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Markets Melt Up to Start the Second Half of the Year, Puerto Rico Credit Rating Slashed
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Overnight, the official June Chinese manufacturing PMI rose to a level close to that of the private survey released last week. Most domestic Chinese markets were slightly higher overnight, although Hong Kong markets were closed. Additionally, the Japanese Tankan survey of large corporations' outlook for the second quarter jumped, but the increase was largely in line with expectations. The Nikkei (INDEXNIKKEI:NI225) posted the largest risk-adjusted gain overnight, and the yen was lower versus the US dollar and euro.

US stocks melted up on the first day of the second half of the year, with buyers continuing to push the market relentlessly higher. Small- and mid-cap stocks led for much of the day thanks to hefty new allocations, but ended only marginally ahead of their large-cap brethren. The health care, tech, and consumer discretionary sectors led the S&P 500 (INDEXSP:.INX) today, with utilities the lone decliner. Treasury yields were higher across the board. 3D printing stocks such as 3D Systems (NYSE:DDD), Stratasys (NASDAQ:SSYS) and ExOne (NASDAQ:XONE) were all up in excess of 10% in today's session.

Puerto Rico's credit rating was downgraded three levels by Moody's today. The country's credit is now assigned a B2 rating with a negative outlook. Additionally, the region's public power and water utilities credit ratings were also cut. Last week the governor signed a bill into law that allows certain public utilities to restructure their debt in a process that resembles filing for bankruptcy.

At 55.3, the national ISM manufacturing index was little changed in June versus May's 55.4 reading. The index was expected to hit 55.9%. The new orders component showed sizable growth, up to 58.9 from 56.9 in the month prior, which augurs well for increased economic activity in the months ahead. Auto sales for June rose to 16.92 million, the highest on a seasonally-adjusted annual basis since 2006. Sales were expected to decline to 16.38m. Porsche in particular had its best June sales month ever, up 11% from the month prior. US same-store sales rose 3.1% year-on-year in the week ending June 28, and rose 1.7% for the month of June.

Tomorrow's Financial Outlook

Tomorrow morning before the market open, the ADP private payrolls report for June will be released. Economists are expecting a net payroll gain of 205,000, after gains of 179,000 in the month prior. More importantly, Fed Chair Janet Yellen will give the opening remarks at an IMF conference in Washington at 11:00 a.m. EDT. Her press conference at the last FOMC meeting was very well-orchestrated, putting the markets at ease, which is exactly the opposite of how her first press conference would be characterized. Expect the composed Yellen tomorrow.

Australia's trade balance for May will be reported overnight and should have a major effect on Asian currencies. Recent trade reports from Thailand, South Korea, and Indonesia have shown larger overall growth than has been expected. The other report due out is the UK construction PMI.

The only two earnings reports for the week are scheduled for tomorrow, Constellation Brands (NYSE:STZ) and Greenbrier (NYSE:GBX).

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.

Markets Melt Up to Start the Second Half of the Year, Puerto Rico Credit Rating Slashed
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Overnight, the official June Chinese manufacturing PMI rose to a level close to that of the private survey released last week. Most domestic Chinese markets were slightly higher overnight, although Hong Kong markets were closed. Additionally, the Japanese Tankan survey of large corporations' outlook for the second quarter jumped, but the increase was largely in line with expectations. The Nikkei (INDEXNIKKEI:NI225) posted the largest risk-adjusted gain overnight, and the yen was lower versus the US dollar and euro.

US stocks melted up on the first day of the second half of the year, with buyers continuing to push the market relentlessly higher. Small- and mid-cap stocks led for much of the day thanks to hefty new allocations, but ended only marginally ahead of their large-cap brethren. The health care, tech, and consumer discretionary sectors led the S&P 500 (INDEXSP:.INX) today, with utilities the lone decliner. Treasury yields were higher across the board. 3D printing stocks such as 3D Systems (NYSE:DDD), Stratasys (NASDAQ:SSYS) and ExOne (NASDAQ:XONE) were all up in excess of 10% in today's session.

Puerto Rico's credit rating was downgraded three levels by Moody's today. The country's credit is now assigned a B2 rating with a negative outlook. Additionally, the region's public power and water utilities credit ratings were also cut. Last week the governor signed a bill into law that allows certain public utilities to restructure their debt in a process that resembles filing for bankruptcy.

