Week of April 15th – April 19th:
Dow: 14,865 (-2.1% last week, +11.0% YTD)
S&P 500: 1,589 (-2.1% last week, +9.0% YTD)
Links Worth Snacking On:
- Chart of the Week - Gold by the numbers
- New Yorker - 6 conspiracy theories about why the price of gold is dropping
- Wall Street Oasis - 7 tips for 1st year analysts
- Bloomberg - 12 must-know images about the growing US domestic oil industry
- Wall Street Journal - Forget gold, the gourmet cupcake market is crashing (sorry, Crumbs)
- DealBreaker - Why are there penguins and otters running around the New York Stock Exchange trading floor?
- Businessweek - Chipotle’s earnings are banking on a fancy new margarita drink
- The Economist - An economic look at the market for soccer players
Someone stick us with an EpiPen before we overdose on earnings reports. Wall Street suffered major market swings all week long as the 1st quarter earnings season kicked into high gear with some marquee corporate headlines.
#1. Gold Took A Pounding
After doubling to over $1,500 an ounce over the financial crisis, the price of gold plummeted 9% last Monday for its biggest single-day drop since 1983 (Michael Jackson was black then). Why? Econ data showed China’s economy is slowing, which could equal less demand. And with stocks rallying, investors are preferring riding the stock market. Either way, gold got punched in its pretty, little gut.
#2. Stock Winners…
Salsa, anyone? Growth in Latin American demand helped Coca-Cola earnings surge. Johnson & Johnson checked-in with a healthy quarterly performance thanks to some new “sponge-worthy” medication launches (#GreatSeinfeldReference). And a jump in ad revenues boosted Google as their new Chromebook operating system gets more street cred. Plus SeaWorld lept like a young Free Willy on its IPO.
#3. …Stock Losers
EBay lost bidders (psychologically and literally) as the economic slowdown in Europe weighed on international sales. Over on Wall Street, huge drops in trading revenues hurt Morgan Stanley‘s performance last quarter, while low interest rates resulted in less cash for Bank of America. Plus Apple took a hit on pre-earnings report rumors that last quarter wasn’t up to “Jobs” standards.
#4. The Fed’s Beige Book Was “Glass-Half Full”
Congratulations on the “moderately improving.” That’s how the Federal Reserve graded the US economy again in its “Beige Book” report. Investors don’t have super low expectations, but they were pleased – the Fed governors vowed to keep their stimulus pledges until unemployment finally falls from 7.7% to 6.5%. Stimulus is always a good time.
#5. Another Mixed Bag of Econ Data
Hey, you can’t win them all. While housing starts jumped 7% last month for its best annualized rate of home construction in 8 years, manufacturing data didn’t bring its A-game. The Fed’s regional “business activity” reports in the NY and Philly areas showed industrial production in both areas wasn’t running all cylinders at the end of the winter.
What MarketSnacks Is Checking Out This Week:
- Monday - 1st Quarter Earnings Reports: Caterpillar, Six Flags Entertainment…
- Tuesday - March New Home Sales, Earnings: Apple, Delta Airlines…
- Wednesday - March Durable Goods Orders, Earnings: Ford, Zynga…
- Thursday - Weekly Jobless Claims, Earnings: Harley-Davidson, NYTimes…
- Friday - 1st quarter GDP reading, Earnings: Chevron, Burger King…