April 16th 2014 – US stocks close at session highs

My Market View:

I think after this 3 day bounce we will see little movement tomorrow.  It was better news out of China for what was expected to be a lower growth estimate for the first quarter of the year.  Janet Yellen again commented about her willingness the recovery and the Fed’s beige book report showed moderate growth in the economy.  Positive signs of a more significant bounce to come.

U.S. stocks on Wednesday climbed for a third session after U.S. industrial production rose more than projected, Yahoo’s earnings topped estimates and Federal Reserve Chair Janet Yellen reiterated the central bank would keep up its backing of the recovery.

Stocks held most of their gains as Federal Reserve Chair Janet Yellen addressed the Economic Club of New York Wednesday afternoon and after the release of the Fed’s Beige Book, which found the U.S. economy bounced back from weather-related declines in recent weeks, with modest or moderate economic activity in eight of the Fed’s districts.

In her speech, Yellen reiterated her intention to support the recovery even as the labour market improves, with the 6.7 percent unemployment rate in March still a percentage point higher than the central bank’s projection of full employment.

Economic data had U.S. manufacturing output rising for a second straight month in March, with factory production up 0.5 percent last month and overall industrial production climbing 0.7 percent, beating expectations.

Another report from the Commerce Department had the pace of U.S. home construction bouncing back less than expected last month, with the data coming after a report Tuesday that showed homebuilder confidence rising less than projected in April.

Data from China had the world’s second-largest economy expanding by 7.4 percent in the first quarter of 2014, slowing from a 7.7 percent increase in the final quarter of last year.

Thursday:

Earnings: General Electric, BlackRock, Goldman Sachs, Morgan Stanley, Blackstone, DuPont, Union Pacific, Pepsico, Chipotle, Baker Hughes, Sherwin-Williams, Fifth Third, AutoNation, Sonoco Products, Snap-on Mattel, Cypress Semiconductor, Baxter, Taiwan Semiconductor, Rockwell Collins

8:30 a.m.: Jobless claims

10:00 a.m.: Philadelphia Fed survey

News Sources:  CNBC and CNN Money