S&P +0.50%. The market rallied strongly in the first 90 minutes of the session on better than expected jobless claims and Philly Fed survey data. Later on the ECB also lowered ABS collateral requirements to banks in an attempt to boost bank lending.
Futures however sold after-hours on bad earnings results from Google and Microsoft; in addition to confirmation of the city of Detroit declaring bankruptcy.
Jobless claims 334K vs. 344K est./prior revised to 358K from 360K
Philly Fed 19.8 vs. 9 est., 12.5 prior. New orders 10.2 vs. 16.6 prior. Employment 7.7 vs. –5.4 prior Link
Bernanke testified at the Senate. When asked specifically about a taper in September, he said “way too early” to tell, “looking for a pickup as the year progresses”, will “look at the data”, look for “improvement in labor market indicators”, and a “pickup in (economic) growth”
Ben wants to see both an improvement in the economy and jobs numbers, which will confirm that the labor market numbers are sustainable before they taper QE.
Today his tone was much more even-handed with the market hitting all-time highs, where he even admitted the last monthly jobs number was good. This is something he wouldn’t do the previous 2 public outings due to the weaker market conditions.
$OSTK +22% big beat on both lines. Revenue accelerated to +22% y/y from negative growth 6 quarters ago
$TSM brought down their semiconductor industry forecast for 2013 and said supply chain inventory was higher than they expected. The stock tumbles at the open in Taiwan
$SAP missed software license revenue 982M euros vs. 1.02B est. and guided down for the year due to weakness in Asia Link
$NOK misses sales by 11%. Windows phone shipments 7.1M vs. 8.1M est
ECB reduced collateral requirement for ABS from 16% to 10% in an attempt to help boost bank lending to small businesses Link
Detroit declares bankruptcy
$GOOG misses earnings and sales due to higher tax rate and operating expenses. 9.56 EPS vs. 10.78 est. Paid click 23% vs 20.2% est., cost-per-click –6% vs. –2.6% est.
$MSFT misses sales by a mile due to weakness in PC demand
Why Everybody Loves $TSLA Link