Negative Data in the US, Positive Close on the US Markets 14th April
As earnings season starts and economic indicators are released, US Markets follow Asia and Europe and show gains across the board.
Toronto, Canada, April 14, 2016 (Newswire.com) - 14th April 2016
Cadwell & Schultz
Retail Sales were down by 0.3% in March and Wholesale prices fell to a 2-month low as earnings data from JP Morgan Chase surprised the markets. A 6.7% fall in earnings for the first quarter of 2016 did little to hurt the bank as the stock gained 4.23% over the course of the day.
Phil Davey, PR Manager
Negative Data in the US, Positive Close on the US Markets 14th April
As earnings season starts and economic indicators are released, US Markets follow Asia and Europe and show gains across the board.
Data released in the US on retail and wholesale prices and earnings data, despite negative, gave a ray of hope to investors and saw inflows continue to return to the equity markets.
Retail Sales were down by 0.3% in March and Wholesale prices fell to a 2-month low as earnings data from JP Morgan Chase surprised the markets. A 6.7% fall in earnings for the first quarter of 2016 did little to hurt the bank as the stock gained 4.23% over the course of the day.
The bank cited US Oil loans as the main reason for lower earnings and has added additional monies to the fund it instructed in February to cover any potential shortfall from its exposure to the oil sector. $713Mn has been added to the $500Mn set aside 2 months earlier. The fund has $529mn to cover its oil and gas exposure and $162Mn for its Metals and Mining portfolio.
Profits for the first quarter of 2016 had fallen from $5.91Bn to $5.52Bn, the bank looked to reductions in its banking and investment arm along with the fall in Oil prices and it estimates that its loan losses could double from $959Mn last year to $1.8Bn for the first quarter of 2016.
US Markets should continue the rally of yesterday as both Asia and Europe continue to remain in the green.
US Index Close 13th April:
S&P 500 – 2,082.42 +1.00%
Dow Jones – 17,908.25 +1.06%
NASDAQ – 4,947.42 +1.55%
Cadwell & Schultz’s team have been successfully investing in venture capital since 2006. Gaining considerable knowledge and expertise across a broad spectrum of business markets such as emerging and disruptive technology, communications, biotech, sustainable energy, internet technologies, medical and media. The Cadwell & Schultz team has nurtured an effective arena for discovering, building and developing new or growing ventures that have the potential to become world-class businesses. This optimal teamwork between thoughtful investment and fastidious management provides essential growth to entrepreneurs along with an outstanding source of exceptional deal flow for us and our investors.
Source: Caldwell & Schultz