Markets Take a Beating Post-Fed
Today's financial recap and tomorrow's financial outlook.
US markets traded flat into the Fed announcement, but began to rapidly sell off during Ben Bernanke’s press conference. While the Fed did not announce any change in monetary policy, its updated economic projections may be signaling rate hikes and/or tapering of QE activity. The S&P 500 (INDEXSP:.INX) finished the day down 1%, while the 10-year US Treasury yield jumped 13 bps to 2.31% after the announcement. This is the first time the 10-year has pushed through 2.3% since March 2012
The Nikkei 225 (INDEXNIKKEI:NI225) jumped 1.83% on the day. The Japanese index has bounced nearly 6.5% in the last four secessions since entering bear market territory.
The EIA petroleum report was released this morning, and crude inventories rose by 313,000 last week. Crude finished slightly lower on the day.
Tesla Motors Inc (NASDAQ:TSLA) announced that it will be recalling 800 Model S cars. After trading down early in the day, the electric car manufacturer finished the day up more than 1%. In tech, BlackBerry (NASDAQ:BBRY) was downgraded to underperform by Bernstein Research today; shares traded down 5% on the news. The company is due to release earnings on July 28.
Tomorrow's Financial Outlook
The European Union PMI composite flash will be released tomorrow at 4:00 a.m. EDT. Germany and France will both be releasing their flash reports at 3:30 a.m. EDT.
US weekly jobless claims will be released at 8:30 a.m. EDT. Initial claims are expected to come in at 340,000.
US existing home sales will be released at 10:00 a.m. EDT. Sales are expected to come in at 5 million, slight better than last month. The Philadelphia Fed survey will also be released at 10:00 a.m. EDT. The index is expected to report a reading of -1.0.Oracle Corporation (NASDAQ:ORCL) will be releasing earnings tomorrow. Analysts expect earnings per share of $0.85.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.