Earnings, Factory Orders and Unemployment Figures (24-04-2008)

Wall Street advanced on technology and energy during Wednesday’s trading session with the likes of Apple Inc and Broadcom Corp posting strong results, while manufacturers such as Boeing also helped lift stocks. All three top indices ended the day in positive territory. 

In Asia, although stocks started the trading session with gains, sentiment turned south as Credit Suisse reported first quarter losses, which pulled down banks as well as stocks across the board. Conversely, mainland China stocks soared with the Shanghai Composite ending just shy of 10% higher after the Chinese government slashed an equity trading tax to curb the decline in indices that has wiped out $1.7 trillion of market value since last October’s highs. 

The dollar recovered from its record lows a day earlier and oil prices eased close to $118, both on the dollar’s recovery and on higher than expected inventories. Meanwhile the euro dropped further against the dollar after the biggest monthly fall in German business sentiment since September 2001. 

In Europe, stock markets plunged led by banks after the $5.3 billion in credit related writedowns reported by Credit Suisse that led to losses that were three times higher than analysts had estimated. Some strong earnings among manufacturers (ABB) and pharmaceuticals (Bayer) helped offset index declines. 

Back on the other side of the Atlantic, U.S. Market futures were pointing lower about two hours before the opening bell, as investors were eyeing strong earnings with accompanying weak or slashed outlooks from bellwethers, while a handful of economic reports are on tap for Thursday, including factory order numbers and unemployment.

Source ISFM