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US Grows At Faster Pace Than Expected in Second Quarter
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The advance estimate of second quarter GDP showed in the US rose at a quarterly annualized pace of 4%. Economists had been expecting growth of 3% for the quarter. Most market participants had been anticipating growth that was below the 3% consensus. The first quarter was revised up to -2.1% from -2.9%. The above-consensus figure was helped by another record gain in inventories, likely a result of companies preparing for a strong post-weather snapback in activity. Business investment also rebounded strongly, much more than economists had expected.

The FOMC released its monthly monetary policy statement in the afternoon. It was modestly less hawkish than most had anticipated. The committee noted a recent improvement in inflation that had reduced the risk of sub-2% readings in the future. However, it stated that a broad range of labor market indicators suggested that significant labor underutilization - or low wage growth - remains. Most markets responded favorably to the statement.

Lastly, the ADP report of private payrolls showed a net gain of 218K  jobs in July. Economists expected a gain of 230K after 281K in the month prior. This suggests that the government nonfarm payrolls report on Friday should be near the consensus of 231K.

US stock indices traded erratically today, influenced heavily by the various economic reports. Shortly following the GDP report, the S&P 500 (SPX) bounced strongly most likely due to short positions betting on a poor result. The rally faded out as the day progressed, however, as interest rates continued to rise and the US dollar rallied. The 10-year Treasury yield rose as much as nine basis points to 2.55% during the day.

Twitter (TWTR) rallied sharply after it reported significantly better-than-expected second-quarter earnings results Tuesday after the close.

Other social media stocks like LinkedIn (LNKD) and Facebook (FB) rallied in reaction.

In other earnings news, we saw beats from American Tower (AMT) and Garmin (GRMN), and misses from HCA (HCA) and WellPoint (WLP).

Tomorrow's Financial Outlook

The most significant economic report scheduled for tomorrow is the Chicago regional manufacturing survey. The survey is highly sensitive to auto sales, which have been extremely strong of late. The index is expected to rise to 63.0 from 62.6 last month. Also scheduled to be reported is weekly jobless claims and the regional Milwaukee manufacturing survey.

The initial estimate for the July eurozone consumer price index will be released tomorrow morning. A similar report covering price changes in Germany reported today showed a larger than expected increase in prices from the month prior. Germany will report its monthly unemployment change and Canada will report its second quarter GDP.

Seventy six major US companies are scheduled to report earnings tomorrow, the busiest day of the week. Notable companies include Exxon Mobil (XOM), ConocoPhillips (COP), Mastercard (MA), T-Mobile (TMUS), Time Warner Cable (TWC), Tesla Motors (TSLA), LinkedIn (LNKD), and DirecTV (DTV).


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 Grows At Faster Pace Than Expected in Second Quarter
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The advance estimate of second quarter GDP showed in the US rose at a quarterly annualized pace of 4%. Economists had been expecting growth of 3% for the quarter. Most market participants had been anticipating growth that was below the 3% consensus. The first quarter was revised up to -2.1% from -2.9%. The above-consensus figure was helped by another record gain in inventories, likely a result of companies preparing for a strong post-weather snapback in activity. Business investment also rebounded strongly, much more than economists had expected.

The FOMC released its monthly monetary policy statement in the afternoon. It was modestly less hawkish than most had anticipated. The committee noted a recent improvement in inflation that had reduced the risk of sub-2% readings in the future. However, it stated that a broad range of labor market indicators suggested that significant labor underutilization - or low wage growth - remains. Most markets responded favorably to the statement.

Lastly, the ADP report of private payrolls showed a net gain of 218K  jobs in July. Economists expected a gain of 230K after 281K in the month prior. This suggests that the government nonfarm payrolls report on Friday should be near the consensus of 231K.

US stock indices traded erratically today, influenced heavily by the various economic reports. Shortly following the GDP report, the S&P 500 (SPX) bounced strongly most likely due to short positions betting on a poor result. The rally faded out as the day progressed, however, as interest rates continued to rise and the US dollar rallied. The 10-year Treasury yield rose as much as nine basis points to 2.55% during the day.

