Reply #62: 12:09 EST numbers and blather [View All]

[UpInArms]

Dow 10,492.90 -15.07 (-0.14%)
Nasdaq 1,992.38 -13.02 (-0.65%)
S&P 500 1,183.37 -4.39 (-0.37%)
10-Yr Bond 4.349 -0.11 (-0.25%)

NYSE Volume 827,881,000
Nasdaq Volume 736,633,000

12:00PM: Market remains under pressure midday as disappointing retail sales data and earnings warnings continue to overshadow falling oil prices amid better than expected oil inventories data...March retail sales rose 0.3% and sales ex-autos grew a modest 0.1%, but both figures checked in well below expectations of 0.8% and 0.5%, respectively... Sure, the disappointing sales data may heighten fears about continued strength in consumer spending, which has subsequently kept a lid on buying interest across the board; but the numbers are not expected to greatly alter Q1 GDP estimates of 3 1/2%...

Not even a modest rally in Treasurys following the downside sales surprise, which pushed yields on the 10-yr note as low as 4.326%, has been enough to bring back buyers to extend yesterday's late-day gains... The benchmark 10-year is currently unchanged yielding 4.35%... An earnings warning from Harley-Davidson (HDI 48.73 -10.04), which actually beat Q1 estimates by a penny, as well as downside guidance from the likes of Compuware (CPWR 5.75 -1.06) and Foundry Networks (FDRY 9.07 -0.38), have increased nervousness before week one of earnings is even in the books...

Meanwhile, crude oil futures have been weak all morning, extending yesterday's 3.4% decline, amid better than expected builds of 3.6 mln barrels (consensus 400K) and 800K barrels (analysts expected levels to remain unchanged) in crude oil supplies and gasoline inventories, respectively... Lower oil, however, has failed to translate into gains for equities, as an increased focus on corporate earnings and activity in Treasurys continue to set a more definitive tone for overall trading...