EAT Brinker International Inc

Investors will have a lot to digest today. In addition to earnings reports from a host of major companies, we got a solid March Durable Good report that was broadly inline with expectations

Beyond the U.S. shores, we got a lackluster GDP growth report from the U.K., and a rating agency downgraded its outlook for Japan's economy to negative. The positive tone of the Durable Goods and earnings reports should help stocks sustain the positive momentum from yesterday.

All eyes will be on the Fed today. The FOMC, the central bank's policy-making committee, will issue its statement at the end of a two-day meeting today. With the Fed Funds rate not expected to change and the $600 billion bond-purchase program (QE2) expected to conclude at its scheduled end date in June, no surpirses are expected from the FOMC statement.

The novelty factor this time around is Ben Bernanke's news conference this afternoon -- a first for the Fed. Bernanke will be trying his best to stay on message so as not to rattle the markets. But the news people will be trying to size up the Fed's exit plans. A number of Fed officials have been airing their views in recent days on the subject. It will be instructive to have Bernanke's own take on the subject.

I am not looking for major surprises from Bernanke's news conference. But aside from the event's novelty factor, this will be an opportunity for the Fed Chief to educate the markets about his and the FOMC's thinking. We will all be bettter off if Bernanke dons his professor's hat in today's event and walks us through how the 'exit plan' should transpire.

On the earnings front, Boeing (BA) beat on EPS, but missed on revenue. Boeing's peer defense contractor, Northrop Grumman (NOC) did the same, coming ahead on EPS, but missing revenue expectations. Baker Hughes (BHI), the oilfield service giant, beat EPS and revenue expectations. Brinker International (EAT), the operator of the Chili's restaurant chain, also came ahead of revenue and earnings expectations. We had a major earnings miss from Amazon (AMZN) yesterday after the close, as the online retailer's aggressive expansion spending weighed on margins.

This morning's solid Durable Goods report gives us a good look at business investments in the last month of the first quarter. Tomorrow's GDP report, expected to show growth in the 2% vicinity, will show that business investments remains a key growth driver for the economy.

Earnings and economic reports notwithstanding, stocks will remain focused on the Fed today.
 
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