At 55.3, the national ISM manufacturing index was little changed in June versus May's 55.4 reading. The index was expected to hit 55.9%. The new orders component showed sizable growth, up to 58.9 from 56.9 in the month prior, which augurs well for increased economic activity in the months ahead. Auto sales for June rose to 16.92 million, the highest on a seasonally-adjusted annual basis since 2006. Sales were expected to decline to 16.38m. Porsche in particular had its best June sales month ever, up 11% from the month prior. US same-store sales rose 3.1% year-on-year in the week ending June 28, and rose 1.7% for the month of June.

Tomorrow's Financial Outlook

Tomorrow morning before the market open, the ADP private payrolls report for June will be released. Economists are expecting a net payroll gain of 205,000, after gains of 179,000 in the month prior. More importantly, Fed Chair Janet Yellen will give the opening remarks at an IMF conference in Washington at 11:00 a.m. EDT. Her press conference at the last FOMC meeting was very well-orchestrated, putting the markets at ease, which is exactly the opposite of how her first press conference would be characterized. Expect the composed Yellen tomorrow.

Australia's trade balance for May will be reported overnight and should have a major effect on Asian currencies. Recent trade reports from Thailand, South Korea, and Indonesia have shown larger overall growth than has been expected. The other report due out is the UK construction PMI.

The only two earnings reports for the week are scheduled for tomorrow, Constellation Brands (NYSE:STZ) and Greenbrier (NYSE:GBX).

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
Markets Melt Up to Start the Second Half of the Year, Puerto Rico Credit Rating Slashed
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Overnight, the official June Chinese manufacturing PMI rose to a level close to that of the private survey released last week. Most domestic Chinese markets were slightly higher overnight, although Hong Kong markets were closed. Additionally, the Japanese Tankan survey of large corporations' outlook for the second quarter jumped, but the increase was largely in line with expectations. The Nikkei (INDEXNIKKEI:NI225) posted the largest risk-adjusted gain overnight, and the yen was lower versus the US dollar and euro.

US stocks melted up on the first day of the second half of the year, with buyers continuing to push the market relentlessly higher. Small- and mid-cap stocks led for much of the day thanks to hefty new allocations, but ended only marginally ahead of their large-cap brethren. The health care, tech, and consumer discretionary sectors led the S&P 500 (INDEXSP:.INX) today, with utilities the lone decliner. Treasury yields were higher across the board. 3D printing stocks such as 3D Systems (NYSE:DDD), Stratasys (NASDAQ:SSYS) and ExOne (NASDAQ:XONE) were all up in excess of 10% in today's session.

Puerto Rico's credit rating was downgraded three levels by Moody's today. The country's credit is now assigned a B2 rating with a negative outlook. Additionally, the region's public power and water utilities credit ratings were also cut. Last week the governor signed a bill into law that allows certain public utilities to restructure their debt in a process that resembles filing for bankruptcy.

At 55.3, the national ISM manufacturing index was little changed in June versus May's 55.4 reading. The index was expected to hit 55.9%. The new orders component showed sizable growth, up to 58.9 from 56.9 in the month prior, which augurs well for increased economic activity in the months ahead. Auto sales for June rose to 16.92 million, the highest on a seasonally-adjusted annual basis since 2006. Sales were expected to decline to 16.38m. Porsche in particular had its best June sales month ever, up 11% from the month prior. US same-store sales rose 3.1% year-on-year in the week ending June 28, and rose 1.7% for the month of June.

Tomorrow's Financial Outlook

Tomorrow morning before the market open, the ADP private payrolls report for June will be released. Economists are expecting a net payroll gain of 205,000, after gains of 179,000 in the month prior. More importantly, Fed Chair Janet Yellen will give the opening remarks at an IMF conference in Washington at 11:00 a.m. EDT. Her press conference at the last FOMC meeting was very well-orchestrated, putting the markets at ease, which is exactly the opposite of how her first press conference would be characterized. Expect the composed Yellen tomorrow.

Australia's trade balance for May will be reported overnight and should have a major effect on Asian currencies. Recent trade reports from Thailand, South Korea, and Indonesia have shown larger overall growth than has been expected. The other report due out is the UK construction PMI.

The only two earnings reports for the week are scheduled for tomorrow, Constellation Brands (NYSE:STZ) and Greenbrier (NYSE:GBX).

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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