Stocks Rally on Upbeat Earnings, Economic Indicators Remain Mixed

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.)