Media Quotes

Sarhan in CNBC: US stocks open mostly higher with earnings, oil in focus

Wednesday, April 20, 2016 9:35am
U.S. stocks opened mostly higher Wednesday amid more earnings reports, as investors eyed oil prices ahead of crude inventory data due later in the morning.
“We seem to have a fine balance between the tug of war that is crude prices and earnings that are better than worst case scenario,” said Art Hogan, chief market strategist at Wunderlich Securities.
“Right now earnings are winning that tug of war,” he said. “To me it feels like correlation between oil and the S&P (breaks down) above $40.”
U.S. crude oil futures for May delivery traded more than 2 percent lower, fighting to hold $40 a barrel in morning trade ET. After the settle, the contract rolls to June, which as also trading lower near $41.60 a barrel.
Weekly oil inventories are due at 10:30 a.m. ET. WTI turned lower in late trade Tuesday after the American Petroleum Institute reported a surprise build and news of settlement in Kuwait’s oil worker strike.
On Tuesday, the S&P 500 topped the psychologically key 2,100 level for the first time since early December, while the Dow Jones industrial average held above the 18,000 level.
“As the market continues to grind higher and it refuses to sell off , that means the underlying bid is alive and well,” said Adam Sarhan, CEO of Sarhan Capital.
Coca-Cola earned an adjusted 45 cents per share for the first quarter, 1 cent above estimates, with revenue slightly above forecasts. Worldwide case volume was up two percent, slightly below analysts’ forecasts.
Intel beat forecasts by 6 cents with adjusted quarterly profit of 54 cents per share, with revenue essentially in line. However, the chip maker gave lower-than-expected revenue guidance and cut its full-year profit margin outlook. It also announced it would cut up to 12,000 jobs and that Chief Financial Officer Stacy Smith would leave that post to lead Intel’s sales efforts.
In economic news, existing home sales are due in the morning.
Overseas, European stocks were narrowly mixed while Asian stocks ended mostly lower. The Shanghai composite fell 2.3 percent, amid reports that China’s central bank may not ease as aggressively this year.
On tap this week:
Earnings: American Express, Coca-Cola, Abbott Labs, EMC, SLM, F5 Networks, Mattel, United Continental, Qualcomm, Stryker, Las Vegas Sands, Tractor Supply, Yum Brands, U.S. Bancorp, Illinois Tool Works, Canadian Pacific Railway, St. Jude Medical
10 a.m. Existing home sales
Earnings: Alphabet, Microsoft, General Motors, Visa, Starbucks, Bank of NY Mellon, Biogen, Under Armour, Southwest Air, Stanley Black and Decker, Imax, Novartis, Union Paicific, DR Horton, Fifth Third, Johnson Controls, Pulte Group, Polaris, Alaska Air, Verizon, Travelers, E*Trade, Norfolk Southern, Boston Beer
8:30 a.m. Initial claims
8:30 a.m. Philadelphia Fed survey
9 a.m. FHFA home prices
Earnings: General Electric, Caterpillar, McDonald’s, Honeywell, AutoNation, American Airlines, Synchrony Financial, Kimberly-Clark, SunTrust, LyondellBasell, Steve Madden, Daimler
9:45 a.m. Manufacturing PMI
*Planner subject to change.