interest rate target could be 3.5%.
Dudley is a voting member of the Federal Open Market Committee.
According to a report in the financial news magazine Caixin, the People's Bank of China will inject more than $60 billion of foreign exchange reserves into two state-owned policy banks to support the government's overseas development plans. China's central bank will inject $32 billion into China Development Bank and $30 billion into Export-Import Bank of China.
According to Chinese news, China will launch three new free-trade zones on Tuesday. The free-trade zones will be opened in Guangdong and Fujian provinces in the south and the northern port of Tianjin. Each free-trade zone will cover around 120 sq km.
The Bank of Canada (BoC) Governor Stephen Poloz said in an interview with The Wall Street Journal on Sunday that the further interest rate cut by the BoC is not needed.
"We've got the right monetary policy," Poloz noted.
The BoC governor described a shock January interest rate cut as "insurance".
Poloz also said that demand in machinery equipment and building materials from the U.S. increased.
The European Central Bank (ECB) President Mario Draghi said in the central bank's 2014 annual report that the economic growth in the Eurozone will become more robust and that inflation will return to the central bank's 2% target "without undue delay".
(company / ticker / price / change, % / volume)
Pfizer Inc | PFE | 35.09 | +0.14% | 3.6K |
Microsoft Corp | MSFT | 41.70 | +0.20% | 14.9K |
Google Inc. | GOOG | 525.44 | +0.27% | 0.9K |
AT&T Inc | T | 32.60 | +0.28% | 40.5K |
McDonald's Corp | MCD | 95.16 | +0.30% | 1.2K |
Exxon Mobil Corp | XOM | 87.24 | +0.36% | 7.3K |
Cisco Systems Inc | CSCO | 28.02 | +0.38% | 6.0K |
Citigroup Inc., NYSE | C | 53.27 | +0.38% | 20.4K |
Chevron Corp | CVX | 109.55 | +0.40% | 0.8K |
General Electric Co | GE | 27.37 | +0.44% | 62.2K |
Intel Corp | INTC | 32.62 | +0.46% | 4.3K |
AMERICAN INTERNATIONAL GROUP | AIG | 57.70 | +0.47% | 61.8K |
American Express Co | AXP | 77.70 | +0.49% | 0.9K |
The Coca-Cola Co | KO | 40.51 | +0.52% | 5.2K |
Verizon Communications Inc | VZ | 49.16 | +0.53% | 2.1K |
Wal-Mart Stores Inc | WMT | 78.30 | +0.54% | 2.1K |
Ford Motor Co. | F | 15.85 | +0.57% | 30.2K |
ALCOA INC. | AA | 13.54 | +0.59% | 65.8K |
Apple Inc. | AAPL | 125.48 | +0.59% | 306.0K |
Starbucks Corporation, NASDAQ | SBUX | 47.91 | +0.61% | 10.5K |
Johnson & Johnson | JNJ | 100.21 | +0.63% | 8.2K |
Yahoo! Inc., NASDAQ | YHOO | 44.75 | +0.67% | 9.5K |
Visa | V | 64.96 | +0.68% | 3.3K |
Procter & Gamble Co | PG | 83.10 | +0.69% | 4.2K |
Nike | NKE | 99.24 | +0.70% | 0.9K |
3M Co | MMM | 162.90 | +0.74% | 0.2K |
E. I. du Pont de Nemours and Co | DD | 72.08 | +0.74% | 0.4K |
Walt Disney Co | DIS | 107.50 | +0.76% | 3.1K |
Caterpillar Inc | CAT | 83.92 | +0.77% | 1.7K |
International Business Machines Co... | IBM | 161.90 | +0.77% | 8.2K |
Twitter, Inc., NYSE | TWTR | 51.05 | +0.77% | 46.5K |
Goldman Sachs | GS | 198.88 | +0.78% | 0.4K |
United Technologies Corp | UTX | 116.02 | +0.79% | 0.8K |
Home Depot Inc | HD | 113.00 | +0.80% | 1.8K |
General Motors Company, NYSE | GM | 36.94 | +0.82% | 6.1K |
JPMorgan Chase and Co | JPM | 63.36 | +0.83% | 8.2K |
Amazon.com Inc., NASDAQ | AMZN | 378.83 | +0.87% | 10.8K |
UnitedHealth Group Inc | UNH | 119.80 | +0.92% | 0.9K |
Boeing Co | BA | 151.00 | +0.94% | 0.9K |
Facebook, Inc. | FB | 81.65 | +1.08% | 128.0K |
Merck & Co Inc | MRK | 57.50 | +1.09% | 9.4K |
Deere & Company, NYSE | DE | 87.51 | 0.00% | 0.1K |
HONEYWELL INTERNATIONAL INC. | HON | 101.70 | 0.00% | 0.2K |
Freeport-McMoRan Copper & Gold Inc., NYSE | FCX | 20.64 | -0.15% | 24.9K |
Tesla Motors, Inc., NASDAQ | TSLA | 206.40 | -0.19% | 47.1K |
Barrick Gold Corporation, NYSE | ABX | 12.66 | -0.78% | 11.3K |
Yandex N.V., NASDAQ | YNDX | 20.11 | -2.33% | 19.5K |
U.S. stock-index futures rose after China's central bank cut lenders' reserve requirements and Morgan Stanley earnings topped forecasts.
