On Thursday the European Central Bank decided to cut its refinancing rate and subsequently caused the euro to fall and government bond prices to rise. Along with this decision Mario Draghi commented on the ECB’s readiness to act further if necessary. In the US the markets rallied after an encouraging report was released saying that jobless claims dropped to a five-year low. The S&P 500 once again reached a record high on Thursday. In corporate news, Intel (INTC) picked their new CEO and saw shares rise and LinkedIn (LNKD) saw an increase in profit but its yearly outlook remains weak. AIG (AIG) reported a drop in Q1 income but still beat expectations on Wall Street. It was also shared on Thursday that the US trade deficit fell to $38.8 billion in March.
Word on the Street
- ECB cut causes the euro to decline sharply against the dollar.
- Jobs market sees encouraging news with a drop in unemployment claims.
- Tech stocks including Intel (INTC) advance on earnings and announcements.
- LinkedIn (LNKD) posts a disappointing revenue forecast and shares fall after hours.
- The US Government Declares War on Novartis AG (NVS).
- Kraft Foods (KRFT) beats expectations from the Street with quarterly earnings.