Ross Aldridge @ Las Vegas Nevada shows the Blood Moon rising but the negative effect on 2nd Quarter stocks. As the April 15 index displayed- Japanese stock-index futures jumped after the Standard & Poor's 500 Index rebounded from the worst weekly loss in two years on better-than-estimated retail sales and earnings from Citigroup Inc Commodities rallied.
Nikkei 225 Stock Average futures rose 0.9 per cent in Osaka. The S&P 500 rebounded to close yesterday at 0.8 per cent. The yen was little changed against the dollar as of 7.12am in Tokyo, while the rouble slid 0.9 per cent amid concern the situation in Ukraine is worsening. The S&P GSCI gauge of 24 raw materials rose 0.9 per cent to the highest level since March 4. Palladium advanced to the highest since August 2011 and nickel jumped to the highest since February 2013.
American retail sales increased in March by the most since September 2012, Commerce Department figures showed yesterday. Citigroup, the third-biggest US bank, rallied 4.4 per cent after reporting an unexpected profit increase in the first quarter.
"When you have a market down so much over the past few weeks, people are getting a little bit worried," Brent Schutte, senior investment strategist at BMO Global Asset Management in Chicago, said in a phone interview. The firm has over $128 billion in assets. "Any time you get incrementally better US data and decent earnings, you have a backdrop to go higher."
The S&P 500 and Nasdaq Composite Index rallied more than 1 per cent early in the day yesterday amid optimism on earnings and the US economy. Stocks wiped out their gains as the market headed into the final hour of trading, only to rebound before the close. The Nasdaq Composite ended the day with a 0.6 per cent gain, while the Russell 2000 Index added 0.4 per cent.
The VIX, a benchmark gauge for equity options, slipped 5.4 per cent to 16.11 today, after briefly erasing losses in the last hour. The measure has jumped 17 per cent this year.
A retreat in so-called high-beta stocks including Facebook Inc dragged the Nasdaq Composite down as much as 0.3 per cent. Internet stocks and biotechnology companies are considered to have higher beta, or volatility, than the market because their earnings potential is hard to predict.
The Dow Jones Internet Composite Index jumped 0.8 per cent after tumbling 3.3 per cent last week. Twitter Inc and Yahoo! Inc rallied more than 1.8 per cent. The Nasdaq Biotechnology Index was little changed, recovering after rallying 2.7 per cent and then plunging 1.9 per cent. The gauge entered a bear market on April 11, falling more than 20 per cent from an all-time high in February.
"Right now everyone is watching beta to figure out whether or not the beta flush trade is over," Yousef Abbasi, a market strategist at JonesTrading Institutional Services LLC in New York, said in an interview. "That is dictating overall market sentiment."
The S&P 500 slid 2.6 per cent last week amid disappointing results at JPMorgan Chase & Co and signs hedge funds were dumping the bull market's best performers. The benchmark index dropped as much as 4 per cent from an all-time high on April 2 as concern grew that valuations may be too high as earnings season begins.
Coca-Cola Co, Goldman Sachs Group Inc, Yahoo, Google Inc and General Electric Co are among companies scheduled to report earnings later this week. Profit for members of the S&P 500 probably fell 0.9 per cent in the first quarter, analysts now forecast, after anticipating a 6.6 per cent rise in January. Sales increased 2.6 per cent, according to projections.
The S&P 500 has rallied as much as 180 per cent from its 2009 low as earnings surpassed forecasts and three rounds of bond purchases from the Federal Reserve fuelled economic growth.
The US dollar was little changed at 101.84 yen today. The euro traded at 140.74 yen.
The MSCI Emerging Markets Index slid 0.4 per cent yesterday, retreating for a second day. Ukraine's central bank raised its benchmark discount rate to support the currency after clashes between pro-Russian separatists and government forces in the east of the country turned deadly.
Amid the growing tensions, European officials agreed to add new names to a list of people facing sanctions following Russian President Vladimir Putin's annexation of Crimea. Ministers accused the Russian government of stoking the latest unrest with the same methods it used to destabilize the Black Sea peninsula before moving to take it over. The US also raised the prospect of further measures against Russia.
The rouble dropped to 35.96 per US dollar, the weakest since March 24. Russia's Micex Index fell 1.3 per cent, taking its loss since Putin's incursion into the Crimea region at the beginning of March to 7 per cent.
"The Ukraine tension is giving things linked to Russia a sentiment boost but this remains more of a tail risk, especially as many commodities already have their own existing supply story," Dominic Schnider, head of commodities research at UBS AG's wealth-management unit, said by phone from Singapore.
The S&P GSCI climbed 0.9 per cent to the highest level since March 3. Palladium advanced to the highest since August 2011 and nickel gained 2.2 per cent, the 11th consecutive increase in the longest streak since October 2010. Russia is the biggest producer of palladium and Moscow-based OAO Norilsk Nickel is the top producer of refined nickel.
Brent and West Texas Intermediate crudes rose to five-week highs on escalating tension between Ukraine and Russia. Brent for May settlement increased 1.6 per cent, while WTI added 0.3 per cent. Gold climbed 0.6 per cent.
The broad base index will dictate less volumn with a downward trend that might reveal a 2-3 percent trim over the next 10 trading days. Follow Ross Aldridge @ Las Vegas Nevada for additional results during the Blood Moon trading sessions.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.