The markets blasted off today starting with a strong move overnight thanks to China export numbers coming in much better than expected. This continued the rally on the U.S. open as the banks that reported mostly beat expectations. The Dow closed higher by 269 thanks to a double-digit gain in Disney (DIS ). The S&P 500 added 19 and the Nasdaq closed higher by 36.
Next week the earnings season continues with a report from Goldman Sachs (GS ) and Citigroup (C ).
Sector News
Financials broke above the 200-day moving average in a more convincing way today thanks to bank earnings being mostly positive. The financials have struggled to break out of a range in the short term. The XLF (XLF ) popped higher to the $27.50 resistance area today, where it sold off once again. Investors will look to Monday's earnings from Goldman Sachs (GS ) as well as Citigroup (C ) for more support in the short term.
Regional Banks (KRE ) also got a boost today thanks to PNC Bank's earnings, which came in better than expected. The regional banks have been looking for a catalyst to break above a congested area of resistance and today could be the start of that effort.
Semiconductors (SMH ) broke to new highs today in more of a broad-based rally. The SMH is now higher by about 30% on the year, having completely erased all Q4 losses.
Stock News
JP Morgan (JPM ) shares were sharply higher today as the company reported earnings that came in a whopping 30 cents better than expected. Revenue was also higher than expected as the company continues to see growing success in their consumer banking efforts. Investment banking was also a strong area for the company in the first quarter as well. Shares broke out of a recent range, back above the 200-day moving average. For the year the stock is now higher by about 13%.
Wells Fargo (WFC ) shares tumbled today as the company painted a slowing income outlook going forward. This overshadowed earnings that came in better than expected by 11 cents, as well as revenue, which also beat. Credit card transactions were one bright spot, coming in higher by 5% along with auto loans which grew 24% year over year. The comments from the CFO about net interest income falling by 2% were all investors needed to sell shares.
PNC (PNC ) shares were higher on the day as the company reported earnings that were as Wall Street expected, along with revenue which came in slightly better than expected (+4.3%). Higher overall interest income was a focus.
