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US Markets Churn Around Flat on Slow Volume Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

An article from Reuters suggested that it was unlikely the ECB would not take any new easing measures at its meeting next week dampened some of the bullish enthusiasm for global risk assets today. The report, citing sources, stated that the central bank is waiting for the August eurozone inflation data to be reported on Friday morning. The article also said that the ECB wanted a weaker Euro to help build a stronger Europe, and moving below $1.30/EUR would be helpful. Also in Europe, the ECB appointed Blackrock (BLK) as its consultant to help develop its ABS purchase program.

Other information during the day suggested that Russia was making a larger military push into Ukraine. The meeting yesterday to discuss trade between Ukraine and Russia spurred further communication. However, NATO cautioned that Russia was more overtly backing Ukrainian rebels, which was a troubling sign. Additionally, the FBI said today that it had evidence JPMorgan (JPM) and another US banks, as well as a number of European banks, were hacked by Russia, probably in retaliation to the economic sanctions over the last few months.

The S&P 500 (SPX) finished near unchanged after closing above 2,000 yesterday for the first time in history. Volume was abysmal for a fourth straight day and have been the worst full-day sessions of the year. Energy stocks took a bit of a breather after outperforming for the prior three days and utilities took over. Treasuries continued to rally behind the strength in German Bunds. The auction of $35 billion in new 5-year notes barely dented the buying demand. The 30-year Treasury yield fell 5.5bps to a year-to-date low of 3.10%.

Tomorrow's Financial Outlook

Tomorrow morning the first revision of second quarter GDP will be released. The June revisions due to the Commerce Department's quarterly durable goods survey have caused expectations to be increased over the last few days, but generally economists expect the annualized rate of growth to be revised down to 3.9% from the initial estimate of 4.0%. Inventory gains are still expected to be a large contributor to the growth in the quarter. Also scheduled to be released are July pending home sales and weekly jobless claims.

Because of the focus by the ECB on persistent disinflation in the eurozone, tomorrow's preliminary estimate of the August German consumer price index will draw a high amount of scrutiny. For the moment, the report will not generate a large negative price movement unless inflation were to come in only slightly below expectations. A large miss should only give cover to the ECB to enact its asset purchase program next week. However, some investors may feel uneasy that its action may not cause the inflation that it seeks. German unemployment and Chinese industrial profits are also scheduled to be reported.

Only four major US companies are scheduled to report earnings tomorrow. They are Dollar General (DG), Abercrombie & Fitch (ANF), Splunk (SPLK), and Omnivision (OVTI). Dollar General may draw increased scrutiny because of its rejected deal for Family Dollar (FDO).

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 Markets Churn Around Flat on Slow Volume Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

An article from Reuters suggested that it was unlikely the ECB would not take any new easing measures at its meeting next week dampened some of the bullish enthusiasm for global risk assets today. The report, citing sources, stated that the central bank is waiting for the August eurozone inflation data to be reported on Friday morning. The article also said that the ECB wanted a weaker Euro to help build a stronger Europe, and moving below $1.30/EUR would be helpful. Also in Europe, the ECB appointed Blackrock (BLK) as its consultant to help develop its ABS purchase program.

Other information during the day suggested that Russia was making a larger military push into Ukraine. The meeting yesterday to discuss trade between Ukraine and Russia spurred further communication. However, NATO cautioned that Russia was more overtly backing Ukrainian rebels, which was a troubling sign. Additionally, the FBI said today that it had evidence JPMorgan (JPM) and another US banks, as well as a number of European banks, were hacked by Russia, probably in retaliation to the economic sanctions over the last few months.

The S&P 500 (SPX) finished near unchanged after closing above 2,000 yesterday for the first time in history. Volume was abysmal for a fourth straight day and have been the worst full-day sessions of the year. Energy stocks took a bit of a breather after outperforming for the prior three days and utilities took over. Treasuries continued to rally behind the strength in German Bunds. The auction of $35 billion in new 5-year notes barely dented the buying demand. The 30-year Treasury yield fell 5.5bps to a year-to-date low of 3.10%.