Global markets:
Nikkei 19,634.49 -18.39 -0.09%
Hang Seng 27,094.93 -558.19 -2.02%
Shanghai Composite 4,218.12 -69.18 -1.61%
FTSE 7,036.56 +41.93 +0.60%
CAC 5,164.98 +21.72 +0.42%
DAX 11,873.94 +185.24 +1.58%
Crude oil $55.28 (-0.83%)
Gold $1197.20 (-0.48%)
The European Central Bank Governing Council Member Ewald Nowotny said in an interview to CNBC on Monday that he does not expect an agreement between Greece and its creditors will be signed this week. He added that the Greek exit from the Eurozone would not have the same impact on the Eurozone as it would have had two years ago.
Nowotny pointed out that a lower euro is not the target of the central bank's quantitative easing.
Upgrades:
Downgrades:
Other:
Amazon.com (AMZN) reiterated at Neutral at Wedbush, target raised from $330 to $395
Tesla Motors (TSLA) reiterated at Underweight at JP Morgan, target lowered from $175 to $165
The Bundesbank released its monthly report on Monday. The central bank said that strong private consumption will be a driver of the economic growth in Germany.
"The exceptionally good environment for consumption, based on the solid state of the labour market and strong growth in real wages point to this development continuing for some time," the Bundesbank noted.
The central bank pointed out that the industrial data was disappointing for the second month in a row, but the economy continued to grow.
April 20
After the Close:
IBM (IBM). Consensus EPS $2.83, Consensus Revenue $19678.10 mln.
April 21
Before the Open:
Verizon (VZ). Consensus EPS $0.95, Consensus Revenue $32263.44 mln.
United Tech (UTX). Consensus EPS $1.46, Consensus Revenue $14868.16 mln.
DuPont (DD). Consensus EPS $1.31, Consensus Revenue $9386.30 mln.
Travelers (TRV). Consensus EPS $2.53, Consensus Revenue $6003.84 mln.
After the Close:
Yahoo! (YHOO). Consensus EPS $0.18, Consensus Revenue $1054.22 mln.
April 22
Before the Open:
Boeing (BA). Consensus EPS $1.83, Consensus Revenue $22558.28 mln.
Coca-Cola (KO). Consensus EPS $0.43, Consensus Revenue $10712.90 mln.
McDonald's (MCD). Consensus EPS $1.07, Consensus Revenue $5972.13 mln.
After the Close:
AT&T (T). Consensus EPS $0.66, Consensus Revenue $33155.23 mln.
Facebook (FB). Consensus EPS $0.41, Consensus Revenue $3561.27 mln.
April 23
Before the Open:
General Motors (GM). Consensus EPS $0.96, Consensus Revenue $36674.27 mln.
Procter & Gamble (PG). Consensus EPS $0.92, Consensus Revenue $18419.57 mln.
Caterpillar (CAT). Consensus EPS $1.36, Consensus Revenue $12600.73 mln.
PepsiCo (PEP). Consensus EPS $0.79, Consensus Revenue $12196.46 mln.
3M (MMM). Consensus EPS $1.93, Consensus Revenue $7830.75 mln.
After the Close:
Amazon.com (AMZN). Consensus EPS $-0.13, Consensus Revenue $22402.65 mln.
Microsoft (MSFT). Consensus EPS $0.53, Consensus Revenue $21045.97 mln.
