Reply #110: noon blather

[UpInArms]

12:05PM: Eased inflation concerns amid falling oil prices provide investors just enough of a spark to offset reignited concerns about slowing earnings growth and economic expansion still weigh on overall sentiment... Mar. durable orders unexpectedly fell 2.8% - the biggest one-month drop in 2 1/2 years - following a downwardly revised decline of 0.2% a month earlier, a disappointment could slow Q1 GDP growth to below 3%...

Meanwhile, the majority of blue chip earnings out this morning (i.e. BA, VZ, WLP, COP, CEG and PD) have again beaten analysts' expectations, but Amazon.com's (AMZN 31.10 -1.61) disappointment last night has left a shadow of uncertainty looming... However, a 3.0% decline in crude oil futures ($52.35/bbl -$1.85) following a better than expected read on weekly oil inventories, has arguably renewed buying interest in stocks, as six out of ten economic sectors now trade in positive territory...

The EIA reported the highest weekly build in crude oil inventories - to 5.5 mln barrels (consensus +650K) - since May 2002 while gasoline inventories fell by a much less than expected 300K barrels (consensus -1.0 mln), calming the nerves of many an investors about the impact high gas prices have has on discretionary spending... Telecom Services (+1.6%) has paced the way higher, taking a bullish cue after Verizon Communications (VZ 34.83 +0.83) posted a 47% surge in Q1 earnings... Interest rate-sensitive sectors like Financial and Utility have also found buyers amid falling bond yields, as the 10-year note (+10/32) now yields 4.22% following the disappointing durable goods data... Health Care has also reversed course while Technology has gotten a boost from a rebound in Semiconductor...

See? It's all good news!