April 30th 2014 – Dow Closes Out a New Record High

Market View:

The Fed statement and latest taper had little effect on the market.  It was of course highly expected.  The was no dissent amongst the Fed and Janet Yellen was again confident in her analysis on strong forward guidance in the coming quarters with a long cold winter being blamed for weak economic numbers in Q1.  The Dow Jones just hit as new record and I think the S&P 500 will be above its record soon.  The Nasdaq has closed out 2 months down, so good riddance to March and April and bring on a positive May.

Market News:

U.S. stocks rose on Wednesday, with the Dow Jones Industrial Average hitting its first record close of the year, as Wall Street welcomed a further reduction in the Federal Reserve’s monthly bond purchases while looking past data showing the economy slowed more than expected in the first quarter.

In its statement, the central bank said the economy has gained traction recently after a sharp slowdown. It trimmed its monthly asset purchases to $45 billion, making its fourth consecutive $10 billion cut.

Equities had fluctuated ahead of the Fed move while weighing reports that had growth stalling in the first quarter and employers adding more workers than projected to their payrolls in April.

The government’s estimate that the U.S. economy grew 0.1 percent in the first quarter, versus a 1.2 percent estimate, drew a muted reaction from stock futures ahead of Wall Street’s open

After spending most of the session in the red, the Nasdaq advanced, gaining 11.01 points, or 0.3 percent, to 4,114.56, leaving it down 2 percent for April, its second monthly decline.

Another report on Wednesday had private employers adding 220,000 workers in April, with the prior month’s job additions revised up to 209,000 from 191,000.

And, the Institute for Supply Management-Chicago business barometer expanded more than expected in April, jumping to its highest level since October 2013.

Thursday:

Light vehicle sales

Earnings: ExxonMobil, MasterCard, ConocoPhillips, Cardinal Health, Mylan Las, Domino’s Pizza, Iron Mountain, Beazer Homes, Generac,Expedia, American Tower, Cigna, CME Group, Goldcorp,Clorox, Calpine, Marathon Petroleum, Kraft, LinkedIn, Vertex Pharma, Akamai, Teva Pharma, Kellogg, Agnico Eagle Mines, Open Table

8:30 a.m.: Fed Chair Janet Yellen speaks to the Independent Community Bankers of America

8:30 a.m.: Initial claims

8:30 a.m.: Personal income

8:58 a.m.: Manufacturing PMI

10:00 a.m.: ISM manufacturing

10:00 a.m.: Construction spending

News Sources:  CNBC and CNN Money