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European Markets Pause, Weigh on US Stocks
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

European markets took a breather today following less-than-dovish comments from German Bundesbank President Jens Weidmann. He said that because central banks continue to cross into unchartered territory, policy makers and banks need to be increasingly vigilant against over-reactions that could lead to bubbles in financial and real estate markets. Italian and Spanish sovereign bonds and equities were noticeably weaker today, which was a drag on stocks in the US, where markets have largely been following Europe's lead for the past three days.

Tensions continued to escalate in Iraq as rebels took control of the city of Mosul. Iraq's second largest city, and additional provinces. The Iraqi Parliament declared a state of emergency in the morning, according to state-run TV. Middle Eastern stocks, particularly those in Dubai, have fallen 8% in three days. Thus far these tensions have not spread outside of the region; crude oil production is untouched and the ECB's recent actions continue to be the main macro story.

Stocks in the US followed the same trends that began developing yesterday. Utilities continued to underperform in the S&P 500 (INDEXSP:.INX), and are down 0.37% as a sector today. Industrial stocks were also weak. Small-cap stocks underperformed while the tech sector was today's market leader.

In the April JOLTS report, job openings rose to the highest level in almost seven years. Although, the level only rose to 4,708 million from 4,706 million in the month prior, which does not corroborate the strength seen in the April nonfarm payrolls report.

On the political front, the White House announced that it strongly supports the recent bill proposed by Senator Elizabeth Warren that would cap interest rates for student loans at 3.86%. On Monday, the president signed an executive order expanding an existing program aimed at reducing the burden of student loan debt by limiting what some borrowers pay to 10% of their income

The Treasury sold $28 billion of 3-year notes at a high yield of 0.93%. The auction had stronger than normal total demand with a bid-to-cover ratio of 3.41 versus a 3.3 norm. However, demand from non primary dealer sources was lackluster. The 10-year Treasury yield was three basis points higher to 2.635% today.

Tomorrow's Financial Outlook

There are no major economic data points scheduled to be released tomorrow in the US. The Treasury will release its budget statement for May, which is expected to show a net deficit of $142.5 billion. The deficit in April was $138.7 billion. The Treasury is scheduled to auction $21 billion in 10-year notes at 1:00 p.m. EDT.

The only economic reports scheduled for the rest of the world are from the UK. May jobless claims and the 3-month ILO unemployment rate will be released.

The only two earnings reports scheduled for tomorrow are from H&R Block (NYSE:HRB) and Restoration Hardware (NYSE:RH).


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.

European Markets Pause, Weigh on US Stocks
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

European markets took a breather today following less-than-dovish comments from German Bundesbank President Jens Weidmann. He said that because central banks continue to cross into unchartered territory, policy makers and banks need to be increasingly vigilant against over-reactions that could lead to bubbles in financial and real estate markets. Italian and Spanish sovereign bonds and equities were noticeably weaker today, which was a drag on stocks in the US, where markets have largely been following Europe's lead for the past three days.

Tensions continued to escalate in Iraq as rebels took control of the city of Mosul. Iraq's second largest city, and additional provinces. The Iraqi Parliament declared a state of emergency in the morning, according to state-run TV. Middle Eastern stocks, particularly those in Dubai, have fallen 8% in three days. Thus far these tensions have not spread outside of the region; crude oil production is untouched and the ECB's recent actions continue to be the main macro story.

Stocks in the US followed the same trends that began developing yesterday. Utilities continued to underperform in the S&P 500 (INDEXSP:.INX), and are down 0.37% as a sector today. Industrial stocks were also weak. Small-cap stocks underperformed while the tech sector was today's market leader.

In the April JOLTS report, job openings rose to the highest level in almost seven years. Although, the level only rose to 4,708 million from 4,706 million in the month prior, which does not corroborate the strength seen in the April nonfarm payrolls report.

On the political front, the White House announced that it strongly supports the recent bill proposed by Senator Elizabeth Warren that would cap interest rates for student loans at 3.86%. On Monday, the president signed an executive order expanding an existing program aimed at reducing the burden of student loan debt by limiting what some borrowers pay to 10% of their income

The Treasury sold $28 billion of 3-year notes at a high yield of 0.93%. The auction had stronger than normal total demand with a bid-to-cover ratio of 3.41 versus a 3.3 norm. However, demand from non primary dealer sources was lackluster. The 10-year Treasury yield was three basis points higher to 2.635% today.

Tomorrow's Financial Outlook

There are no major economic data points scheduled to be released tomorrow in the US. The Treasury will release its budget statement for May, which is expected to show a net deficit of $142.5 billion. The deficit in April was $138.7 billion. The Treasury is scheduled to auction $21 billion in 10-year notes at 1:00 p.m. EDT.

The only economic reports scheduled for the rest of the world are from the UK. May jobless claims and the 3-month ILO unemployment rate will be released.

The only two earnings reports scheduled for tomorrow are from H&R Block (NYSE:HRB) and Restoration Hardware (NYSE:RH).


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.

European Markets Pause, Weigh on US Stocks
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

European markets took a breather today following less-than-dovish comments from German Bundesbank President Jens Weidmann. He said that because central banks continue to cross into unchartered territory, policy makers and banks need to be increasingly vigilant against over-reactions that could lead to bubbles in financial and real estate markets. Italian and Spanish sovereign bonds and equities were noticeably weaker today, which was a drag on stocks in the US, where markets have largely been following Europe's lead for the past three days.

Tensions continued to escalate in Iraq as rebels took control of the city of Mosul. Iraq's second largest city, and additional provinces. The Iraqi Parliament declared a state of emergency in the morning, according to state-run TV. Middle Eastern stocks, particularly those in Dubai, have fallen 8% in three days. Thus far these tensions have not spread outside of the region; crude oil production is untouched and the ECB's recent actions continue to be the main macro story.

Stocks in the US followed the same trends that began developing yesterday. Utilities continued to underperform in the S&P 500 (INDEXSP:.INX), and are down 0.37% as a sector today. Industrial stocks were also weak. Small-cap stocks underperformed while the tech sector was today's market leader.

In the April JOLTS report, job openings rose to the highest level in almost seven years. Although, the level only rose to 4,708 million from 4,706 million in the month prior, which does not corroborate the strength seen in the April nonfarm payrolls report.

On the political front, the White House announced that it strongly supports the recent bill proposed by Senator Elizabeth Warren that would cap interest rates for student loans at 3.86%. On Monday, the president signed an executive order expanding an existing program aimed at reducing the burden of student loan debt by limiting what some borrowers pay to 10% of their income

The Treasury sold $28 billion of 3-year notes at a high yield of 0.93%. The auction had stronger than normal total demand with a bid-to-cover ratio of 3.41 versus a 3.3 norm. However, demand from non primary dealer sources was lackluster. The 10-year Treasury yield was three basis points higher to 2.635% today.

Tomorrow's Financial Outlook

There are no major economic data points scheduled to be released tomorrow in the US. The Treasury will release its budget statement for May, which is expected to show a net deficit of $142.5 billion. The deficit in April was $138.7 billion. The Treasury is scheduled to auction $21 billion in 10-year notes at 1:00 p.m. EDT.

The only economic reports scheduled for the rest of the world are from the UK. May jobless claims and the 3-month ILO unemployment rate will be released.

The only two earnings reports scheduled for tomorrow are from H&R Block (NYSE:HRB) and Restoration Hardware (NYSE:RH).


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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