Market Overview

Mid-Afternoon Market Update: NII Holdings Drops as the NASDAQ Continues to Surge

Mid-Afternoon Market Update: NII Holdings Drops as the NASDAQ Continues to Surge
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Toward the end of trading Thursday, the Dow traded up 0.83 percent to 14,823.01 while the NASDAQ surged 1.29 percent to 3,341.22. The S&P also rose, gaining 0.90 percent to 1,596.70.

Index Technicals:
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.

Top Headline
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 24.55 percent to $31.46 after beating on the top but missing on the bottom line, while impressing traders on its conference call.

Shares of Generac Holdings (NYSE: GNRC) got a boost, rose 10.01 percent to $38.24 after the company reported record Q1 results.

Hornbeck Offshore Services (NYSE: HOS) was also up, gaining 13.23 percent to $49.38 on upbeat Q1 results.

Equities Trading DOWN
NII Holdings (NASDAQ: NIHD) fell sharply at the open, bouncing lower throughout the day, and is currently down 9.00 percent to $7.58 after posting a loss after the close Wednesday.

Shares of AU Optronics (NYSE: AUO) were down 9.41 percent to $4.43 after the company announced its plans to sell $350 million of stock.

Halcon Resources (NYSE: HK) shares tumbled 9.28 percent to $5.67 on downbeat Q1 profit.

In commodity news, oil traded up 2.89 percent to $93.66, while gold traded up 1.46 percent to $1,467.40.

Silver traded up 0.80 percent Thursday to $23.83, while copper rose 0.76 percent to $3.10.

European shares were mostly higher after 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 gained 0.03 percent while the Italian FTSE MIB Index fell 0.04 percent. Meanwhile, the German DAX rose 0.76 percent while the French CAC 40 rose 0.05 percent and U.K. shares gained 0.27 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.

Natural gas supplies rose 43 billion cubic foot for the week ended April 26, the Energy Information Administration reported. However, analysts were expecting a rise between 28 billion cubic feet and 32 billion cubic feet.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Commodities Global Econ #s Economics Hot


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