This afternoon, markets will keep one ear open to Chairman Bernanke’s comments, due out at any minute. We do not expect any fireworks there – but it is certainly possible.
In markets, S&P and DJIA futures are down 1%, while the NASDAQ futures have lost 1.3%. For the first time since December, Apple (AAPL) is negative for the third consecutive day, down 2.2% and below $610. Financials are really taking a brunt of the losses. JPMorgan (JPM) and Wells Fargo (WFC) reported earnings that were better-than-expected on the headline, but markets are not taking it as good news. WFC is down 2%, JPM losing 2.6%, and BAC, which reports April 19, is off 3.7%.
Along with the decline in equities, the CBOE Volatility Index (VIX) is up 10% after a 14% decline yesterday. The US$ is also getting a bid from earlier levels, with EUR/USD falling from highs above 1.32 to 1.3080 currently. AUD, GBP, and NZD are also seeing similar declines against US$.
Treasury markets are seeing a bid – 30-year bond prices are up 0.8% and 10-year note futures are up 0.5%.