S&P500, +0.10%, 2,907.97 
Nasdaq, +0.31%, 7,713.49
Nikkei Futures, +0.25%, 22,253.0    

S&P 500 increased 0.1% on Monday, supported by strength in energy stocks amid a noticeable increase in oil prices ($65.65, +1.62, +2.5%).

Kimberly-Clark (KMB 130.25, +6.70, +5.4%) and Halliburton (HAL 31.09, -0.04, -0.1%) were some of the more notable companies to report earnings on Monday. Shares of Kimberly-Clark climbed 5.4% after the company beat top and bottom-line estimates. Halliburton beat revenue estimates, but the stock was unable to rise alongside the broader energy space.

In other corporate news, Boeing (BA 375.17, -4.90, -1.3%) and Tesla (TSLA 262.75, -10.51, -3.9%) were subject to some negative attention on Monday. The New York Times suggested Boeing’s South Carolina factory, which produces its 787 Dreamliner, fostered a culture that valued “production speed over quality.” Separately, a Chinese surveillance video depicted a parked Tesla vehicle appearing to catch fire and explode. TSLA was also downgraded to Underperform from In-line at Evercore ISI.

CURRENCY MARKET WRAP  

As of Fri, Apr 20, Singapore Time zone UTC+8

Dollar Index, +0.47%, $97.47                    
USDJPY, -0.08%, $111.97                    
EURUSD, -0.58%, $1.1231            
GBPUSD, -0.37%, $1.2998            
USDCAD, +0.26%, $1.3376        
AUDUSD, -0.39%, $0.7151    
NZDUSD, -0.67%, $0.6683    

On Thursday, U.S. Treasuries finished on a higher note, pushing yields lower across the curve. The 2-yr yield declined two basis points to 2.38%, and the 10-yr yield declined three basis points to 2.56%. The U.S. Dollar Index rose 0.47% to 97.46. WTI crude increased 0.4% to $64.03/bbl.

U.S. Total retail sales in March increased 1.6% (consensus +0.9%). Sales strength was broad-based with nice gains seen across discretionary spending categories. This data will compute well in the calculation of the goods component for personal consumption expenditures in the Q1 GDP report. Initial claims for the week ending April 13 decreased by 5,000 to 192,000 (consensus 208,000). Continuing claims for the week ending April 6 decreased by 63,000 to 1.653 million.

STOCK MARKET WRAP 

S&P500, +0.16%, 2,905.03
Nasdaq, +0.12%, 7,689.72
Nikkei Futures, -0.72%, 22,110.0                    

S&P 500 increased 0.16% on Thursday to close out the holiday-shortened trading week. Leadership from the industrials sector (+1.1%) and a turnaround in the health care sector (+0.1%) contributed to the upside bias, as most sectors finished little changed.

In IPO news, Zoom Video Communications (ZM 62.00, +26.00, +72.2%, 15.90B) and Pinterest (PINS 24.40, +5.40, +28.4%, 10.1B) made their public debuts on Thursday. Zoom opened at $65.00 after pricing at $36.00, and Pinterest opened at $23.75 after pricing at $19.00.

S&P500, -0.23%, 2,900.45    
Nasdaq, +0.34%, 7,680.72    
Nikkei Futures, +0.24%, 22,273.0          

The S&P 500 declined 0.23% on Wednesday in a mixed trading session. Pronounced weakness in the S&P 500 health care sector (-2.9%) counteracted positive economic data and earnings reports, thwarting an early attempt from the benchmark index to re-test its all-time high.

Stocks began the day modestly higher following better-than-expected GDP data out of China and earnings beats from many widely-held companies. The overall response, however, was muted likely due to the sense that much of the good news had already been priced in. An afternoon report from the Wall Street Journal indicating that the U.S. and China plan to continue another round of trade talks at the end of the month also produced little reaction.

