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US Stocks Continue to Rally; Economic Growth in Europe Falls Short
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Early this morning, the preliminary report of eurozone second quarter GDP was a stinker. Growth was below expectations, and in some cases negative, for the three largest countries in the region: Italy, France, and Germany. European sovereign bonds rallied with the 10-year German Bund yield falling below 1% for the first time ever and beginning to approach the Swiss and Japanese rates near 0.5%. Most European equities rallied early this morning on news from Russian President Vladimir Putin's press conference in Yalta that his country will do all it can to stop the conflict in Ukraine.

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).

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 Continue to Rally; Economic Growth in Europe Falls Short
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Early this morning, the preliminary report of eurozone second quarter GDP was a stinker. Growth was below expectations, and in some cases negative, for the three largest countries in the region: Italy, France, and Germany. European sovereign bonds rallied with the 10-year German Bund yield falling below 1% for the first time ever and beginning to approach the Swiss and Japanese rates near 0.5%. Most European equities rallied early this morning on news from Russian President Vladimir Putin's press conference in Yalta that his country will do all it can to stop the conflict in Ukraine.

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).

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
US Stocks Continue to Rally; Economic Growth in Europe Falls Short
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Early this morning, the preliminary report of eurozone second quarter GDP was a stinker. Growth was below expectations, and in some cases negative, for the three largest countries in the region: Italy, France, and Germany. European sovereign bonds rallied with the 10-year German Bund yield falling below 1% for the first time ever and beginning to approach the Swiss and Japanese rates near 0.5%. Most European equities rallied early this morning on news from Russian President Vladimir Putin's press conference in Yalta that his country will do all it can to stop the conflict in Ukraine.

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).

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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