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Market & Earnings Update - May 12, 2014

The market opened strongly this morning with hopes that after a decent first quarter of earnings, and winter weather woes in the rear view mirror, the economy and corporate earnings will show some slow and steady growth going forward. As we closed in on the last hour of trading, we saw the indexes hold on to their gains. The DJIA ended up 112.13 points to close at a new record high of 16,695.47. The Nasdaq closed up 1.24 % and the S&P 500 also touched on a new record closing at 1896.65.

Index

Weekly Return %

thru May 9, 2014

YTD Return %

thru 5.9.14

DJIA1

+0.4

Unch

NASDAQ Composite2

-1.3

-2.5

S&P 500 Index3

-0.1

+1.6

Bond Yields

May 9 Yield   & Weekly Change

Yield - %   a/o Dec 31, 2013

3-month T-bill

0.05           Unch

0.07

2-year Treasury

0.40             -0.02

0.38

10-year Treasury

2.62           +0.02

3.04

30-year Treasury

3.47             +0.10

3.96

Commodities

May 9 Price &   Weekly Change

Year end 2013

Oil per barrel4

   $99.71     +0.54

   $98.42

Gold per ounce5

$1,291.24+10.00

$1,201.50

Here are some highlights from Q1 earnings season:

  • Q1 earnings are expected to grow 5.4% over Q1 2013
  • With 90% of S&P 500 companies having reported, 69% have reported earnings above analyst expectations, beating the long-term average of 63% and above the average over the past four quarters of 66% (Thomson Reuters)
  • 53% of companies have reported Q1 2014 revenue above analyst expectations, below the long-term average of 61% and below the average over the past four quarters of 54%. Q2 guidance is still a bit weak but the early read is much better than recent quarters.

@LWMLLC