United Continental (UAL 89.24, +4.07, +4.8%), CSX Corp. (CSX 78.94, +3.05, +4.0%), and KC Southern (KSU 122.81, +4.82, +4.1%) were some of the transport companies that released solid earnings results. PepsiCo (PEP 127.01, +4.60, +3.8%), Netflix (NFLX 354.74, -4.72, -1.3%), and Morgan Stanley (MS 48.26, +1.24, +2.6%) also beat earnings estimates, but Netflix also guided Q2 EPS below consensus. Shares of Qualcomm (QCOM 79.08, +8.63, +12.3%) received follow-through buying interest after the company settled a licensing dispute with Apple (AAPL 203.13, +3.88, +2.0%) yesterday. Intel (INTC 58.56, +1.85, +3.3%) followed up with an announcement that it will drop out of the 5G smartphone modem business.

S&P500, +0.05%, 2,907.06
Nasdaq, +0.34%, 7,654.73
Nikkei Futures, +0.35%, 22,257.5   

S&P 500 increased 0.05% on Tuesday, as strong performances from the financial and semiconductor stocks offset pronounced weakness in the healthcare and real estate spaces. The benchmark index traded with modest gains throughout the day and briefly dipped into negative territory with 30 minutes left of trading where it found buying interest at the 2900 level.

The S&P 500 financial sector (+1.4%) was the day’s outright leader following earnings beats from Bank of America (BAC 29.88, +0.04, +0.1%), BlackRock (BLK 466.54, +14.68, +3.3%), and Progressive (PGR 77.26, +5.00, +6.9%). BAC had declined as much as 2.8% intraday after the company missed revenue estimates and warned of a slowdown in net interest income in FY19. The turnaround in shares helped strengthen the sector’s performance.

The Philadelphia Semiconductor Index (+3.2%) was another area of strength during the day, and many of its components helped lift the S&P 500 information technology sector (+0.5%). The group received a late-session boost following news that Apple (AAPL 199.25, +0.02, unch) and Qualcomm (QCOM 70.45, +13.27, +23.2%) settled their royalty dispute for a currently undisclosed amount. Prior to the news, shares of Qualcomm were little changed and finished 23.2% higher after the news.

S&P500, -0.06%, 2,905.58
Nasdaq, +0.01%, 7,629.12
Nikkei Futures, +0.20%, 22,138.0            

S&P 500 declined 0.06% on Monday, as shares of financial stocks pulled back following another round of bank earnings. Despite the modest decline, the S&P 500 managed to close above the 2900 level in front of several key earnings reports later today. The market’s overall decline was kept in check following a turnaround in shares of widely-held stocks within the communication services (+0.2%) and consumer discretionary (+0.2%) sectors. Relative strength from the consumer staples (+0.7%) and health care (+0.4%) sectors was an added measure of support for the broader market.

Goldman Sachs (GS 199.91, -7.93, -3.8%) and Citigroup (C 67.38, -0.04, -0.1%) beat earnings expectations, but first quarter revenue for both companies declined on a year-over-year basis. Goldman’s revenue also came in slightly below expectations, and the quality of its EPS beat was questioned due to lower tax and compensation rates. The S&P 500 financial sector lost 0.6%.

As of Sat, Apr 13, Singapore Time zone UTC +8

Dollar Index -0.22%, $96.97
USDJPY, +0.32%, $112.03
EURUSD, +0.44%, $1.1302
GBPUSD, +0.21%, $1.3083
USDCAD, -0.48%, $1.3322
AUDUSD, +0.69%, $0.7173
NZDUSD, +0.51%, $0.6762

U.S. Treasuries were under selling pressure, which drove yields noticeably higher. The 2-yr yield increased four basis points to 2.39%, and the 10-yr yield increased six basis points to 2.56%. The U.S. Dollar Index lost 0.22% to 96.97. WTI crude increased 0.4% to $63.91/bbl.

There’s been talk about recessions, trade tensions between the EU and US are escalating and still no final resolution to US-China trade talks or Brexit. Yet investors retain a healthy risk appetite because bank earnings are strong and that policy accommodation abroad will help mitigate a deep slowdown in global growth.

