It was a touch and go affair for most of the week , finishing barely up. A major victory for the bulls in a week that the bears had abundance of opportunity to overpower the bulls but the bulls just resist it.
Take a good look at the internals and the entire report and it is obvious that Friday was an up day more than a down day with more sectors and industries posting gains, advances beating declines. The indices may not reflect it but the broader market surely did.
BRIEFING.COM - Friday 30 July, @ 16:50 ET AMC
Daily Sector Wrap: Session Settles Flat, but Month Sees Strong Gain
Disappointing GDP data had stocks down more than 1% in the early going, but for the second straight session they fought their way higher only to struggle near the neutral line. Despite such resistance, the stock market booked its best monthly performance in one year.
The
The data provided fodder for doubts about the pace of the economic recovery, so stocks responded by retreating to a loss of more than 1% shortly after the open. Some reassurance was provided by a better-than-expected
Stocks gradually erased their losses, but resistance kept a cap on the move and restricted the stock market to a flat finish. Despite the anticlimactic close, the S&P 500 concluded July with a 6.9% gain,its best monthly performance since a 7.3% gain in July 2009.
Earnings were relegated to secondary status once again. Not even reports from Dow components Chevron (CVX 76.21, +0.19) and Merck (MRK 34.46, -0.60) made any real ripple in the broader market ,both posted upside earnings surprises for the latest quarter.
In currency trade, the euro pulled back from the two-month high that it set in the prior session. It finished the session 0.3% lower, but still booked a 6.5% gain for July. Not only was that the currency's first monthly advance in eight months, but it was the best monthly performance since May 2009. The euro is still down 9.0% year-to-date, though.
Meanwhile, the Japanese yen climbed 0.4% to hit a fresh eight-month high. The yen is up 7.6% for the year.
Treasuries had a strong session. The yield on the benchmark 10-year Note moved back to 2.90% in response.
Commodities put in another strong session. In turn, the CRB Commodity Index advanced 1.5% for the second straight session. More impressive, though, is that the CRB advanced 6.1% in July. That made for its best monthly performance since May 2009.
Sector Leaders/Laggards for Friday 30 July, 2010 - 16:54 ET AMC
Leading Sectors: Consumer Discretionary (+0.7%), Materials (+0.5%), Health Care (+0.3%), Industrials (+0.2%), Consumer Staples (+0.2%)
Leading Industries/ETFs : grain complex- JJG +3.5%, DBA +1.8%, silver- SLV +2.00%, biotechnology- IBB +1.7%, XBI +1.3%, BBH +0.7%, gold miners & junior gold miners- GDX +1.1%, GDXJ +%, commods. index- DJP +1.7%, DBA +1.8%, GSG +1.1%, natural gas- UNG +1.9%, iShares Malaysia- EWM +1.3%, ag/chem complex- MOO +1.6%, US bonds & fixed income- TLT +1.6%.
Unchanged Sectors: Financials (unch.)
Lagging Sectors: Telecom (-0.1%), Energy (-0.3%), Tech (-0.5%), Utilities (-0.6%)
Lagging Industries/ETFs : solar power- TAN -3.3%, wind energy- FAN -1.5%, iShares Spain- EWP -1.5%, VIX vol index- VXX -1.1%
Other Market Moving Factors:
• Second Quarter U.S. GDP increases less than expected after sharp upward revision to first quarter figure
• Overseas markets slide
• Euro slips, but yen rises to new multi-month high
• Earnings reports remain upbeat, but have little influence over trade
Leading Sectors: Consumer Discretionary (+0.7%), Materials (+0.5%), Health Care (+0.3%), Industrials (+0.2%), Consumer Staples (+0.2%)
Leading Industries/ETFs : grain complex- JJG +3.5%, DBA +1.8%, silver- SLV +2.00%, biotechnology- IBB +1.7%, XBI +1.3%, BBH +0.7%, gold miners & junior gold miners- GDX +1.1%, GDXJ +%, commods. index- DJP +1.7%, DBA +1.8%, GSG +1.1%, natural gas- UNG +1.9%, iShares Malaysia- EWM +1.3%, ag/chem complex- MOO +1.6%, US bonds & fixed income- TLT +1.6%.
Unchanged Sectors: Financials (unch.)
