Positive earnings results from a number of blue chip companies should help sentiment as the market waits for a number of major economic releases a little later. The March New Home sales numbers are expected to edge up a little from February level, while the Conference Board’s April Consumer Confidence level is expected to be around the same level as in March.
But all eyes will be on the Fed, which starts its 2-day meeting today. The official post-meeting statement from FOMC at noon Wednesday is not expected to have any surprises, though the spotlight will be on Ben Bernanke who holds a press conference Wednesday afternoon. The market will be keenly looking for any clues to any forthcoming QE-type actions that Bernanke may be contemplating following the recent run of softer labor market readings.
On the earnings front, we got positive earnings surprises this morning from Dow components AT&T (T), 3M Company (MMM) and United Technology (UTX). AT&T beat earnings expectations on in-line revenue, though the cellular giant’s subscriber additions were a little softer than expected. 3M Company also beat earnings expectations and raised guidance, though its quarterly revenue matched expectations. Baker Hughes (BHI) also beat revenue and EPS expectations. After the close on Monday, Texas Instruments (TXN) posted better than expected results and guided higher, while Netflix (NFLX) missed expectations. We have Apple (AAPL) reporting results after the close today.
Consumer Confidence figures are expected today at 10:00 AM. The index had decreased to 70.2 in March from 71.6 in February. The Present Situation Index increased to 51.0 and the Expectations Index decreased to 83.0.
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