In Brexit on Friday, the United Kingdom missed its second Brexit deadline. By accepting the European Union’s offer to remain until October 31, Theresa May all but guaranteed that the UK, which voted to leave the EU nearly three years ago, will participate in the European parliamentary elections next month.

S&P500, +0.66%, 2,907.41
Nasdaq, +0.44%, 7,628.15
Nikkei Futures, +0.88%, 21,860.0

S&P 500 gained 0.66% on Friday, as a strong earnings report from JPMorgan Chase (JPM 111.21, +4.98, +4.7%) and a buoyant response to Walt Disney’s (DIS 130.06, +13.46, +11.5%) upcoming streaming service helped offset losses from the health care stocks. DIS was resumed with an Overweight rating at JP Morgan with a price target of $137. The announcement and the overwhelmingly positive response contributed to a 4.5% decline in Netflix (NFLX 351.14, -16.51). Friday’s advance also helped the benchmark index close above the 2900 level for the first time since early October.

JPMorgan kicked off the first quarter earnings-reporting season with record revenue and net income, fueling broad-based gains in the S&P 500 financial sector (+1.9%). Wells Fargo (WFC 46.49, -1.25, -2.6%) and PNC Financial Services (PNC 132.70, +3.98, +3.1%) also provided better-than-expected results, but Wells Fargo lowering its outlook for FY19 net interest income sent shares lower.

As of Fri, Apr 12, Singapore Time zone UTC +8

Dollar Index +0.20%, $97.15
USDJPY, +0.56%, $111.64
EURUSD, -0.12%, $1.1260
GBPUSD, -0.28%, $1.3055
USDCAD, +0.41%, $1.3376
AUDUSD, -0.71%, $0.7122
NZDUSD, -0.61%, $0.6725

U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased four basis points to 2.35%, and the 10-yr yield increased three basis points to 2.50%. The U.S. Dollar Index increased 0.2% to 97.16. WTI crude fell 1.4% to $63.65/bbl.

U.S. Producer Price Index for final demand increased 0.6% in March (consensus +0.3%), bolstered predominately by a pickup in energy prices. There won’t be any alarming read through at this juncture for market participants who are cognizant that the Consumer Price Index for March showed a moderation in the year-over-year increase for core CPI (2.0% from 2.1% in February. This moderation helped strengthen the Fed’s stance to keep a patient mindset, which further increase the appeal for risk assets).

Central bankers aren’t as optimistic as contradictory views dominate yesterday’s Fed speak. Fed Vice Chair Clarida says the labor market is healthy and the economy is in a good place – a view shared by Fed President Williams. Fed President Bullard on the other hand thinks the March hike marked the end of policy normalization and favors removing the word “patient” from the policy statement because it suggests a tightening bias.

S&P500, +0.00%, 2,888.32
Nasdaq, -0.22%, 7,594.89
Nikkei Futures, +0.47%, 21,803.0

The stock market finished little changed on Thursday in a tight-ranged trading session. The S&P 500 (unch) finished fractionally higher, as relative strength from financial and industrial stocks helped mitigate losses from shares of healthcare companies in front of earnings season.

There was no specific driver for the noticeable decline in the S&P 500 health care sector (-1.2%). The broad-based selling in the group could have been a move to reduce exposure from the year’s worst-performing sector. Heavyweight UnitedHealth (UNH 235.42, -10.61, -4.3%) and many of the components within the iShares NASDAQ Biotechnology ETF (IBB 111.90, -1.94, -1.7%) led the space lower.
The financial sector (+0.6%), meanwhile, exhibited strength in front of earnings reports from JPMorgan Chase (JPM 106.23, +0.89, +0.8%) and Wells Fargo (WFC 47.74, -0.05, -0.1%) tomorrow.

In other corporate news, Tesla (TSLA 268.42, -7.64, -2.8%) and Panasonic suspended plans to expand Tesla’s Gigafactory in Nevada; Bed Bath & Beyond (BBBY 17.71, -1.70, -8.8%) disappointed investors with its earnings report; and Caesar Entertainment (CZR 9.40, +0.35, +3.9%) is reportedly interested in selling itself.