Lagging Sectors: Telecom (-0.1%), Energy (-0.3%), Tech (-0.5%), Utilities (-0.6%)
Lagging Industries/ETFs : solar power- TAN -3.3%, wind energy- FAN -1.5%, iShares Spain- EWP -1.5%, VIX vol index- VXX -1.1%
Other Market Moving Factors:
• Second Quarter U.S. GDP increases less than expected after sharp upward revision to first quarter figure
• Overseas markets slide
• Euro slips, but yen rises to new multi-month high
• Earnings reports remain upbeat, but have little influence over trade
BRIEFING.COM - Friday 30 July, 2010 @ 18:24 ET AMC
After-Hours Report: Weekly Wrap
What a difference a month makes -- or does it? The stock market took a bullish path through July, which seemed unlikely when June was coming to an end. Specifically, the S&P 500 increased 6.9%.
The great equalizer was a batch of stronger-than-expected earnings reports and generally reassuring guidance fromU.S.
The clearest evidence of that concern could be found in the Treasury market, which had little problem digesting another $100 bln in new issuance across 2-year, 5-year, and 7-year maturities. Yields for each maturity ended the week lower than where they began; in fact, the 2-year note slipped to a record-low 0.546% on Friday. Separately, the yield on the 10-year note was slashed 9 basis points to 2.90%.
The bulk of the move in the 10-year came on Friday following the advance Q2 GDP report, which showed an annualized growth rate of 2.4% that was close to expectations and down from an upwardly revised 3.7% growth rate (from 2.7%) in the first quarter.
The change in private inventories contributed 1.05 percentage points to Q2 GDP while government spending contributed 0.88 percentage points. These contributions diminished the quality of Q2 GDP growth, especially the government contribution which substantiated the concerns that the economic recovery effort is not as self-sustaining as one would like to see at this juncture.
Annual benchmark revisions dating back to the first quarter 2007 accompanied the Q2 GDP report. The gist of the revisions is that personal spending has not been as strong as thought; that spending on equipment and software has been stronger than thought; and that the contraction from Q4 2007 to Q2 2009 was deeper than previously believed.
Another catalyst for the Treasury market this week was St. Louis Fed President Bullard who published a paper on Thursday that called attention to the risk of theU.S. Japan
Roughly two-thirds of the S&P 500 has reported results for the June quarter. By all accounts, the earnings growth for the second quarter has been quite strong. Thomson Reuters informs us that S&P 500 operating earnings are on track to increase 36% while revenues are on pace to increase 9% versus the year-ago period.
At the end of the week, the S&P 500 was little changed from where it began the week. That is not all that bad given the 3.6% gain in the prior week, but it did not go unnoticed that the S&P 500 was unable to hold a posture above its 200-day simple moving average, which it pierced on Monday. From its closing level on Monday to its closing level on Friday, the S&P 500 declined 1.2%.
Technical analysts are prone to call this week's action a consolidation phase after a strong run. That would seem to suggest that an upside resolution is still expected; however, a continued inability to clear resistance at the 200-day simple moving average (now 1114.39) will eventually be held out as a worrisome signal.
Earnings news and economic data will continue to move the market in the week ahead. Three Dow components -- Procter & Gamble (PG), Pfizer (PFE) and Kraft (KFT) -- are on the reporting docket. The biggest report of the week, though, will be deferred until Friday, which is when the July employment report will be released.
With a lot of expectations riding on the employment data, it would not be a surprise to see the market trade in a choppy manner leading up to its release.
After-Hours Report: Weekly Wrap
What a difference a month makes -- or does it? The stock market took a bullish path through July, which seemed unlikely when June was coming to an end. Specifically, the S&P 500 increased 6.9%.
The great equalizer was a batch of stronger-than-expected earnings reports and generally reassuring guidance from
The clearest evidence of that concern could be found in the Treasury market, which had little problem digesting another $100 bln in new issuance across 2-year, 5-year, and 7-year maturities. Yields for each maturity ended the week lower than where they began; in fact, the 2-year note slipped to a record-low 0.546% on Friday. Separately, the yield on the 10-year note was slashed 9 basis points to 2.90%.
The bulk of the move in the 10-year came on Friday following the advance Q2 GDP report, which showed an annualized growth rate of 2.4% that was close to expectations and down from an upwardly revised 3.7% growth rate (from 2.7%) in the first quarter.
The change in private inventories contributed 1.05 percentage points to Q2 GDP while government spending contributed 0.88 percentage points. These contributions diminished the quality of Q2 GDP growth, especially the government contribution which substantiated the concerns that the economic recovery effort is not as self-sustaining as one would like to see at this juncture.
