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Bears Stay in Control for a Second Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US markets continued where they left off yesterday, the S&P 500 (INDEXSP:.INX) almost reaching a decline of 1%, which it has not done in nearly three months. Consumer staples took over the leadership role as it outperformed for a fifth straight day. Energy stocks also outperformed, after trailing the market for several days. This sector had experienced a spate of profit-taking in recent weeks after leading the market higher since May.

May job openings rose to 4.635 million from 4.445 million last month, marking the highest number of openings in seven years However, part of the increase was the result of a drop in hirings, so the increase was not completely positive.

European markets continued to break down today following poor full-year guidance from Air France-KLM (EPA:AF), because the company was unable to repatriate revenues from Venezuela. Italy was a notably weak performer, which is a good gauge of risk appetite in Europe. European bank stocks continue to be weak as investors prepare for further litigation from the US against the region's banks. The latest round of probes include Commerzbank (ETR:CBK) and Deutsche Bank (NYSE:DB).

Alcoa (NYSE:AA) was the first major company to report second quarter earnings, doing so after the close. The company reported EPS of $0.18 that was ahead of the $0.12 expected. Revenues declined by 0.2% from the prior year to $5.84 billion, but that was ahead of the $5.65 billion expected. Alcoa reaffirmed its full year 2014 forecast for global aluminum demand at 7%.

Tomorrow's Financial Outlook

The only event scheduled for tomorrow is the Fed's release of the minutes from its last FOMC meeting. Market participants will be looking to see if the minutes will provide any hints on why the Fed chose to ignore the recent increase in inflation. Additionally, investors and pundits will be looking for any thoughts on the future level of policy rates or an exit plan. The Treasury will sell $21 billion of 10-year notes in the afternoon.

Overnight the biggest catalyst for risk assets is the release of China's consumer and producer price indexes for June. Chinese economic data for the months of May and June has consistently beat expectations and the government has been active on the fiscal stimulus front. The one downside risk for this report is the continued decline in home prices. In June, property prices showed a broad-based decline, whereas they've seen consistent increases for more than two years.

There are no major earnings reports scheduled for tomorrow.

Twitter: @Minyanville

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.
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No positions in stocks mentioned.

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.

Bears Stay in Control for a Second Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US markets continued where they left off yesterday, the S&P 500 (INDEXSP:.INX) almost reaching a decline of 1%, which it has not done in nearly three months. Consumer staples took over the leadership role as it outperformed for a fifth straight day. Energy stocks also outperformed, after trailing the market for several days. This sector had experienced a spate of profit-taking in recent weeks after leading the market higher since May.

May job openings rose to 4.635 million from 4.445 million last month, marking the highest number of openings in seven years However, part of the increase was the result of a drop in hirings, so the increase was not completely positive.

European markets continued to break down today following poor full-year guidance from Air France-KLM (EPA:AF), because the company was unable to repatriate revenues from Venezuela. Italy was a notably weak performer, which is a good gauge of risk appetite in Europe. European bank stocks continue to be weak as investors prepare for further litigation from the US against the region's banks. The latest round of probes include Commerzbank (ETR:CBK) and Deutsche Bank (NYSE:DB).

Alcoa (NYSE:AA) was the first major company to report second quarter earnings, doing so after the close. The company reported EPS of $0.18 that was ahead of the $0.12 expected. Revenues declined by 0.2% from the prior year to $5.84 billion, but that was ahead of the $5.65 billion expected. Alcoa reaffirmed its full year 2014 forecast for global aluminum demand at 7%.

Tomorrow's Financial Outlook

The only event scheduled for tomorrow is the Fed's release of the minutes from its last FOMC meeting. Market participants will be looking to see if the minutes will provide any hints on why the Fed chose to ignore the recent increase in inflation. Additionally, investors and pundits will be looking for any thoughts on the future level of policy rates or an exit plan. The Treasury will sell $21 billion of 10-year notes in the afternoon.

Overnight the biggest catalyst for risk assets is the release of China's consumer and producer price indexes for June. Chinese economic data for the months of May and June has consistently beat expectations and the government has been active on the fiscal stimulus front. The one downside risk for this report is the continued decline in home prices. In June, property prices showed a broad-based decline, whereas they've seen consistent increases for more than two years.

There are no major earnings reports scheduled for tomorrow.

Twitter: @Minyanville

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.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

More From Minyanville Staff
Daily Recap
Bears Stay in Control for a Second Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US markets continued where they left off yesterday, the S&P 500 (INDEXSP:.INX) almost reaching a decline of 1%, which it has not done in nearly three months. Consumer staples took over the leadership role as it outperformed for a fifth straight day. Energy stocks also outperformed, after trailing the market for several days. This sector had experienced a spate of profit-taking in recent weeks after leading the market higher since May.

May job openings rose to 4.635 million from 4.445 million last month, marking the highest number of openings in seven years However, part of the increase was the result of a drop in hirings, so the increase was not completely positive.

European markets continued to break down today following poor full-year guidance from Air France-KLM (EPA:AF), because the company was unable to repatriate revenues from Venezuela. Italy was a notably weak performer, which is a good gauge of risk appetite in Europe. European bank stocks continue to be weak as investors prepare for further litigation from the US against the region's banks. The latest round of probes include Commerzbank (ETR:CBK) and Deutsche Bank (NYSE:DB).

Alcoa (NYSE:AA) was the first major company to report second quarter earnings, doing so after the close. The company reported EPS of $0.18 that was ahead of the $0.12 expected. Revenues declined by 0.2% from the prior year to $5.84 billion, but that was ahead of the $5.65 billion expected. Alcoa reaffirmed its full year 2014 forecast for global aluminum demand at 7%.

Tomorrow's Financial Outlook

The only event scheduled for tomorrow is the Fed's release of the minutes from its last FOMC meeting. Market participants will be looking to see if the minutes will provide any hints on why the Fed chose to ignore the recent increase in inflation. Additionally, investors and pundits will be looking for any thoughts on the future level of policy rates or an exit plan. The Treasury will sell $21 billion of 10-year notes in the afternoon.

Overnight the biggest catalyst for risk assets is the release of China's consumer and producer price indexes for June. Chinese economic data for the months of May and June has consistently beat expectations and the government has been active on the fiscal stimulus front. The one downside risk for this report is the continued decline in home prices. In June, property prices showed a broad-based decline, whereas they've seen consistent increases for more than two years.

There are no major earnings reports scheduled for tomorrow.

Twitter: @Minyanville

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.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

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