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Deal Activity Keeps US Stocks in the Green
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US stocks were higher early today helped by strength from Apple (NASDAQ:AAPL) overnight. The tech giant announced an enterprise deal with IBM (NYSE:IBM) that had its stock up more than 3% in early trading. Gains were moderated to +0.75% during the session, but the benchmark indices were able to recover and finish right around where they started. Poor earnings from Bank of America (NYSE:BAC), the only major bank this quarter to miss earnings and trade negative, kept in check a further advance in the broad indices. China's second quarter GDP, released overnight, also gave global risk assets a positive tone to start the day.

Fed Chair Janet Yellen gave testimony to the House Financial Services Committee earlier today and her comments were very similar to yesterday's. She did face a tougher line of questioning from the committee members in the House, but no new information on monetary policy was revealed.

Industrial production rose 0.2% month-on-month in June, a bit slower than the +0.3% expected, and the prior month's growth was revised down by 0.1%. However, economists are optimistic that the orders pipeline will lead to stronger growth in the second half of the year. The NAHB survey of real-estate builders and agents showed a second straight month of broad-based increases, rising to 53 in July from 49 last month. This should lead to further outperformance by homebuilder stocks.

A few events in Portugal helped propel European bank stocks higher. Yesterday Rioforte Investments, a holding company within the Portuguese holding group Espirito Santo Financial Group (ESF), filed for bankruptcy protection after missing a repayment to Portugal Telecom on commercial paper. Portugal's central bank governor said that existing shareholders of Banco Espirito Santo (ELI:BES) would be willing to invest additional capital to avert a restructuring event. Other European banks that had been on shaky ground until now  have outperformed over the past two days as investors have become less concerned about weakness spreading to banks with direct or indirect ownership of the Espirito Santo group.

Tomorrow's Financial Outlook

Tomorrow morning, June new housing starts and building permits will be reported. New permit activity usually predates the former category by a few months. Starts are expected to increase to an annualized rate of 1.025 million from 1.001 million in the month prior while permits are expected to rise to 1.042 million from 991K. Weekly jobless claims will also be released.

The only major global economic report scheduled for tomorrow is the final estimate of June eurozone consumer prices. No change is expected.

Most of the last financial companies will report earnings tomorrow. These include Capital One Financial (NYSE:COF), Keycorp (NYSE:KEY), Fifth Third Bancorp (NASDAQ:FITB), Blackstone (NYSE:BX), and Morgan Stanley (NYSE:MS). Also scheduled to report are UnitedHealth (NYSE:UNH), Baker Hughes (NYSE:BHI), Philip Morris (NYSE:PM), IBM (NYSE:IBM), Schlumberger (NYSE:SLB), and Google (NASDAQ:GOOG).

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.

Deal Activity Keeps US Stocks in the Green
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US stocks were higher early today helped by strength from Apple (NASDAQ:AAPL) overnight. The tech giant announced an enterprise deal with IBM (NYSE:IBM) that had its stock up more than 3% in early trading. Gains were moderated to +0.75% during the session, but the benchmark indices were able to recover and finish right around where they started. Poor earnings from Bank of America (NYSE:BAC), the only major bank this quarter to miss earnings and trade negative, kept in check a further advance in the broad indices. China's second quarter GDP, released overnight, also gave global risk assets a positive tone to start the day.

Fed Chair Janet Yellen gave testimony to the House Financial Services Committee earlier today and her comments were very similar to yesterday's. She did face a tougher line of questioning from the committee members in the House, but no new information on monetary policy was revealed.

Industrial production rose 0.2% month-on-month in June, a bit slower than the +0.3% expected, and the prior month's growth was revised down by 0.1%. However, economists are optimistic that the orders pipeline will lead to stronger growth in the second half of the year. The NAHB survey of real-estate builders and agents showed a second straight month of broad-based increases, rising to 53 in July from 49 last month. This should lead to further outperformance by homebuilder stocks.