Annual benchmark revisions dating back to the first quarter 2007 accompanied the Q2 GDP report. The gist of the revisions is that personal spending has not been as strong as thought; that spending on equipment and software has been stronger than thought; and that the contraction from Q4 2007 to Q2 2009 was deeper than previously believed.
Another catalyst for the Treasury market this week was St. Louis Fed President Bullard who published a paper on Thursday that called attention to the risk of the
Roughly two-thirds of the S&P 500 has reported results for the June quarter. By all accounts, the earnings growth for the second quarter has been quite strong. Thomson Reuters informs us that S&P 500 operating earnings are on track to increase 36% while revenues are on pace to increase 9% versus the year-ago period.
At the end of the week, the S&P 500 was little changed from where it began the week. That is not all that bad given the 3.6% gain in the prior week, but it did not go unnoticed that the S&P 500 was unable to hold a posture above its 200-day simple moving average, which it pierced on Monday. From its closing level on Monday to its closing level on Friday, the S&P 500 declined 1.2%.
Technical analysts are prone to call this week's action a consolidation phase after a strong run. That would seem to suggest that an upside resolution is still expected; however, a continued inability to clear resistance at the 200-day simple moving average (now 1114.39) will eventually be held out as a worrisome signal.
Earnings news and economic data will continue to move the market in the week ahead. Three Dow components -- Procter & Gamble (PG), Pfizer (PFE) and Kraft (KFT) -- are on the reporting docket. The biggest report of the week, though, will be deferred until Friday, which is when the July employment report will be released.
With a lot of expectations riding on the employment data, it would not be a surprise to see the market trade in a choppy manner leading up to its release.
Originally Posted by BRIEFING.COM - Friday 30 July, 2010 @ 15:41 ET
Looking back at a strong July As we close out July, the first month of the third quarter, we wanted to take a look back at the performance of major averages after what has been a strong rebound month. The S&P 500 set 2010 lows on July 1, after losing -11.8% during Q2, representing the worst quarterly performance since 4Q08. However, attractive valuations, combined with an overly bearish sentiment set the stage for a rebound early in the month, with short covering adding fuel to the momentum. Since then, the major averages have made further progress, as earnings season played out better-than-expected. In addition to earnings, a mid-month SEC settlement between GS and the SEC, BP's progress on the containment of the oil spill, and generally positive results of the EU bank stress tests have also improved the general mood. Generally speaking, there was continual dip buying throughout the month, with periods of weakness being short and shallow. The momentum waned a bit in the past few days, with the S&P giving back ~2%. As we finish up earnings season over the next week, the focus will shift back to economic data, as investors try to gauge the pace and sustainability of the broader recovery. Additionally, without the earnings catalysts, volume will likely be more characteristic of summer trading (i.e. light), and trading could be a bit choppier.
Looking at the performance in stocks, the major U.S. indices are on track to post gains between 6.9% and 7.0% with only Britain's FTSE (+6.9%) and the Shanghai Composite (+7.4%) performing equally or better.
Looking at the currency markets, the dollar index fell by 5.4%, with strengthening in all of the other major currencies. The best performing currency was the euro (+6.6%), followed by the pound (+5.1 and the yen (+2.2%). Even the yuan strengthened against the dollar, adding 0.1%.
As the dollar weakened, the commodities were mixed. Energy was stronger with natural gas +6.5% and crude oil adding 4.3%, but the safe-haven that is gold was among the biggest decliners for the month, falling 4.8%.
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TECHNICAL UPDATE - FRIDAY 30 JULY, 2010 - AMC
TECHNICAL UPDATE - FRIDAY 30 JULY, 2010 - AMC
DOW JONES INDUSTRIAL AVERAGE ($INDU: CBOT)
10,465.94 -1.22 (-0.01%)
Volume: 208,159,136 from 202,113,198 the previous day (∆ +2.99%)
Range: 10,347.50 – 10,507.19 (159.69 points)
The truth is that the market did rally more than tank. That's three times in two days that the market rallied back from massive dips. It’s going to be a pain in the butt to get DOW above 10,500 again but given what was seen over the last few days, I reckon we'll pull it off again, in a big way. S&P500 has been more resilient by being able to close above its critical 1,100.
Two consecutive sessions saw the DOW avoid closing below the 200DSMA.
