April 15th 2014 – Nasdaq Posts Biggest Turnaround for 5 Years

By John Bannan | April 15, 2014

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My Market View:

I still believe there is an oversold bottom here, but the volatility may still be around for a few more days.  The Ukraine issue is heating up again, but seemed to be largely ignored given the turnaround today.  The Nasdaq at its low today was 9% lower than its recent high, so time for a bounce up, possibly to a new all-time high on the S&P 500 in a number of weeks.

 

Market News

U.S. stocks turned higher Tuesday afternoon as investors weighed upbeat earnings from Dow components Coca-Cola and Johnson & Johnson against disappointing reads on builder sentiment and New York-area manufacturing, while tracking events in Ukraine.

The market’s latest reversal happened to come in roughly the same time frame as a story Tuesday afternoon that Japan planned to downgrade its economic assessment

After a bright start equities fell, pushing the Nasdaq Composite down 9 percent from its March highs, after The Federal Reserve Bank of New York’s gauge of manufacturing fell in March and the National Association of Home Builders/Wells Fargo Housing Market Index climbed to 47 in April, coming in below estimates.

In economic news, the Consumer Price Index rose 0.2% in March, compared with the 0.1% rise economists had predicted. Excluding food and energy prices, the index increased 0.1%, matching expectations.

A measure of manufacturing activity in the New York area unexpectedly fell in April. The so called “empire index” fell to 1.3 this month, according to the Federal Reserve Bank of New York. Economists were expecting an increase.

European markets fell as tension in Ukraine weighed on sentiment. Asian markets closed with mixed results.

Tuesday:  7:00 a.m.: Mortgage applications, 8:30 a.m.: Housing starts, 8:30 a.m.: Fed Gov. Jerome Stein, 9:15 am Industrial production, 11:30 a.m.: Atlanta Fed’s Lockhart, 12:25 p.m.: Fed Chair Janet Yellen at Economic Club of NY, Q&A, 1:25 p.m.: Dallas Fed President Richard Fisher, 2:00 p.m.: Beige book

News Sources:  CNBC and CNN Money