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US Stocks Shrug Off Yesterday's Weakness
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

European equities closed the day down more than 0.75% across the board. In the UK, a survey of retail sales in June showed a shocking drop from the prior month, which caused the country's sovereign bonds to post large gains.

After yesterday's deep sell-off late in the day that recorded a number of technical reversal signals, US stocks opened up negative to start the session, but ended up creeping higher throughout the day. Even though sellers appeared near the end of the day, the market was able to post solid gains across the board. Health-care stocks remained strong performers, up 1.08% as a group, and lead the S&P 500 (INDEXSP:.INX). Tech stocks also performed well.

The final estimate of first-quarter GDP showed a quarterly annualized contraction of 2.9%, the third-worst single quarter in the last 50 years. That is down from the prior two estimates of 0.1% and -1.0%. The drop was mainly attributed to a severe downward revision to health-care spending in the quarter as a result of the implementation of the Affordable Care Act. Economists had expected GDP to show a 1.8% contraction. Durable goods orders for May fell 1.0% from the prior month, the expectation was for no change. Once large aircraft orders were removed, orders only fell 0.1%, still below the expected.

The Department of Commerce will now allow shale companies to export an extremely light crude oil called condensate. This benefited two companies in particular, Pioneer Natural Resources (NYSE:PXD) and Enterprise Products Partners (NYSE:EPD). If the plan is fully approved, it would allow US refiners to export oil for the first time in 40 years.

Late in the session the New York Attorney General announced that it was pursuing a securities fraud lawsuit against Barclays (NYSE:BCS). The suit detailed how the bank gave preferential treatment to high-frequency trading firms with its dark-pool business. Barclays runs one of the world's largest dark pools.

Tomorrow's Financial Outlook

With today's final revision to first-quarter GDP showing a severe drop in personal spending, tomorrow's May consumer inflation and personal consumption report will garner even more attention. The personal consumption expenditure inflation gauge is expected to rise 1.8% from a year ago after rising 1.6% in the month prior. Similar price gains were seen in the consumer and producer price indices earlier this month. Personal spending is expected to rise 0.4% month-on-month.

There are no major events scheduled overnight that should affect risk assets. The Bank of England may publish its recommendation for the government's Financial Policy Committee on how to control excessive gains in the country's home prices.

Nike (NYSE:NKE), Lennar Homes (NYSE:LEN), and ConAgra Foods (NYSE:CAG) are all scheduled to report earnings tomorrow. The first two are very important. Nike has large global exposure to consumers and its earnings are a bellwether for economic activity. Lennar is levered to the domestic single-family home market.

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.

US Stocks Shrug Off Yesterday's Weakness
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

European equities closed the day down more than 0.75% across the board. In the UK, a survey of retail sales in June showed a shocking drop from the prior month, which caused the country's sovereign bonds to post large gains.

After yesterday's deep sell-off late in the day that recorded a number of technical reversal signals, US stocks opened up negative to start the session, but ended up creeping higher throughout the day. Even though sellers appeared near the end of the day, the market was able to post solid gains across the board. Health-care stocks remained strong performers, up 1.08% as a group, and lead the S&P 500 (INDEXSP:.INX). Tech stocks also performed well.

The final estimate of first-quarter GDP showed a quarterly annualized contraction of 2.9%, the third-worst single quarter in the last 50 years. That is down from the prior two estimates of 0.1% and -1.0%. The drop was mainly attributed to a severe downward revision to health-care spending in the quarter as a result of the implementation of the Affordable Care Act. Economists had expected GDP to show a 1.8% contraction. Durable goods orders for May fell 1.0% from the prior month, the expectation was for no change. Once large aircraft orders were removed, orders only fell 0.1%, still below the expected.

The Department of Commerce will now allow shale companies to export an extremely light crude oil called condensate. This benefited two companies in particular, Pioneer Natural Resources (NYSE:PXD) and Enterprise Products Partners (NYSE:EPD). If the plan is fully approved, it would allow US refiners to export oil for the first time in 40 years.