NASDAQ COMPOSITE INDEX ($COMPQ.IDX: NASDAQ)
2,254.70 +3.01 (+0.13%)
Volume: 625,089,228 from 670,511,147 (∇ -6.77%)
Range: 2,218.61 – 2,264.81
S&P 500 INDEX (SPX: CBOE)
1,101.60 +0.07 (+0.01%)
Volume: 3,564,997,600 from 4,064,782,800 (∇ -12.29%)
Range: 1,088.01 – 1,106.44
NASDAQ COMPOSITE INDEX ($COMPQ.IDX: NASDAQ)
2,254.70 +3.01 (+0.13%)
Volume: 625,089,228 from 670,511,147 (∇ -6.77%)
Range: 2,218.61 – 2,264.81
S&P 500 INDEX (SPX: CBOE)
1,101.60 +0.07 (+0.01%)
Volume: 3,564,997,600 from 4,064,782,800 (∇ -12.29%)
Range: 1,088.01 – 1,106.44
___________________________________________
Market Internals for Friday 30 July, 2010 - 16:54 ET AMC
NYSE :
Lower than avg volume @ 1176 vs closing avg of 1414
Advancers outpacing Decliners (adv/dec): 1759/1243
New highs outpacing new lows (hi/lo): 163/19
NASDAQ :
Lower than avg volume @ 2167 vs 2243
Advancers outpacing Decliners (adv/dec): 1444/1176
New highs outpacing new lows (hi/lo): 43/31
The bears don't have what it takes and this time, the bulls responded with more conviction. When the bears don’t take the initiative and the bulls don’t seize the opportunity
___________________________________________
COMMODITIES & BONDS - Summary for Friday 30 July, 2010 - from Briefing.com
CRB Posts Impressive Monthly Performance
Commodities put in another strong session. In turn, the CRB Commodity Index advanced 1.5% for the second straight session. More impressive, though, is that the CRB advanced 6.1% in July. That made for its best monthly performance since May 2009.
Natural gas prices continued their recent tear. As such, the commodity climbed 2.0% to settle pit trade at $4.29 per MMBtu, up 7.4% for the week. Oil prices managed to climb back above $79 per barrel as crude contracts closed pit trade with a .9% gain at $79.05 per barrel. Aug RBOB gasoline closed up 2.14 cents to $2.1224 and Aug heating oil gained 1.85 cents to end at $2.0881.
Precious metals posted strong gains as well. Specifically, gold prices climbed 1.2% to finish the week at $118.20 per ounce and silver settled a sharp 2.8% higher at $18.11 per ounce. Sept copper gained 2.15 cents to close at $3.3115.
December corn closed 12.25 cents higher at $4.06 per bushel, November soybeans closed higher by 19 cents at $10.07 per bushel, Sept wheat closed 30.5 cents higher at $6.58 per bushel, Aug ethanol closed $0.039 higher at $1.705, October world sugar futures closed 0.07cents higher to 19.57 cents.
The bond market was able to recover to the best levels on the week on the long bond, best since Thurs on the 10s, Mar 2009 on the 5s while knocking around record levels on the 2s. The long end was the power forward here, getting added pump as spreaders unwound from the recent large swing buying the mid-curve against the 30s. The poor to eh data, the week-and-month end activity and sliding stocks all aided the bid while players are so bored and/or lonely they have already begun talking up the jobs report next week on Lollapalooza Fri. They need to be reminded there are a few potential tape-bombs earlier in the week (income and spending, ISMs). The auctions, good, fair and ugly, were out of the way, even though corporate and global issuance is still crowding out the calendar, mostly mid-curve, as they look to get in at the extreme low rates. The rebound in stocks will likely have little spillover unless they can give the run some follow-through next week.
The curve was swung back to a flatter stance with the 2-10-yr, with 234.5 area on the 2-10-yr yield spread proving a little sticky, now 235.7. The dollar was under pressure all session with the index backed off to the lowest since late Apr, but getting stalled near the nice, round 81.50 point. The euro has been also spent the latter part of the day stalled near a half point, 1.3050, unable to get much back up after the push to 1.31. The yen'spush better also lost some spunk as it flirted with Nov levels with players sniffing for potential intervention.
The week ahead has construction spending and ISM (10), while Fed chief Bernanke will speak at a conference (10), and Timmy Geithner will speak on financial regulation late (16).
