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Stocks Rally on Upbeat Earnings, Economic Indicators Remain Mixed

Strategic Insights

— 1 min read

Stocks began the week on a positive note, driven by encouraging earnings from Ford Motor Co. (F) and UPS (UPS), as well as gains in European and Asian markets. However, a decline in February home prices, as reported by the S&P/Case Shiller composite index, may temper gains in trading today. Economists were surprised by the 0.2% decline in home prices, rather than the expected 0.3% drop.

Key Takeaways:

  • Ford Motor Co. (F) reported Q1 pre-tax EPS of $0.61, beating the Street's call for $0.50 and increasing 22% from Q1 2010.
  • Revenue was $33.1 billion, up $5 billion from Q1 2010 and exceeding the Street's estimate of $29.7 billion.
  • UPS (UPS) reported Q1 EPS of $0.88, ahead of the Thomson Reuters consensus call for $0.85, but missed the Street's sales estimate of $12.72 billion, reporting $12.58 billion.
  • UBS (UBS) provided a lift for financials with better-than-expected earnings.
  • Home prices are just above their 2009 low and roughly equal to those in 2003, as reported by the S&P/Case Shiller composite index.
  • The Conference Board's April consumer confidence figures could influence trading and are expected to be released at 10 a.m.
  • The Federal Reserve is set to begin a two-day monetary policy meeting, which will conclude with Chairman Ben Bernanke's first scheduled post-meeting press conference.

Statistics:

  • Ford Motor Co. (F) Q1 pre-tax EPS: $0.61
  • Ford Motor Co. (F) revenue: $33.1 billion
  • UPS (UPS) Q1 EPS: $0.88
  • UPS (UPS) sales: $12.58 billion
  • S&P/Case Shiller composite index decline: 0.2%
  • February home prices compared to 2009 low: just above
  • February home prices compared to 2003: roughly equal
  • UBS (UBS) earnings beat: not specified

Sources:

  • MidnightTrader via COMTEX
  • S&P/Case Shiller composite index
  • Ford Motor Co. (F) earnings report
  • UPS (UPS) earnings report
  • UBS (UBS) earnings report
  • Conference Board's April consumer confidence figures
  • Federal Reserve monetary policy meeting
  • SmarTrend Alert (Comtex News Network, Inc.)

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