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US Stocks Continue to Power Higher on Positive Payrolls Data
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US markets continued to trend strongly higher on the holiday-shortened session helped by better-than-expected payroll growth from June. Industrials and consumer discretionary stocks performed very strongly. Rate-sensitive areas such as REIT's, utilities, and telco servicers all fared poorly due to rising Treasury rates. Short-term Treasuries fared the worst as market participants began to price in a faster pace of rate increases. Similarly, bank stocks outperformed because rising intermediate and short-term rates benefit their net interest income so long as its funding rates remain near zero.

US equity trading closed early at 1:00 p.m. EDT and bond trading at 2:00 p.m.

The ECB left rates on hold as expected by every economist. In a post-meeting press release it announced further details for its longer-term financing operations and asset-backed securities purchases. The EURUSD fell, but more likely due to a higher dollar (which was responding to rising Treasury yields), and not because participants were selling the euro.

Nonfarm payrolls rose by 288,000 in June, echoing a similar 281K private payroll growth seen in yesterday's ADP report. The consensus economist estimate was 215K, but that figure had been revised up from 205K on Tuesday. The unemployment rate fell to 6.1%, better than the 6.3% expected, due to a substantial drop in household unemployment.

Shares of pet retailer PetSmart (NASDAQ:PETM) rose 12.53% to $67.30 after activist investment firm Jana Partners announced it took a 9.9% stake in the company. In its 13-D filing with the SEC, Jana made demands for operating improvements and returns of capital to PetSmart shareholders.

Tomorrow's Financial Outlook

US markets will be closed tomorrow for the Fourth of July holiday. There are no reports scheduled for Monday.

Other global markets will be open, however, although trading should be muted in Europe with most US firms taking the day off. German factory orders for May is the only notable economic report scheduled for tomorrow.


Twitter: @Minyanville

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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 Power Higher on Positive Payrolls Data
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US markets continued to trend strongly higher on the holiday-shortened session helped by better-than-expected payroll growth from June. Industrials and consumer discretionary stocks performed very strongly. Rate-sensitive areas such as REIT's, utilities, and telco servicers all fared poorly due to rising Treasury rates. Short-term Treasuries fared the worst as market participants began to price in a faster pace of rate increases. Similarly, bank stocks outperformed because rising intermediate and short-term rates benefit their net interest income so long as its funding rates remain near zero.

US equity trading closed early at 1:00 p.m. EDT and bond trading at 2:00 p.m.

The ECB left rates on hold as expected by every economist. In a post-meeting press release it announced further details for its longer-term financing operations and asset-backed securities purchases. The EURUSD fell, but more likely due to a higher dollar (which was responding to rising Treasury yields), and not because participants were selling the euro.

Nonfarm payrolls rose by 288,000 in June, echoing a similar 281K private payroll growth seen in yesterday's ADP report. The consensus economist estimate was 215K, but that figure had been revised up from 205K on Tuesday. The unemployment rate fell to 6.1%, better than the 6.3% expected, due to a substantial drop in household unemployment.

Shares of pet retailer PetSmart (NASDAQ:PETM) rose 12.53% to $67.30 after activist investment firm Jana Partners announced it took a 9.9% stake in the company. In its 13-D filing with the SEC, Jana made demands for operating improvements and returns of capital to PetSmart shareholders.

Tomorrow's Financial Outlook

US markets will be closed tomorrow for the Fourth of July holiday. There are no reports scheduled for Monday.

Other global markets will be open, however, although trading should be muted in Europe with most US firms taking the day off. German factory orders for May is the only notable economic report scheduled for tomorrow.


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 Stocks Continue to Power Higher on Positive Payrolls Data
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US markets continued to trend strongly higher on the holiday-shortened session helped by better-than-expected payroll growth from June. Industrials and consumer discretionary stocks performed very strongly. Rate-sensitive areas such as REIT's, utilities, and telco servicers all fared poorly due to rising Treasury rates. Short-term Treasuries fared the worst as market participants began to price in a faster pace of rate increases. Similarly, bank stocks outperformed because rising intermediate and short-term rates benefit their net interest income so long as its funding rates remain near zero.

US equity trading closed early at 1:00 p.m. EDT and bond trading at 2:00 p.m.

The ECB left rates on hold as expected by every economist. In a post-meeting press release it announced further details for its longer-term financing operations and asset-backed securities purchases. The EURUSD fell, but more likely due to a higher dollar (which was responding to rising Treasury yields), and not because participants were selling the euro.

Nonfarm payrolls rose by 288,000 in June, echoing a similar 281K private payroll growth seen in yesterday's ADP report. The consensus economist estimate was 215K, but that figure had been revised up from 205K on Tuesday. The unemployment rate fell to 6.1%, better than the 6.3% expected, due to a substantial drop in household unemployment.

Shares of pet retailer PetSmart (NASDAQ:PETM) rose 12.53% to $67.30 after activist investment firm Jana Partners announced it took a 9.9% stake in the company. In its 13-D filing with the SEC, Jana made demands for operating improvements and returns of capital to PetSmart shareholders.

Tomorrow's Financial Outlook

US markets will be closed tomorrow for the Fourth of July holiday. There are no reports scheduled for Monday.

Other global markets will be open, however, although trading should be muted in Europe with most US firms taking the day off. German factory orders for May is the only notable economic report scheduled for tomorrow.


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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