Weekly Review | Mar 31 to Apr 7

Approved for release April 07, 2014

Market Indices

Index Mar 31, 2014 Apr 7, 2014 Change Percent
DJIA 16324.22 16412.71 88.49 +0.54
Nasdaq 4185.63 4127.73 -57.9 -1.38
S&P500 1859.16 1865.09 5.93 +0.32
Russell 2000 1158.11 1153.38 -4.73 -0.41
Russell 1000 865.66 862.75 -2.91 -0.34

Equity Review

The S&P 500 and Dow Jones both hit all time highs on Friday, and ended the week with gains.  The S&P 500 closed at 1,865.09, up 0.4% for the week ended April 4.  The Dow Jones finished at 16,412.71, up 0.6% for the week.  Micron Technology reported a profit for its second quarter.  Net income was $731 million, or $0.85 per share, compared to a loss of $286 million, or $0.28 per share for the year-earlier period. Analysts were expecting $0.76 cents per share.  The company’s CEO stated, “Beyond 2014, we expect similar year-over-year industry supply growth in the 20-30% range driven by relatively stable wafer output coupled with slowing process technology migrations compared to historical trends.” Monsanto Co. delivered a profit and beat Wall Steet’s expectations. Earnings per share were $2.73 beating the estimate of $2.58 per share.  Management said, “Our commitment to serving our farmer customers around the world is at the core of everything we do.  By understanding their needs and finding new ways to work with them to meet growing demand, we’ve achieved momentum in our business and strong results across our global portfolio. Our performance underscores our expectation for a third consecutive year of strong earnings growth and reinforces our opportunities for the future as well. As we move into the second half of the year, we are thankful for the opportunity to serve our customers and continue to earn their business as a leader in this dynamic industry”  Earnings season kicks off this week with results from Alcoa and J.P. Morgan Chase.

Economic Indicators

Jobless Claims (4 wk avg)
-0.08 Apr 26, 2014 319,500
Apr 19, 2014 319,250
Monthly Job Gains
March 2012 192,000
February 2012 197,000
ISM Manufacturing Index
+0.94 March 2012 53.7
February 2012 53.2
ISM NonManufacturing Index
+2.91 March 2012 53.1
February 2012 51.6

Economic Review

The U.S. created 192,000 jobs in March.  Every industry except manufacturing added to payrolls, with job gains strongest in the professional ranks and bars and restaurants, according to the Labor Department.  Some economists viewed the report as a disappointment since the forecast was an increase of 200,000 nonfarm jobs. The unemployment rate is unchanged at 6.7%.  People usually enter the labor force when they think more jobs have are available which is a good sign for the economy.  One economist commented, “American companies are hiring again at a decent rate following a brutal winter.  There was a chance for a much bigger increase in hiring in March because of poor weather earlier in the year, but such a huge snapback did not materialize.” Unemployment benefits in the last week of March rose to the highest level in a month, but continue to hover near the lowest level since the end of the last recession. New jobless claims jumped by 16,000 to 326,000 in the week ended March 29.  The forecast was a rise to 320,000 claims. The U.S. trade deficit rose in February to a five-month high, mainly due to lower exports.  This has led to some Wall Street firms lowering forecasts for U.S. GDP growth in the first quarter. The trade gap widened to $42.3 billion according to the Commerce Department. The forecast was a deficit of $39.1 billion.  Fewer sales of American goods and services overseas or higher purchases of foreign-made products are more supportive for overseas economies.  U.S. exports fell 1.1% in February to $190.4 billion, the smallest amount since September, while imports edged up 0.4% to $232.7 billion. Economists say the U.S. trade deficit has gradually declined over the past few years, largely because of a rapid increase in domestic production of oil and natural gas, but there has been little change in exports or imports since last summer - a reflection of the sluggish pace of growth in the U.S. and around the world.

U.S. Bonds

Two Year Note 0.403

Ten Year Note 2.707

30 Year Bond 3.577

Currencies & Commodities

Euro 1.3736

Pound 1.6616

Yen 103.23

Canadian Dollar 1.0977

Crude Oil 101.26

Gold, Apr 1299.2

Economic Calendar

Monday

Consumer Credit $14.0 B

Tuesday

NFIB Small Bus Optimism Index 92.4

Wednesday

Wholesale Trade 0.6 %

Thursday

Export Prices 0.3 %

Import Prices 0.2 %

Treasury Budget $-132.8 B

Friday

PPI-FD 0.1 %

PPI-FD Less Food/Energy 0.2 %

PPI-FD Less Food/Energy/Trade 0.1 %

Consumer Sentiment 81.0

*Actual consensus values reported.

Copyright © 2003-2014 BlueCreek Investment Partners | 100 Church Street, Suite 500 | Huntsville, AL 35801 map
Phone: 256.704.5111 | Toll-Free: 866.730.6944 | Fax: 256.704.5110
Privacy Policy | Disclosures | Business Continuity Plan