Late in the session the New York Attorney General announced that it was pursuing a securities fraud lawsuit against Barclays (NYSE:BCS). The suit detailed how the bank gave preferential treatment to high-frequency trading firms with its dark-pool business. Barclays runs one of the world's largest dark pools.

Tomorrow's Financial Outlook

With today's final revision to first-quarter GDP showing a severe drop in personal spending, tomorrow's May consumer inflation and personal consumption report will garner even more attention. The personal consumption expenditure inflation gauge is expected to rise 1.8% from a year ago after rising 1.6% in the month prior. Similar price gains were seen in the consumer and producer price indices earlier this month. Personal spending is expected to rise 0.4% month-on-month.

There are no major events scheduled overnight that should affect risk assets. The Bank of England may publish its recommendation for the government's Financial Policy Committee on how to control excessive gains in the country's home prices.

Nike (NYSE:NKE), Lennar Homes (NYSE:LEN), and ConAgra Foods (NYSE:CAG) are all scheduled to report earnings tomorrow. The first two are very important. Nike has large global exposure to consumers and its earnings are a bellwether for economic activity. Lennar is levered to the domestic single-family home market.

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.

US Stocks Shrug Off Yesterday's Weakness
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

European equities closed the day down more than 0.75% across the board. In the UK, a survey of retail sales in June showed a shocking drop from the prior month, which caused the country's sovereign bonds to post large gains.

After yesterday's deep sell-off late in the day that recorded a number of technical reversal signals, US stocks opened up negative to start the session, but ended up creeping higher throughout the day. Even though sellers appeared near the end of the day, the market was able to post solid gains across the board. Health-care stocks remained strong performers, up 1.08% as a group, and lead the S&P 500 (INDEXSP:.INX). Tech stocks also performed well.

The final estimate of first-quarter GDP showed a quarterly annualized contraction of 2.9%, the third-worst single quarter in the last 50 years. That is down from the prior two estimates of 0.1% and -1.0%. The drop was mainly attributed to a severe downward revision to health-care spending in the quarter as a result of the implementation of the Affordable Care Act. Economists had expected GDP to show a 1.8% contraction. Durable goods orders for May fell 1.0% from the prior month, the expectation was for no change. Once large aircraft orders were removed, orders only fell 0.1%, still below the expected.

The Department of Commerce will now allow shale companies to export an extremely light crude oil called condensate. This benefited two companies in particular, Pioneer Natural Resources (NYSE:PXD) and Enterprise Products Partners (NYSE:EPD). If the plan is fully approved, it would allow US refiners to export oil for the first time in 40 years.

Late in the session the New York Attorney General announced that it was pursuing a securities fraud lawsuit against Barclays (NYSE:BCS). The suit detailed how the bank gave preferential treatment to high-frequency trading firms with its dark-pool business. Barclays runs one of the world's largest dark pools.

Tomorrow's Financial Outlook

With today's final revision to first-quarter GDP showing a severe drop in personal spending, tomorrow's May consumer inflation and personal consumption report will garner even more attention. The personal consumption expenditure inflation gauge is expected to rise 1.8% from a year ago after rising 1.6% in the month prior. Similar price gains were seen in the consumer and producer price indices earlier this month. Personal spending is expected to rise 0.4% month-on-month.

There are no major events scheduled overnight that should affect risk assets. The Bank of England may publish its recommendation for the government's Financial Policy Committee on how to control excessive gains in the country's home prices.

Nike (NYSE:NKE), Lennar Homes (NYSE:LEN), and ConAgra Foods (NYSE:CAG) are all scheduled to report earnings tomorrow. The first two are very important. Nike has large global exposure to consumers and its earnings are a bellwether for economic activity. Lennar is levered to the domestic single-family home market.

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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