*from www.bloomberg.com, April 26, 2013 (To view original article click here.)
Take Away #1: U.S. stocks fell and commodities tumbled after a report showed the American economy grew less than forecast.
Key Facts and Figures:
- The S&P 500 Index dropped 0.2% at 1:41 p.m. in New York, paring an earlier decline of 0.5%.
- The S&P GSCI gauge of 24 commodities slipped 0.5%, as oil and copper dropped more than 0.6% and gold reversed an earlier rally.
- The U.S. economy expanded 2.5% in the first quarter, less than the 3% forecast in a Bloomberg survey, after growing 0.4% in the final three months of 2012.
- The Thomson Reuters/University of Michigan final April index of consumer sentiment fell to a three-month low as Americans grew more pessimistic about the economy.
Take Away #2: Treasuries rose while the yen strengthened.
Key Facts and Figures:
- Treasuries rose, sending 10-year yields four basis points lower to 1.67%.
- Japan’s currency appreciated 1.1% to 98.13 per dollar.
- The yen rose at least 0.7% against all 16 of its major counterparts as BOJ Japan Governor Haruhiko Kuroda and his fellow board members concluded their second policy meeting this month.
- The BOJ kept its vow to double the monetary base without outlining any additional measures to reach its inflation target.
- The euro weakened 1 percent to 127.82 per yen and gained 0.2 percent to $1.3033.
- Sweden’s krona climbed versus all its major peers except the yen after a report showed consumer confidence exceeded analyst estimates.
Take Away #3: The decline in the S&P 500 trimmed the benchmark gauge’s rally for the week to 1.7%.
Key Facts and Figures:
- Sixteen companies in the S&P 500 released results today.
- Of those that have reported so far this season, 74% topped profit projections while 54% missed sales estimates, according to data compiled by Bloomberg.
- Amazon.com Inc. (AMZN) fell 6.8% as a second-quarter earnings forecast from the world’s largest online retailer missed analyst projections.
- Starbucks Corp. dropped 1% as it reported sales that trailed analysts’ estimates.
- J.C. Penney Co. jumped 8.4% after billionaire investor George Soros disclosed a passive stake in the retailer.
- The S&P 500 has surged 134% from a 12-year low in 2009.
- The S&P 500 surged as corporate earnings beat analyst estimates and the Fed embarked on three rounds of bond purchases to spur economic growth.
- The benchmark gauge is up 0.8% in April.
- Both the S&P 500 and the Dow Jones Industrial Average reached record highs on April 11.
Take Away #4: Fed policy makers have said they will maintain stimulus until the labor market improves “significantly”.
Key Facts and Figures:
- The economy’s inability to sustain faster growth means central bankers will probably affirm a pledge to keep buying bonds when they meet next week.
- The Labor Dept. releases its monthly jobs report on May 3.
Take Away #5: Global stocks rallied this week as speculation mounted the European Central Bank will cut rates when it meets on May 2.
Key Facts and Figures:
- Thirty six of 61 economists in a Bloomberg news survey have predicted that the central bank will lower its benchmark rate to 0.5% from 0.75%.
- “If you were to pick one thing people are worried about right now, it’s will or won’t the ECB cut rates,” said John Canally, of LPL Financial Corp.
- “Most people think yes, but if the ECB disappoints, it could be difficult,” said Canally.
Take Away #6: Mining and energy companies led losses in the Stoxx 600, paring the gauge’s weekly rally to 3.7%.
Key Facts and Figures:
- The Stoxx Europe 600 Index fell 0.3%, trimming its biggest weekly gain in five months.
- PPR SA, the luxury-goods company that plans to change its name to Kering in June, sank 6.7%.
- This is the company’s biggest drop since 2009 and comes after revenue trailed analysts’ projections.
- YIT Oyj slid 8%, its biggest loss in 18 months, as the Finnish construction company reported earnings that missed estimates.
- “On the one hand, the market got excited about a possible rate cut by the ECB,” said Mark Andersen, co-head of asset allocation at UBS AG in Zurich.
- “On the other hand, quarterly results have reminded us that the European economy is not in a great spot,” said Andersen.
Take Away #7: The S&P GSCI gauge of 24 commodities slipped 0.5%, narrowing this week’s gain to 2.4%, the biggest weekly advance since February.
Key Facts and Figures:
- For the month, the S&P GSCI is down 5.1%, the most since June.
- Copper’s decline trimmed this week’s gain to 0.5%.
- Crude is still up 5.6% for the week, the most since July.
- Gold futures lost 0.6%, reversing an earlier gain of as much as 1.6%.
Take Away #8: The MSCI Emerging markets Index slipped 0.4%, trimming this week’s gain to 1.2%.
Key Facts and Figures:
- India’s S&P BSE Sensex slid 0.6% and South Korea’s Kospi index lost 0.4%.
- The Shanghai Composite Index sank 1%, capping a 2.6% retreat in April.
- China’s financial markets will be shut from April 29 through May 1.
*To view original article from www.bloomberg.com click here.