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  • ETF Tracker Newsletter For April 12, 2019

    ETF Tracker StatSheet

    Bank Earnigns Stoke Markets

    [Chart courtesy of]

    1. Moving the markets

    Yesterday’s uneasiness about the upcoming earnings season vanished this morning, as healthy results by JP Morgan boosted confidence in the economy in general, at least that’s how the computer algos reacted.

    On the other side, Wells Fargo’s results were in line, but the mortgage side of their business continued to suffer with those numbers being the worst since the Financial Crisis.

    Keep in mind, however, that it’s still too early to make any judgment as to how this earnings season will unfold. Expectations have been lowered, so it’s much easier for companies to beat them, which does not mean that the economy is on the mend.

    Remember, markets do not represent the economy, as this chart clearly demonstrates.

    Disney’s announcement about a new streaming service helped the Dow, and the markets overall, but sent competitor Netflix south. Interestingly, heading further north were bond yields with the 10-year closing up 6 basis points to end the session at 2.56%. They have now reached the level they had before the last dovish FOMC meeting, which was the main contributor to the recent rally.

    Be that as it may, the major indexes rallied across the board with the S&P 500 managing to regain its 2,900 level. Any more decent earnings news and odds are increasing that the index will take out its 2018 highs (2,941).