A few events in Portugal helped propel European bank stocks higher. Yesterday Rioforte Investments, a holding company within the Portuguese holding group Espirito Santo Financial Group (ESF), filed for bankruptcy protection after missing a repayment to Portugal Telecom on commercial paper. Portugal's central bank governor said that existing shareholders of Banco Espirito Santo (ELI:BES) would be willing to invest additional capital to avert a restructuring event. Other European banks that had been on shaky ground until now  have outperformed over the past two days as investors have become less concerned about weakness spreading to banks with direct or indirect ownership of the Espirito Santo group.

Tomorrow's Financial Outlook

Tomorrow morning, June new housing starts and building permits will be reported. New permit activity usually predates the former category by a few months. Starts are expected to increase to an annualized rate of 1.025 million from 1.001 million in the month prior while permits are expected to rise to 1.042 million from 991K. Weekly jobless claims will also be released.

The only major global economic report scheduled for tomorrow is the final estimate of June eurozone consumer prices. No change is expected.

Most of the last financial companies will report earnings tomorrow. These include Capital One Financial (NYSE:COF), Keycorp (NYSE:KEY), Fifth Third Bancorp (NASDAQ:FITB), Blackstone (NYSE:BX), and Morgan Stanley (NYSE:MS). Also scheduled to report are UnitedHealth (NYSE:UNH), Baker Hughes (NYSE:BHI), Philip Morris (NYSE:PM), IBM (NYSE:IBM), Schlumberger (NYSE:SLB), and Google (NASDAQ:GOOG).

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
Deal Activity Keeps US Stocks in the Green
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

US stocks were higher early today helped by strength from Apple (NASDAQ:AAPL) overnight. The tech giant announced an enterprise deal with IBM (NYSE:IBM) that had its stock up more than 3% in early trading. Gains were moderated to +0.75% during the session, but the benchmark indices were able to recover and finish right around where they started. Poor earnings from Bank of America (NYSE:BAC), the only major bank this quarter to miss earnings and trade negative, kept in check a further advance in the broad indices. China's second quarter GDP, released overnight, also gave global risk assets a positive tone to start the day.

Fed Chair Janet Yellen gave testimony to the House Financial Services Committee earlier today and her comments were very similar to yesterday's. She did face a tougher line of questioning from the committee members in the House, but no new information on monetary policy was revealed.

Industrial production rose 0.2% month-on-month in June, a bit slower than the +0.3% expected, and the prior month's growth was revised down by 0.1%. However, economists are optimistic that the orders pipeline will lead to stronger growth in the second half of the year. The NAHB survey of real-estate builders and agents showed a second straight month of broad-based increases, rising to 53 in July from 49 last month. This should lead to further outperformance by homebuilder stocks.

A few events in Portugal helped propel European bank stocks higher. Yesterday Rioforte Investments, a holding company within the Portuguese holding group Espirito Santo Financial Group (ESF), filed for bankruptcy protection after missing a repayment to Portugal Telecom on commercial paper. Portugal's central bank governor said that existing shareholders of Banco Espirito Santo (ELI:BES) would be willing to invest additional capital to avert a restructuring event. Other European banks that had been on shaky ground until now  have outperformed over the past two days as investors have become less concerned about weakness spreading to banks with direct or indirect ownership of the Espirito Santo group.

Tomorrow's Financial Outlook

Tomorrow morning, June new housing starts and building permits will be reported. New permit activity usually predates the former category by a few months. Starts are expected to increase to an annualized rate of 1.025 million from 1.001 million in the month prior while permits are expected to rise to 1.042 million from 991K. Weekly jobless claims will also be released.

The only major global economic report scheduled for tomorrow is the final estimate of June eurozone consumer prices. No change is expected.

Most of the last financial companies will report earnings tomorrow. These include Capital One Financial (NYSE:COF), Keycorp (NYSE:KEY), Fifth Third Bancorp (NASDAQ:FITB), Blackstone (NYSE:BX), and Morgan Stanley (NYSE:MS). Also scheduled to report are UnitedHealth (NYSE:UNH), Baker Hughes (NYSE:BHI), Philip Morris (NYSE:PM), IBM (NYSE:IBM), Schlumberger (NYSE:SLB), and Google (NASDAQ:GOOG).

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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