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T3's Take 3: Retail Sales Stink, Iran Strikes a Deal, and Greek Islands Are for Sale


Today's financial recap and tomorrow's financial outlook.

Today at T3 Live

T3 Live will be hosting its first annual Finance Festival and you're invited!

The event will be held November 6-8 at the Mayfair Hotel & Spa in Miami, Florida, just minutes from Miami beach.

We'll kick off Friday evening with a VIP dinner followed by a weekend full of insightful keynote discussions, great food, and what promises to be the party of the year!

Click to Learn more about T3 Live's Finance Festival

Slower US Growth?

Retail sales numbers for June were released this morning, missing on all accounts. The drop raised concerns of a drop in economic growth. Sales slipped 0.3% last month, its lowest reading since February. May's 1.2% reading was also revised down to 1%.

Economist Alan MacEachin stated that "strains on households budgets such rising housing and healthcare-related costs may be crowding out purchases of retail goods."

The weak sales numbers, along with signs of a softening labor market could impact the Fed's rate hike schedule. Mr MacEachin believes the Fed has no basis for raising rates in September.

The dollar fell against major currencies following the release of the data. US treasury yields fell slightly as well.

However, not all was lost as US markets rallied today. The S&P 500 and DJIA gained about 0.4%, with the NASDAQ finishing up 0.7%, led by the hot biotechnology sector, which hit another all-time high today.

JPMorgan (JPM) and Wells Fargo (WFC) released their earnings reports before the bell this morning, and the stocks had modest rallies.

Iran Strikes an Oil Deal

20 months after negotiations began to curb Iran's nuclear program, President Obama announced that a deal was made. The President stated that the agreement met the goals he had in place throughout negotiations. Iranian President Hussan Rouhani praised the deal, announcing on television that "negotiators have reached a good agreement and I announce to our people that our prayers have come true."

The deal will limit Iran's nuclear activities in exchange for the country receiving relief from sanctions and being allowed to continue its atomic program for peaceful purposes.

Iran will reduce its number of centrifuges by two-thirds, ban enrichment at key facilities, and limit uranium R&D to the Natanz facility. Iran will be required to ship spent fuel out of the country forever, and allow inspectors access in perpetuity.

US Congress has 60 days to review the agreement, at which it will vote. President Obama stated that he will veto any legislation that prevents successful implementation of the deal.

Greece Islands Up for Sale

News reports indicate Greece will have to sell off  50 billion euros of valuable Greek assets as part of its bailout deal over the weekend. Officials in Athens may be forced to auction off Greek islands, nature preserves, and perhaps even Greece's ancient ruins.

Georgios Daremas, adviser to the Greek Ministry of Labor, equated the prospect as saying to sell the memory of their ancestors, calling it "an idea to humiliate Greeks."

Germany proposed the idea of locking up Greece's assets into a special fund, as a method of guaranteeing repayment on its loans to Greece. The German Finance Ministry suggested moving titles to Greek assets to an external fund in order to prevent Greece from backing out of their sales. At the time of the country's first bailout in 2010, Greece privatized 50 billion euros worth of property under the agreement terms, of which only 3.2 billion euros were received to date.

Bloomberg reported earlier today that Greek islands were starting at prices around $3.5 million USD.

Wednesday's Financial Outlook

US economic data for tomorrow will include MBA mortgage applications, PPI, industrial & manufacturing production, capacity utilization, DOE oil reports, and the Fed's Beige Book.

Most importantly, Fed Chair Janet Yellen will delivery her testimony to the house financial panel tomorrow.

Overseas data includes Britain's employment report, the Canadian rate decision, and New Zealand's consumer price index.

Bank of America (BAC), BlackRock (BLK), Delta Airlines (DAL), PNC (PNC), and US Bancorp (USB) will announce earnings before the open. After the close Intel (INTC), Kinder Morgan (KMI), and Netflix (NFLX) will release their numbers.
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