
[Chart courtesy of MarketWatch.com]
1. Moving the Markets
Equities fell as investors look ahead to a busy week of earnings and economic data. The stock market is coming off its second straight week of gains, and its next move will be determined largely by what corporate CEOs say about the earnings outlook for the rest of 2015.
Remember that a sluggish winter, dropping oil prices and a rising dollar have taken their toll on the economy and earnings in the quarter of 2015. Wall Street is expecting the S&P 500 to post its first contraction in quarterly earnings in almost six years when first-quarter profit reports are all tallied up.
We heard great news from the credit ratings industry today. Fitch Ratings – one of the largest providers of credit ratings for debt – affirmed the AAA rating for the USA Monday. The rating is extremely important with bond investors, who aren’t just concerned about a creditor’s current financial situation, but more importantly, how it looks in the future.
We will see a notable amount of earnings this week. In banking, Wells Fargo (WFC) and JPMorgan Chase (JPM) will start things off on Tuesday. A few techs have reported March-quarter results, but the season really kicks off with Intel (INTC) after the market close Tuesday. The No. 1 chipmaker is expected to post EPS of 41 cents, up 8% and revenue is expected to inch up 1% to $12.9 billion.
And in international news, we saw data today that showed trade in China shrank more than expected in March, with imports down 12.7% from a year earlier and exports falling 15%. The numbers fueled concern that economic data due out Wednesday will show overall growth fell further in the first three months of 2015 after declining to 7.3% in the final quarter of last year.
Only 1 of our 10 ETFs in the Spotlight, namely IYF, managed to buck the trend by adding +0.23%; all others ended up in the red with DVY showing the most weakness with a -0.66% loss.
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