TUESDAY 4/29/14; DB; MRK; FOMC Meeting Begins; Consumer Confidence; EBAY; TWTR

Japan markets are closed for Showa Day. Markets are mixed in Aisa. China strongly rebounds. SSEC +0..8%. HSI +1.4%. Iron ore prices are at multi-year lows dragging the SPASX200 down -0.9%. The PBOC says they will establish a deposit insurance system and other banking reforms. China will allow some wealth management products to fail in an orderly way. PBOC wants to introduce private banks into the financial system.

Putin denounces the new sanctions as “cold war” tactics. Oil and gas company Gazprom says the sanctions will hurt over time. The Russia Foreign Ministry says the EU is under Washington’s thumb. Pro-Russian troops seize another police building in East Ukraine as the sanctions do not appear to have any bite. The Russian Ruble is 35.6470. This currency pair was 36 yesterday so the ruble is strengthening showing that the sanctions have no initial effect.

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After the closing bell, Twitter beats on earnings but the number of users disappoints analysts. Full year revenue guidance is lowered. TWTR is bludgeoned -9%. DVA reports a loss and is whacked -4% creating an unhappy ending to this movie. VPRT pukes -15% after reporting weak results. The GE-Alstom deal is approved and may be announced tomorrow. GE closes slightly down in AH’s. Panera beats on earnings but burns the bread by lowering guidance. PNRA drops -4.4%. Trulia misses big on EPS but slightly beats on the top line. TRLA -2%. STX beats on EPX but misses on top line and trades flat to negative. The IPO darling NDLS misses on top and bottom lines so it is beaten -6.5%.

EBAY beats on earnings 70 cents versus the 67 cents estimate and beats on the top line but guides lower. eBay also repatriated $9 billion in funds taking a tax hit of $3 billion which hints that management likely made a weak decision. Any amateur tax student could have provided better advice. Apple is a case in point that offered the bond sale today as a means to unlock the power of their cash hoard overseas. Right now, accountants and tax attorneys are knocking on eBay’s door handing out business cards professing they can provide better tax advice. EBAY pukes -4%. The stocks reporting earnings this evening are down across the board. TWTR is plummeting -10.5% so they can call the event hashtag collapse (#collapse).

VLO beats on earnings and pops to a new multi-year high. The integrated oils such as XOM and CVX, as well as the oil refiners such as VLO and TSO, are feeling love these days. XOM gains +0.3% printing new highs for the year today. Biopharma darling of long traders BMY beats on EPS but misses on the top line. Bristol-Myers Squibb’s cancer treatment nivolumab will proceed through the approval process more slowly than expected. BMY is beaten -3.6%.

North Korea is firing weaponry along the South Korean border. The construction and preparations for the Rio Olympics is badly behind schedule. Mercedes recalls 253K vehicles due to faulty lights. A poll shows that young Americans, disillusioned and disappointed with President Obama, are the least enthusiastic about voting in 14 years. Coldwater Creek receives court approval to proceed with a liquidation sale and continue closing stores.