Treasury Yields AMC on Friday 30 July:
• 2 Year Note 0.55% -0.04
• 5 Year Note 1.60% -0.10
• 10 Year Note 2.94% -0.09
• 30 Year Bond 3.98% -0.10
2/30 Spread : 343bps (-6) ... 2/10 Spread : 239bps (-5)
Commodities AMC on Friday 30 July:
Light Crude (NYM) September 10 ($US per bbl.) : 78.95 ( +0.59 )
Natural Gas (NYM) September 10 ($US per mmbtu.) : 4.92 ( +0.096 )
Unleaded Gas (NYM) August 10 ($US per gal.) : 2.11 ( +0.0092 )
Gold (CMX ) August 10 ($US per Troy oz.) : 1,171.40 ( -3.46)
Silver (CMX) August 10 ($US per Troy oz.) : 17.69 ( -0.110 )
Copper (CMX) August 10 ($US per lb.) : 3.29 ( +0.0470 )
Corn (CBT) September 10 (cents per bu.) : 392.75 ( +13.50 )
Soyabeans (CBT) August 10 (cents per bu.) : 1,052.50 ( +25.75 )
Sugar #11 (CBT) October 10 (cents per pound) : 19.57 ( +0.07 )
COMMODITIES & BONDS - Weekly Summary for Monday 26 July to Friday 30 July, 2010
Crude Ends Just Above $79, Wheat is Best Performing Commodity, Gold fell Modestly
Commodities gained 2.9% collectively for the week, well above the 0.1% gain in the S&P 500.
Looking more closely at energy, July crude oil futures, which rose 0.1% to close at $79.05 for the week, fell sharply on Tuesday, falling into the red and giving up around $2.50 per barrel. The move coincided with a sharp move higher in the dollar index. Crude traded in the red for the rest of the week, before moving back into positive territory on Friday. Inventory data on Wednesday showed a build of 7,308K versus the consensus, which called for a draw of 1,725K).
July natural gas trended steadily higher for the majority of the week. Around the open of pit trading on Wednesday, natural gas put its biggest move in, rallying approx. $0.18 to around $4.86. The energy component gave back those gains, but continued to trend higher on the week putting it highs for the week of $4.937 on Friday trade. Natural gas data on Thursday showed a build of 51 bcf, versus analyst expectations of a build of 50 bcf.
In Precious metals, August gold fell 0.6% to close at $1182.20 per ounce and September silver was flat at $18.11 per ounce.
In the ag complex, Wheat futures were the best performing commodity on the week as the September contract rose 10.9% to $6.62/bushel, largely due to a drought inRussia
In the dry bulk shipping sector, the Baltic Dry Index (the cost of renting ships) gained 7.7% to 1967, as indicated by the benchmark Baltic Dry Index (BDI).
COMMODITIES QUARTERLY REPORT
Corn, wheat and soybeans continue sharp rally:
Wheat futures up ~47.6%, corn up ~19.5% and soybeans up ~10.2% since USDA’s June 30 planting/quarterly stocks report
Today, continuous corn futures contracts +3.2% at $3.92/bushel, wheat +4.8% at $6.60/bushel and soybeans +2.1% at $10.48/bushel are trading higher on recent bullish catalysts (i.e. notable export sales, unfavorable/favorable weather in key markets -Russia, China and U.S.- and grain inventory reduction) largely in the wheat and corn markets. The US Dollar Index is in negative territory now, but ag futures were still trading higher this morning despite strength in the index. (Commodies typically trade inversely to the US Dollar Index).
Overall, the recent strength in the ag futures has provided price support in many agriculture stocks, including: farm equipment companies (Deere (DE +3.2%), Agco (AGCO +1.6%) and CNH Global (CNH +0.7%)), fertilizer companies (Intrepid Potash (IPI +1.9%), Potash (POT+1.7%), Agrium (AGU +1.3%), CF Industries (CF +0.6%), Mosaic (MOS +0.3%), seed companies (Monsanto (MON -0.2%) and Syngenta (SYT -1.0%)), Irrigation (Lindsay (LNN +0.3%))... Other ag names such as Archer Daniels Midland (ADM +0.6%), Andersons (ANDE -0.2%), DuPont (+0.1%). Ag ETF's are trading higher as well, including JJG +2.4%, DBA +1.4%.
The grains (e.g. corn, wheat) and oilseeds (soybeans) have continued to climb higher since the USDA released its June 30 planting report and quarterly grains stocks report. However, although the key grains stocks report showed corn inventories grew 1% YoY to 4.31 billion bushels, this was 300 million bushels below expectations, which is what really provided price strength in corn futures. Reductions in corn inventory estimates from the USDA, as measured by the USDA's World Ag Supply and Demand report, has also provided price support to corn. Since the USDA released its May supply/demand report on May 11, corn ending inventory expectations have declined 22.3% to the current 1.412 billion bushels estimates.
