By Alex Eule |
Monday, April 17
No
Fear. With
earnings about to hit full steam, investors now have plenty to think about
beyond inflation, interest rates, and yield curves. Earnings season has a way
of returning investors' attention to the fundamentals. And with the big banks,
thus far, surprising to the upside, there's brewing optimism about results.
More on that below.
Today, stocks held their own, with the major
indexes all rising about 0.3%. That's despite new attention to the debt ceiling
and the growing threat of a protracted standoff in Washington.
“Let me be clear: a no-strings-attached debt
limit increase cannot pass," U.S. Speaker Kevin McCarthy
said today during a speech at
the New York Stock Exchange. "Debt limit negotiations are an
opportunity to examine our nation’s finances."
The White House has said it won't negotiate
over the debt ceiling issue. After McCarthy's speech, Senate Majority
Leader Chuck Schumer (D, N.Y.) said that
the speaker was playing a "risky and dangerous game."
"If Speaker McCarthy doesn't change his
course, he could well take this country to default," Schumer said.
Investors aren't yet paying attention to the
back and forth, even though the last real debt ceiling battle in 2011 caused
tumbling markets and a downgrade of U.S. debt.
Today, stocks rallied in the afternoon to move
into positive territory on the day. The CBOE Volatility Index, better
known as the VIX, or the fear index, closed under 17 today, near its lowest
level in three years.
Investors are feeling calm. Now corporate
earnings need to deliver.
DJIA: +0.30% to 33,987.18
S&P 500: +0.33% to 4,151.32
Nasdaq: +0.28% to 12,157.72
The Hot Stock:
M&T Bank +7.8%
The Biggest Loser: State Street -9.2%
Best Sector: Real Estate +2.3%
Worst Sector: Energy -1.2%
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