STOCKS
On Thursday, after the close of trading, Google Inc. (GOOGL,
+2.21%) is expected to report 1st quarter earnings. With increased competition
from other mobile advertising rivals such as Facebook Inc. (FB, +2.87%), Google
has struggled to surpass revenue expectations. According to Ross Sandler, an
analyst from Deutsche Bank, investor sentiment around Google has declined on
concerns that their paid-clicks will decline. For the first quarter, the
internet giant reported that there was an 11 percent growth in paid-clicks yet
this missed analysts’ expectations for a 17% increase. Analysts also expect
Google to report adjusted EPS (earnings per share) and GAAP of $6.61. This
would mark a 5.4 percent improvement year over year compared to last year’s
results of $6.27. Added to this, analysts forecast that Google will report
revenue of $14 billion. This excludes traffic acquisition costs. Compared to
the $12.2 billion reported at the same time last year, this will mark a 15
percent improvement. Over the last year, Google shares have been trading flat
and are currently at around $544.74 a share. Over the last 3 months, there has
been a growth of 7 percent in the company’s share price.
INDICES
In trading on Monday, U.S. stocks rallied to post their
biggest advance in 3 weeks. This increase came in response to better than
expected earnings reports which boosted investor sentiment. With Microsoft
Corp, Apple Inc. and IBM Corp leading the gains, the Dow Jones Industrial
Average (DJIA) advanced 1.2%, or 208.63 points, to 18,034.93. Twenty four of
the blue chip index’s 30 components finished in positive territory. The top
performer on the DJIA was International Business Machines (NYSE:IBM), which
traded at $166.16, up 3.42% or 5.49 points. Also advancing was the S&P 500
index (SPX) which closed 0.9%, or 19.22 points, higher at 2,100.40, led by
gains in the technology sector. The top performer on the SPX was Hasbro Inc.
(NASDAQ:HAS) which advanced 12.55 percent to 74.16. Meanwhile, the Nasdaq
Composite index (COMP) also rose and ended the session up 1.3%, or 62.79
points, at 4,994.60. Also, the CBOE Volatility Index, which measures the
implied volatility of S&P 500 options, was at 13.27, down 4.46 percent.
CURRENCIES
On Monday, the U.S. dollar (USD) held gains on low trading
volumes. Investor sentiment on the greenback was vulnerable as a result of the
soft economic data released last week on the consumer price index and core
consumer prices. The EUR/USD traded at 1.0756, down 0.48 percent. This decline comes
as concerns mount regarding Greece and its current inability to reach an
agreement with its creditors on economic reforms for bailout funds. Investors
are now concerned that Greece could be forced out of the eurozone. Also, the
British pound and the Japanese yen traded lower against the USD with GBP/USD
down 0.31% to 1.4912 and with USD/JPY up 0.3% and trading at 119.30. Against
the Canadian and Australian dollars, the U.S. dollar traded mixed with AUD/USD
down 0.71% at 0.7730 and with USD/CAD down 0.47% to trade at 1.2190. Also, the
U.S. dollar index was at 98.00, up 0.39%.
COMMODITIES
On Tuesday, in morning Asian trading, crude oil prices declined. This came as investors turn their attention to the industry data on petroleum stocks expected out of the U.S. today while tensions in Yemen have prompted concerns regarding supply. Today, the American Petroleum Institute (API) will release its estimates of the stockpiles of distillate, gasoline and crude as of last week. On Wednesday, this will then be followed by a report from the U.S. Department of Energy. WTI crude for delivery in June traded at $57.78 a barrel, down 0.18 percent, on the NYMEX. Overnight on Monday, crude oil prices rose in response to the escalating tensions in Yemen which reduced investor concerns regarding the global supply glut of crude oil. Meanwhile, Brent crude futures for delivery in June traded at $63.52 a barrel on Monday on the Intercontinental Exchange (ICE). Last week, both Brent and WTI crude futures reached a four-month high.
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