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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   95-09 (-07.5)  
  FN 2.5% Coupon   103-08.5 (-01)  
  Support   1.269%  
  Resistance   0.798%  
  Wednesday, April 14, 2021

Stocks Gain as Earnings Arrive; Goldman Delivers Strongest Performance in Over a Decade

The market opened today's session with treasuries lower across all maturities. The 10-year Treasury yield is at 1.6376, 2.31 bps higher than prior closing of 1.6145.

US stocks climbed higher as investors weighed the earnings that rolled in from different companies. The S&P 500 Index continued rising beyond Tuesday’s record closing high, reaching 4,147.91, with the industrial and energy sectors leading gains. JPMorgan Chase & Co. declined as the bank warned that loan demand remained tepid. Shares of Discovery Inc. also dropped after Credit Suisse Group AG unloaded $2 billion of stocks tied to the Archegos Capital Management crisis, including those of the media company. Goldman Sachs Group Inc., however, cashed in on another roaring period for investment bankers with revenue and earnings rising to a record in a quarter. Goldman’s traders delivered their strongest performance in over a decade, with a 47% surge in revenue, led by a jump in equities. In Europe, the Stoxx 600 Index went up 0.2% to 436.89, as European shares got a boost from positive updates by LVMH and SAP SE. With global equities nearing all-time highs, investors continue to look into the earnings season for further catalysts. Expectations of a strong profit rebound have helped markets rally, setting the bar high as reporting gets underway. More broadly, investors are monitoring vaccine developments for any threats to the economic recovery, while also keeping an eye on rising inflation. According to the White House, the U.S. inoculation campaign will continue its course despite the Johnson & Johnson halt on doses amid health concerns. J&J shares were lower in U.S. pre-market trading, while Moderna Inc. rose. Elsewhere, Bitcoin jumped to an all-time high, along with Ethereum, the second-largest digital token, with shares of Coinbase Global Inc. set for their trading debut on the Nasdaq. On Wednesday, the Economic Club of Washington hosts Fed Chair Jerome Powell for a Q&A and the US Federal Reserve releases Beige Book. On Thursday, US data including Initial Jobless Claims, Industrial Production and Retail Sales will be released.

The curve has bear-steepened with the UST 10-Year yield up 2.31 bps.

This Week's Events
  04/13 NFIB Small Business Optimism 03:00 Mar 98.50 98.20 95.80 -  
  04/13 CPI MoM 05:30 Mar 0.50% 0.60% 0.40% -  
  04/13 CPI YoY 05:30 Mar 2.50% 2.60% 1.70% -  
  04/13 CPI Index NSA 05:30 Mar 264.700 264.877 263.014 -  
  04/13 CPI Core Index SA 05:30 Mar 270.970 271.214 270.299 -  
  04/14 MBA Mortgage Applications 04:00 9 Apr - -3.70% -5.10% -  
  04/15 Initial Jobless Claims 05:30 10 Apr 700k - 744k -  
  04/15 Continuing Claims 05:30 3 Apr 3700k - 3734k -  
  04/16 Building Permits 07:00 Mar 1750k - 1682k 1720k  
  04/16 Building Permits MoM 05:30 Mar 1.70% - -10.80% -8.80%  
  04/16 Housing Starts 05:30 Mar 1611k - 1421k -  
  04/16 Housing Starts MoM 05:30 Mar 13.40% - -10.30% -  
  04/16 U. of Mich. Sentiment 07:00 Apr P 89.00 - 84.90 -
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