The stock market just might rack up its second weekly win in a row, depending on how today’s earnings-driven trading shakes out.
Folks sound happy that markets are zeroing in on quarterly results these days — and taking a bit of a break from obsessing over geopolitics.
Central bankers are back in the spotlight as well, with the Bank of England’s Mark Carney reviving his “unreliable boyfriend” routine and whacking the pound. So much for that post-Brexit-vote peak.
Federal Reserve Board Gov. Lael Brainard’s latest speech also ought to be grabbing everyone’s attention, says our call of the day, which comes from the Wolf Street financial blog’s Wolf Richter.
Brainard warned yesterday about “financial imbalances” in the economy, as well as “elevated” asset values across a range of markets, even after recent selloffs.
“It is rare to hear a Fed governor, and a dove in particular, list some of the biggest elements in the Everything Bubble as a concern. And the concern is not how to maintain it and keep it inflated, but how to tamp down on it gradually,” Richter writes.
He translates her Fed-speak as follows: “It is the time to tamp down on these ‘elevated’ asset prices that are putting banks at risk.”
And the Wolf Street word slinger, who has howled before about the Fed’s warnings, suggests markets are too complacent at the moment.
“The corporate bond market, particularly the junk-bond market JNK, -0.15% , is happily dreaming in La-La Land till the rude awakening,” he writes.
Go here to read Richter’s full post — and here for Brainard’s full speech.
Read more: Inflation expectations reach the highest in more than three years
And see: Rising interest rates don’t scare these bond pros
Key market gauges
Futures for the Dow industrials YMM8, -0.19% and S&P 500 ESM8, -0.19% are roughly flat, while those for the Nasdaq-100 NQM8, -0.62% are edging lower. The Dow DJIA, -0.17% , S&P SPX, -0.19% and Nasdaq Composite COMP, -0.47% are on track for weekly gains of 1.3% to 2%, as of yesterday’s close.
Asian markets were hit by the recent chip wreck, while European stocks SXXP, -0.12% are mixed. The dollar index DXY, +0.44% is gaining, as the 10-year Treasury yield TMUBMUSD10Y, +0.83% continues hanging out near a two-month high. Oil CLM8, -0.88% is falling as OPEC players meet, gold GCM8, -0.73% is also losing ground, and bitcoin BTCUSD, +3.21% is rallying to around $8,500.
See the Market Snapshot column for the latest action.
The chart
Which U.S. states are particularly rich in residents with good driving habits?
The West is the best, and the East is the worst, according to the chart above from insurance marketplace EverQuote. It appears in the company’s second annual EverDrive Safe Driving Report. (h/t Daily Shot)
See: Distracted driving worries people, but not enough to spark changes
The buzz
Big, bad banks: Wells Fargo WFC, +1.46% looks on track for a $1 billion hit, Barclays BARC, +0.37% CEO Jes Staley is getting fined for his attempts to unmask a whistleblower, and Deutsche Bank DBK, -1.18% accidentally sent out a $35 billion payment.
GE GE, +5.72% , Honeywell HON, +1.47% and Schlumberger SLB, -1.47% have posted earnings ahead of the open.
Pivotal Software PVTL, +0.00% is due to have its trading debut today after its IPO priced at the midpoint of an expected range.
See: Pivotal IPO — 5 things to know about the cloud software company
Qualcomm QCOM, +0.30% is cutting 4.4% of its worforce.
A PwC audit cleared Facebook’s FB, -0.18% privacy practices, despite that infamous Cambridge Analytica leak.
An American sorghum armada has done a U-turn at sea following Chinese tariffs.
There aren’t any top-tier U.S. economic reports expected, but the Chicago Fed’s Charles Evans is due to speak shortly after the opening bell.
Check out: MarketWatch’s Economic Calendar
As OPEC & Friends meet, traders are watching for support for more oil-output cuts, and the tweeter-in-chief sounds interested:
Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!
— Donald J. Trump (@realDonaldTrump) April 20, 2018
In Washington news, James Comey’s memos on his talks with President Trump are out, and Rudy Giuliani is in as a member of Trump’s legal team. Plus, the president reportedly isn’t a target of Special Counsel Robert Mueller’s investigation into Russian election meddling.
The quote
“Just about everybody dies by 114. ... We don’t know why, but that’s the rule.” — Storied investor Howard Marks highlights a key limit — and suggests it’s similar to how no economic recovery has lasted more than 10 years.
Forecasters have been noting our nine-year-old economic expansion could top the 10-year record set by the 1990s boom.
Opinion: It’s the beginning of the end for this economic expansion
Random reads
It’s 4/20, and the grass is greener for these “ganjapreneurs.”
Earth Day is this weekend, so Apple is showing off Daisy, its recycling robot.
Settle strong: Lance Armstrong to pay $5 million to end a fraud lawsuit.
Indiana woman explains TFW your spouse apparently tricks you into joining ISIS.
The U.K. didn’t raid a telecom linked to money laundering, citing its Tory donations.
Just-released files show rising alarm in Prince’s circle as the star’s health failed.
Arsene Wenger is leaving Arsenal after 22 years as manager.
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