Mid-Morning Market Update: Markets Open Higher, GM Profit Beats Estimates
Following the market opening Thursday, the Dow traded up 0.27 percent to 14,740.27 while the NASDAQ surged 0.53 percent to 3,316.61. The S&P also rose, gaining 0.34 percent to 1,588.12.
The S&P 500 rejected its 1,597 highs and headed lower to test its 1,575 support which lies on the 20 EMA support line.
Next up, the Dow rejected its 14,850 resistance and dropped down to test its 14,700 support, which is inline with its 20 EMA support. 14,450 acts as support below that, which is in line with its 50 EMA support.
The NASDAQ is finding new resistance at 3,330, before heading lower to test its 3,300 support/ past resistance. 3,260 will act as support below.
Finally, the Russell failed to breakout over 950 and lost its 930 support. 915 is a support level below that, while it has lost both its 20 EMA and 50 EMA support levels.
General Motors Co (NYSE: GM) reported a better-than-expected Q1 net profit.
GM's quarterly net income declined to $865 million, or $0.58 per share, from $1 billion, or $0.60 per share, in the year-ago period. Excluding one-time items, GM earned $0.67 per share, beating analysts' estimates of $0.54 per share. Its revenue declined 2% to $36.9 billion, versus estimates of $36.6 billion.
During the quarter, General Motors sold 2.36 million vehicles. GM's sales in North America climbed 8% to 761,616 vehicles, while sales in Europe fell 6% to 372,634 units.
Equities Trading UP
Yelp (NYSE: YELP) shot up 15.34 percent to $29.18 on Q1 results.
Shares of Generac Holdings (NYSE: GNRC) got a boost, shooting up 11.55 percent to $38.78 after the company reported record Q1 results.
Tutor Perini (NYSE: TPC) was also up, gaining 11.85 percent to $17.89 on Q1 results.
Equities Trading DOWN
SolarCity (NASDAQ: SCTY) was down, falling 9.29 percent to $25.40 after analysts at Goldman Sachs downgraded the stock from “buy” to “neutral.”
Shares of AU Optronics (NYSE: AUO) were down 10.02 percent to $4.40 after the company announced its plans to sell $350 million of stock.
Halcon Resources (NYSE: HK) shares tumbled 7.72 percent to $5.7676 on downbeat Q1 profit.
In commodity news, oil traded up 0.78 percent to $91.74, while gold traded up 1.76 percent to $1,471.60.
Silver traded up 3.37 percent Thursday to $24.13, while copper rose 1.27 percent to $3.12.
European shares were mostly lower despite the better than expected manufacturing data. The European Central Bank cut its main refinancing rate by 25 basis points to 0.50%. The ECB also lowered its interest rate on the marginal lending facility by 50 basis points to 1.00%.
The Spanish Ibex Index declined 1.23 percent while the Italian FTSE MIB Index fell 1.47 percent. Meanwhile, the German DAX rose 0.01 percent while the French CAC 40 fell 0.70 percent and U.K. shares slipped 0.48 percent.
The US trade deficit declined 11% to $38.3 billion in March. However, economists were expecting trade deficit of $42.0 billion.
US jobless claims dropped 18,000 to 324,000 in the week ended April 27. Economists were estimating claims to increase to 345,000, versus a revised 342,000 in the earlier week. Continuing claims rose 12,000 to 3.02 million in the week ended April 20.
Productivity increased 0.7% in the first quarter. Economists were projecting productivity to rise 0.9%, after a revised 1.7% fall in the fourth quarter. Unit-labor costs surged 0.5% in the first quarter, versus a 4.4% rise in the fourth quarter.
The Bloomberg Consumer Comfort Index rose to -28.90 in the latest week ended April 28, versus a reading of -29.90 in the previous week.
Data on money supply will be released at 4:30 p.m. ET.
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