Tomorrow's Financial Outlook

Tomorrow morning the first revision of second quarter GDP will be released. The June revisions due to the Commerce Department's quarterly durable goods survey have caused expectations to be increased over the last few days, but generally economists expect the annualized rate of growth to be revised down to 3.9% from the initial estimate of 4.0%. Inventory gains are still expected to be a large contributor to the growth in the quarter. Also scheduled to be released are July pending home sales and weekly jobless claims.

Because of the focus by the ECB on persistent disinflation in the eurozone, tomorrow's preliminary estimate of the August German consumer price index will draw a high amount of scrutiny. For the moment, the report will not generate a large negative price movement unless inflation were to come in only slightly below expectations. A large miss should only give cover to the ECB to enact its asset purchase program next week. However, some investors may feel uneasy that its action may not cause the inflation that it seeks. German unemployment and Chinese industrial profits are also scheduled to be reported.

Only four major US companies are scheduled to report earnings tomorrow. They are Dollar General (DG), Abercrombie & Fitch (ANF), Splunk (SPLK), and Omnivision (OVTI). Dollar General may draw increased scrutiny because of its rejected deal for Family Dollar (FDO).

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
US Markets Churn Around Flat on Slow Volume Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

An article from Reuters suggested that it was unlikely the ECB would not take any new easing measures at its meeting next week dampened some of the bullish enthusiasm for global risk assets today. The report, citing sources, stated that the central bank is waiting for the August eurozone inflation data to be reported on Friday morning. The article also said that the ECB wanted a weaker Euro to help build a stronger Europe, and moving below $1.30/EUR would be helpful. Also in Europe, the ECB appointed Blackrock (BLK) as its consultant to help develop its ABS purchase program.

Other information during the day suggested that Russia was making a larger military push into Ukraine. The meeting yesterday to discuss trade between Ukraine and Russia spurred further communication. However, NATO cautioned that Russia was more overtly backing Ukrainian rebels, which was a troubling sign. Additionally, the FBI said today that it had evidence JPMorgan (JPM) and another US banks, as well as a number of European banks, were hacked by Russia, probably in retaliation to the economic sanctions over the last few months.

The S&P 500 (SPX) finished near unchanged after closing above 2,000 yesterday for the first time in history. Volume was abysmal for a fourth straight day and have been the worst full-day sessions of the year. Energy stocks took a bit of a breather after outperforming for the prior three days and utilities took over. Treasuries continued to rally behind the strength in German Bunds. The auction of $35 billion in new 5-year notes barely dented the buying demand. The 30-year Treasury yield fell 5.5bps to a year-to-date low of 3.10%.

Tomorrow's Financial Outlook

Tomorrow morning the first revision of second quarter GDP will be released. The June revisions due to the Commerce Department's quarterly durable goods survey have caused expectations to be increased over the last few days, but generally economists expect the annualized rate of growth to be revised down to 3.9% from the initial estimate of 4.0%. Inventory gains are still expected to be a large contributor to the growth in the quarter. Also scheduled to be released are July pending home sales and weekly jobless claims.

Because of the focus by the ECB on persistent disinflation in the eurozone, tomorrow's preliminary estimate of the August German consumer price index will draw a high amount of scrutiny. For the moment, the report will not generate a large negative price movement unless inflation were to come in only slightly below expectations. A large miss should only give cover to the ECB to enact its asset purchase program next week. However, some investors may feel uneasy that its action may not cause the inflation that it seeks. German unemployment and Chinese industrial profits are also scheduled to be reported.

Only four major US companies are scheduled to report earnings tomorrow. They are Dollar General (DG), Abercrombie & Fitch (ANF), Splunk (SPLK), and Omnivision (OVTI). Dollar General may draw increased scrutiny because of its rejected deal for Family Dollar (FDO).

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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