Stocks Rally on China's Trade Surplus and Positive Earnings News

Strategic Insights -

Stocks continued their upward trend, with markets logging gains through to the session's half, as data on China's trade helped alleviate concerns over the economy's slowing activity. The news was complemented by positive earnings reports, including Microsoft's acquisition of Skype and Google's potential music download service. Abbot Laboratories' Humira treatment met the main goal of a late-stage trial, while Whirlpool's dryers were cleared of confusion claims by LG.

Key Takeaways:

  • China logged a trade surplus of $11.4 billion in April, nearly four times higher than expected, according to Business Spectator.
  • U.S. import prices rose 2.2% in April, the first time prices have risen above 2% in consecutive months since June 2008, as reported by MarketWatch.
  • Microsoft will buy Skype for $8.5 billion, with the acquisition expected to support Skype on other software platforms.
  • Abbot Laboratories' Humira treatment for ulcerative colitis met the main goal of a late-stage trial, with 16.5% of patients treated with Humira achieving clinical remission compared to 9.3% on placebo.
  • Google could announce a music download service, competing with Apple and Amazon, as early as today at its Google I/O developers conference in San Francisco.
  • Whirlpool's dryers were cleared of confusion claims by LG, with the Court ruling that Whirlpool established its dryers use steam and LG failed to provide credible evidence.
  • Boston Scientific announced the retirement of Ray Elliott, with a special CEO search committee formed to select the company's next President and CEO.
  • Goldman Sachs cut its estimated losses due to legal claims by 21% for the first quarter, with the firm's quarterly filing showing "reasonably possible" losses from lawsuits dropped from $3.4 billion to $2.7 billion.
  • Wal-Mart Stores' potential acquisition of Massmart may be derailed due to local procurement targets in South Africa, with officials hearing testimony on the matter.

Statistics:

  • U.S. import prices rose 2.2% in April, with a 2.7% rise in March and a 1.6% rise expected by economists.
  • Microsoft will buy Skype for $8.5 billion, with the acquisition expected to support Skype on other software platforms.
  • Google could announce a music download service, which could compete with Apple and Amazon's music services.
  • Whirlpool's dryers were cleared of confusion claims by LG, with the Court ruling that Whirlpool established its dryers use steam and LG failed to provide credible evidence.
  • Goldman Sachs cut its estimated losses due to legal claims by 21% for the first quarter, with the firm's quarterly filing showing "reasonably possible" losses from lawsuits dropped from $3.4 billion to $2.7 billion.

Sources:

  • Business Spectator
  • MarketWatch
  • MidnightTrader via COMTEX
  • Reuters
  • Bloomberg
  • Thomson Reuters
  • Comtex SmarTrend Alert (AAPL, BSX, CRZO)