Crude oil, both WTi and Brent, remained under pressure throughout the day. With growth in Germany showing a contraction for the second quarter, who is Russia's second largest trading partner, some of the negative price movement today was certainly attributed to a lack of demand. Additionally, current Iraqi Prime Minister Al-Maliki announced that he was stepping down according to multiple news reports, which would reduce potential supply disruptions in the near-term.
The S&P 500 (SPX) remained higher, thanks to the further diminishment of geopolitical risk in both Iraq and Ukraine. The 1951-1955 zone proved to still be a stiff level of resistance. Health care led today's session with utilities closely behind, thanks to a drop in interest rates. Jobless claims rose to 311,000 last week. The past six weeks of claims have been erratic, as is normal during this part of the year.
Tomorrow's Financial Outlook
Tomorrow will be the busiest day of the week for economic reports. On tap are the producer price index for July, TIC flows for June, the August NY manufacturing survey, industrial production from July, and preliminary August consumer confidence. Inputs prices are expected to slow further in July, forecasting a continued drop in consumer inflation for the month. On the other hand, both consumer confidence and industrial production are expected to rise.
Early tomorrow morning, the UK will be the last major developed country to report its economic growth for the second quarter. Thus far, the results have been very lackluster. Growth is expected to rise at a quarterly rate of 0.8%, the same as the quarter prior.
The only major earnings report scheduled for tomorrow is Estee Lauder (EL).
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