Google (GOOG). Consensus EPS $6.61, Consensus Revenue $17504.90 mln.
Starbucks (SBUX). Consensus EPS $0.33, Consensus Revenue $4530.86 mln.
The People's Bank of China (PBOC) announced on Sunday that it lowered the amount of cash that banks must hold as reserves. The government hopes to spur bank lending and combat slowing growth. The central bank cut the reserve requirement ratio for all banks by 100 basis points to 18.5%.
The cut is effective from April 20.
The reserve requirement ratio will be lowered by another percentage point for rural banks, two additional percentage points for the central bank's Agricultural Development Bank, and a further 0.5% for banks lending to agriculture and small businesses.
Stock indices traded higher on further stimulus by China's central bank. The People's Bank of China (PBOC) announced on Sunday that it lowered the amount of cash that banks must hold as reserves. The government hopes to spur bank lending and combat slowing growth. The central bank cut the reserve requirement ratio for all banks by 100 basis points to 18.5%. The cut is effective from April 20. The reserve requirement ratio will be lowered by another percentage point for rural banks, two additional percentage points for the central bank's Agricultural Development Bank, and a further 0.5% for banks lending to agriculture and small businesses.
The Greek debt problem continue to weigh on markets. The country is still running out of cash, and it needs a new tranche of loans. The Greek government hopes to unblock a new tranche of loans at the Eurogroup meeting on April 24. Germany's Finance Minister Wolfgang Schäuble said last week that he did not expect that a solution will be found on April 24.
Current figures:
Name Price Change Change %
FTSE 100 7,033.49 +38.86 +0.56 %
DAX 11,808.4 +119.70 +1.02 %
CAC 40 5,158.86 +15.60 +0.30 %
The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to 95.9 in April from a final reading of 93.0 in March, exceeding expectations for an increase to 93.8.
The Surveys of Consumers chief economist at the University of Michigan Richard Curtin said that "the cumulative improvement in a broad range of economic assessments are now comparable to the peak levels recorded in the mid 2000's".
A gauge of consumers' current economic conditions climbed to 108.2 in April from 105.0 in March.
The index of consumer expectations increased to 88.0 from 85.3.
The one-year inflation expectations in April declined to 2.5% from 3.0% in March.
The Conference Board released its leading economic index for the U.S. on Friday. The leading economic index climbed by 0.2% in March, missing expectations a 0.3% gain, after a 0.1% increase in February.
February's figure was revised down from 0.2% rise.
Lower building permits, average working hours and manufacturing new orders weighed on the index.
The Conference Board economist Ataman Ozyildirim said that the leading economic index "still points to a moderate expansion in economic activity", but the slower pace over recent months "suggests weaker growth may be ahead".
Asian stock markets were mostly lower Monday after the Chinese central bank's move to stimulate the economy underlined fears it is slowing too rapidly. China's central bank on Sunday cut the required reserve ratio for banks by 1 percentage point to stimulate lending into a slowing economy. The lower reserve requirement allows banks to lend out a higher proportion of their deposits. The Communist Party-run People's Daily said the cut will release 1.2 trillion yuan ($194 billion) into the world's second-biggest economy. Official data showed last week that China's economy grew by 7 percent in the first quarter of the year, the lowest quarterly expansion since the 2008 financial crisis.
HANG SENG 26,965.52 -687.60 -2.49%
S&P CNX NIFT 8,537.6 -68.40 -0.79%
S&P/ASX 200 5,833.1 -44.77 -0.76%
TOPIX 1,582.68 -6.01 -0.38%
SHANGHAI COMP 4,209.02 -78.28 -1.83%
(index / closing price / change items /% change)
Nikkei 225 19,652.88 -232.89 -1.17 %
Hang Seng 27,653.12 -86.59 -0.31 %
S&P/ASX 200 5,877.87 -69.60 -1.17 %
Shanghai Composite 4,288.35 +93.53 +2.23 %
FTSE 100 6,994.63 -65.82 -0.93 %
CAC 40 5,143.26 -81.23 -1.55 %
Xetra DAX 11,688.7 -310.16 -2.58 %
S&P 500 2,081.18 -23.81 -1.13 %
NASDAQ Composite 4,931.81 -75.98 -1.52 %
Dow Jones 17,826.3 -279.47 -1.54 %