Twitter (TWTR) rallied sharply after it reported significantly better-than-expected second-quarter earnings results Tuesday after the close.

Other social media stocks like LinkedIn (LNKD) and Facebook (FB) rallied in reaction.

In other earnings news, we saw beats from American Tower (AMT) and Garmin (GRMN), and misses from HCA (HCA) and WellPoint (WLP).

Tomorrow's Financial Outlook

The most significant economic report scheduled for tomorrow is the Chicago regional manufacturing survey. The survey is highly sensitive to auto sales, which have been extremely strong of late. The index is expected to rise to 63.0 from 62.6 last month. Also scheduled to be reported is weekly jobless claims and the regional Milwaukee manufacturing survey.

The initial estimate for the July eurozone consumer price index will be released tomorrow morning. A similar report covering price changes in Germany reported today showed a larger than expected increase in prices from the month prior. Germany will report its monthly unemployment change and Canada will report its second quarter GDP.

Seventy six major US companies are scheduled to report earnings tomorrow, the busiest day of the week. Notable companies include Exxon Mobil (XOM), ConocoPhillips (COP), Mastercard (MA), T-Mobile (TMUS), Time Warner Cable (TWC), Tesla Motors (TSLA), LinkedIn (LNKD), and DirecTV (DTV).


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 Grows At Faster Pace Than Expected in Second Quarter
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

The advance estimate of second quarter GDP showed in the US rose at a quarterly annualized pace of 4%. Economists had been expecting growth of 3% for the quarter. Most market participants had been anticipating growth that was below the 3% consensus. The first quarter was revised up to -2.1% from -2.9%. The above-consensus figure was helped by another record gain in inventories, likely a result of companies preparing for a strong post-weather snapback in activity. Business investment also rebounded strongly, much more than economists had expected.

The FOMC released its monthly monetary policy statement in the afternoon. It was modestly less hawkish than most had anticipated. The committee noted a recent improvement in inflation that had reduced the risk of sub-2% readings in the future. However, it stated that a broad range of labor market indicators suggested that significant labor underutilization - or low wage growth - remains. Most markets responded favorably to the statement.

Lastly, the ADP report of private payrolls showed a net gain of 218K  jobs in July. Economists expected a gain of 230K after 281K in the month prior. This suggests that the government nonfarm payrolls report on Friday should be near the consensus of 231K.

US stock indices traded erratically today, influenced heavily by the various economic reports. Shortly following the GDP report, the S&P 500 (SPX) bounced strongly most likely due to short positions betting on a poor result. The rally faded out as the day progressed, however, as interest rates continued to rise and the US dollar rallied. The 10-year Treasury yield rose as much as nine basis points to 2.55% during the day.

Twitter (TWTR) rallied sharply after it reported significantly better-than-expected second-quarter earnings results Tuesday after the close.

Other social media stocks like LinkedIn (LNKD) and Facebook (FB) rallied in reaction.

In other earnings news, we saw beats from American Tower (AMT) and Garmin (GRMN), and misses from HCA (HCA) and WellPoint (WLP).

Tomorrow's Financial Outlook

The most significant economic report scheduled for tomorrow is the Chicago regional manufacturing survey. The survey is highly sensitive to auto sales, which have been extremely strong of late. The index is expected to rise to 63.0 from 62.6 last month. Also scheduled to be reported is weekly jobless claims and the regional Milwaukee manufacturing survey.

The initial estimate for the July eurozone consumer price index will be released tomorrow morning. A similar report covering price changes in Germany reported today showed a larger than expected increase in prices from the month prior. Germany will report its monthly unemployment change and Canada will report its second quarter GDP.

Seventy six major US companies are scheduled to report earnings tomorrow, the busiest day of the week. Notable companies include Exxon Mobil (XOM), ConocoPhillips (COP), Mastercard (MA), T-Mobile (TMUS), Time Warner Cable (TWC), Tesla Motors (TSLA), LinkedIn (LNKD), and DirecTV (DTV).


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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