Daily Market Color

Equities and Rates Move Sideways Ahead of Big Earnings Week


Earnings-heavy week starts out mixed. The S&P 500 rallied to close up 10 basis points at 2,913 while the Dow Jones Industrial Average sold off 0.18%. US equities were led higher by energy and communications sectors, with real estate and materials stocks lagging behind. Looking ahead, this week will see 150 companies from the S&P 500 report their Q1 performance. Tomorrow morning investors will get earnings from Twitter, Snapchat and State Street Bank (among other names).



Crude rallies as US ends waivers on Iranian oil. The latest measure, announced by US Secretary of State Mike Pompeo this morning, ends the loophole that granted some countries permission to import Iranian crude. The move sent oil prices to new highs for the year- US crude rising 2.6% to $65.66/barrel. The announcement has significant implications for energy prices, but it may have an additional impact on global markets as Japan, South Korea and Turkey (all key US allies) currently import a Iranian oil and may face US sanctions if they don’t comply.



Rates markets little changed as corporate earnings come into focus. Treasurys fell during the low-volume session, 10 year yields remaining at 2.59%. In macroeconomic news, existing home sales missed the forecasted rate of 5.3 million by 900,000. Markets did not react strongly to the miss, most attributing the lower rate to normalization after a blockbuster figure in February.


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