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Meadows on the Markets 4.13.2012

In sum, today reversed most of yesterday’s rumor-inspired gains since, afterall the rumor proved false. S&P futures are closing near their lows of the day with traders removing positions before the weekend. S&P futures closed down 1.25%, with DJIA losing 1% as well. 

Traders moved into the typical correlations with the decline in equities: Gold down 1.5%; Crude Oil down 0.75; US$ Index up 0.8%; 30-year bonds gained 0.8%; 10-year notes up 0.3%.

Looking ahead to next week, we’ll see earnings, earnings, and earnings. Citigroup (C) reports first thing Monday morning, with analysts expecting EPS of $1.01. Also, Monday morning, Charles Schwab (SCHW), Gannett (GCI), and Mattel (MAT) report.

Tuesday is when earnings really kick into gear with Coca-Cola, (KO), Goldman (GS), Harley-Davidson (HOG), Johnson & Johnson (JNJ), State Street (STT), U.S. Bancorp (USB), IBM (IBM), Intel (INTC), and Yahoo (YHOO) among a range of others. 

Below, check out the weekly performance among equities, commodities, bonds, and currencies:

– Gold +1.6%
– 30-year Bond +1%
– 10-year Note +0.4%
– US$ flat
– EUR flat
– Crude Oil -0.4%
– DJIA futures -1.3%
– S&P futures -1.6%
– NASDAQ -2%
– Natural Gas -4.8%

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Halftime Report for 4.13.2012

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%.

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Movers and Shakers – Coinstar (CSTR)

Chart Glance: CSTR based at a $40.58 early this year, before starting a rally. CSTR closed above the Ichimoku cloud on January 24, but did not indicate a strong buy until it broke above a downward trend line that connects highs from November 2010 with July 2011 and October 2011, on February 12.

A close above $67.56, the high from November 2010, is key to further upside movement. 

Coinstar said increased revenue guidance was driven mainly by stronger than anticipated consumer demand at Redbox throughout the quarter. The company also raised its guidance for the full year 2012. Coinstar reported that popularity of movies, such as “Moneyball,” “Puss and Boots,” and “50/50,” as well as lower-than-expected card processing fees helped Q1 earnings. 

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Morning Rage 4.13.2012

Crude is sitting on modest losses this morning – down 0.3% – and Natural Gas is flat on the session at $1.983.

Gold futures are also lower by 0.3%. 

More News and Notes:
– March Core CPI – the measure excluding the things that we actually spend money on – gained 2.3% Y-o-Y, according to data released today. Monthly, core CPI gained 0.2%, while the general CPI rose 0.3%

– University of Michigan Consumer Confidence will be released at 9:55 a.m. ET

– GOOG’s earnings had a lot more than met the eye. The company announced a 2:1 stock split, giving shareholders a new class of non-voting shares. In doing, GOOG founders Sergey Brin and Larry Paige cemented control of the company into the long-term

–  Apple (AAPL) responded to the Department of Justice’s lawsuit by claiming that it is “simply not true.” I’d put money that it will settle pretty quickly