In a report yesterday, IMF (International Monetary Fund) said the GDP (gross domestic product) in U.S increased 1,9% last year. The U.S will accelerate to 2,8% expansion in 2014, and 3% nest year. Stronger growth in U.S in 2014 and 2015 will help the world economy withstand weaker recoveries in Emerging markets.
(Chart: Nasdag Index, April 8, 2014)
JPMorgan Chase & Co and Wells Fargo & Co are reporting earnings this week. The largest aluminium producer Alcoa posted first quarter earnings yesterday. They started the earnings season kick off after the close yesterday.
Alcoa have historically been the unofficial kickoff to quarterly earning season. Revenue of $5,45B (-6,5% Y/Y), misses by $100M. EPS of $0,09 beats by $0,04. Alcoa shares is up +2,39% AH. CNBC`s Jim Cramer is bullish on First Solar, and the stock soared 6,7% yesterday.
After its worst three-day drop since 2011, Nasdaq rose yesterday +0,81%. It`s interesting to see that most of the tech stock jumped yesterday. LinkedIn jumped +5,92%. Google +3,12%. Facebook +2,18%. Tesla +3,83% and Netflix +3,22% to name a few.
But there is one stock that slid yesterday; Twitter. Down -1,58%. The stock is trading at $41,78. Let me put it this way: I am not surprised! They have changed the profile page and look like their rivals Facebook and Google+, but that is not enough to boost its shares I think.
Yen rose yesterday as the Japanese equities fell. Yen rose the most since August 2013. European stocks advanced today and its all in a green territory. The pan-European FTSEurofirst 300 was up 0,2%, retracing all of Tuesday`s fall.
The appetite for stocks was boosted by a recovery yesterday, but I think it is time to be cautious. I`m not buying stocks with both hands right now. The crisis in Ukraine has flared up again, and the earning season has started again. I will follow the report earnings that is coming the next weeks.
10:00 a.m EST Wholesale Inventories m/m
10:30 a.m EST Crude Oil Inventories
1:01 p.m EST 10-y Bond Auction
2:00 p.m EST FOMC Meeting Minutes
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