May 6th 2014 – Stocks Finish Sharply Lower

Market View:

As we approach new all-time highs in the S&P 500, there is clearly natural resistance that will cause some sideways action.  Having something like 8 positive Tuesday in a row it was inevitable that this one would turn out to be a red day.  Still, I expect to see some more positive action tomorrow in some sort of rebound.  There are lots of new IPO filings tomorrow usually cheers the market.

Market News:

U.S. stocks declined sharply on Tuesday, a day after the Dow industrials and S&P 500 closed near record highs, as American International Group reported a decline in profit and Twitter fell as insiders got their first opportunity to sell since the company’s initial public offering.

The U.S. trade deficit shrank in March as exports increased, with the gap narrowing to $40.4 billion from $41.9 billion in February, the Commerce Department reported. After the trade data, JPMorgan took its tracking estimate of real GDP growth in the first quarter down to negative 0.8 percent from negative 0.4 percent.

Wednesday:

Earnings: A-B InBev, Softbank, Mondelez International, Tesla,Siemens,Chesapeake Energy , Allergan, Duke Energy, Hertz Global,Devon Energy, ING Group, Tim Hortons, Keuring Green Moutain,AOL,Sotheby’s, Prudential Financial, Transocean, Molson Coors, Solar City, Zillow, Sprout’s Farmers Market

8:30 a.m. Productivity and costs

10:00 a.m.: Fed Chair Janet Yellen testifies before Joint Economic Committee on economy

3:00 p.m.: Consumer credit