But wheat prices have climbed significantly on other recent catalysts such as lower wheat production inRussia Russia
Also, yesterday's USDA export sales report showed that theU.S. Japan , Nigeria , the Philippines and Egypt
Commodities gained 2.9% collectively for the week, well above the 0.1% gain in the S&P 500.
Looking more closely at energy, July crude oil futures, which rose 0.1% to close at $79.05 for the week, fell sharply on Tuesday, falling into the red and giving up around $2.50 per barrel. The move coincided with a sharp move higher in the dollar index. Crude traded in the red for the rest of the week, before moving back into positive territory on Friday. Inventory data on Wednesday showed a build of 7,308K versus the consensus, which called for a draw of 1,725K).
July natural gas trended steadily higher for the majority of the week. Around the open of pit trading on Wednesday, natural gas put its biggest move in, rallying approx. $0.18 to around $4.86. The energy component gave back those gains, but continued to trend higher on the week putting it highs for the week of $4.937 on Friday trade. Natural gas data on Thursday showed a build of 51 bcf, versus analyst expectations of a build of 50 bcf.
In Precious metals, August gold fell 0.6% to close at $1182.20 per ounce and September silver was flat at $18.11 per ounce.
In the ag complex, Wheat futures were the best performing commodity on the week as the September contract rose 10.9% to $6.62/bushel, largely due to a drought in
In the dry bulk shipping sector, the Baltic Dry Index (the cost of renting ships) gained 7.7% to 1967, as indicated by the benchmark Baltic Dry Index (BDI).
COMMODITIES QUARTERLY REPORT
Corn, wheat and soybeans continue sharp rally:
Wheat futures up ~47.6%, corn up ~19.5% and soybeans up ~10.2% since USDA’s June 30 planting/quarterly stocks report
Today, continuous corn futures contracts +3.2% at $3.92/bushel, wheat +4.8% at $6.60/bushel and soybeans +2.1% at $10.48/bushel are trading higher on recent bullish catalysts (i.e. notable export sales, unfavorable/favorable weather in key markets -Russia, China and U.S.- and grain inventory reduction) largely in the wheat and corn markets. The US Dollar Index is in negative territory now, but ag futures were still trading higher this morning despite strength in the index. (Commodies typically trade inversely to the US Dollar Index).
Overall, the recent strength in the ag futures has provided price support in many agriculture stocks, including: farm equipment companies (Deere (DE +3.2%), Agco (AGCO +1.6%) and CNH Global (CNH +0.7%)), fertilizer companies (Intrepid Potash (IPI +1.9%), Potash (POT+1.7%), Agrium (AGU +1.3%), CF Industries (CF +0.6%), Mosaic (MOS +0.3%), seed companies (Monsanto (MON -0.2%) and Syngenta (SYT -1.0%)), Irrigation (Lindsay (LNN +0.3%))... Other ag names such as Archer Daniels Midland (ADM +0.6%), Andersons (ANDE -0.2%), DuPont (+0.1%). Ag ETF's are trading higher as well, including JJG +2.4%, DBA +1.4%.
The grains (e.g. corn, wheat) and oilseeds (soybeans) have continued to climb higher since the USDA released its June 30 planting report and quarterly grains stocks report. However, although the key grains stocks report showed corn inventories grew 1% YoY to 4.31 billion bushels, this was 300 million bushels below expectations, which is what really provided price strength in corn futures. Reductions in corn inventory estimates from the USDA, as measured by the USDA's World Ag Supply and Demand report, has also provided price support to corn. Since the USDA released its May supply/demand report on May 11, corn ending inventory expectations have declined 22.3% to the current 1.412 billion bushels estimates.
But wheat prices have climbed significantly on other recent catalysts such as lower wheat production in
Also, yesterday's USDA export sales report showed that the
___________________________________________
Earnings Highlights for week Monday 02 August to Friday 06 August, 2010
Monday: AB, HUM, L, MNTA, OSK, DVA, ESLR, HLF, INSP, VITA, ROG, TXRH, VRSN and VMC.
Tuesday: ACOR, ADM, BHI, BYD, BPI, CTSH, DF, DOW, FDP, HW, MRO, MA, TAP, MGM, OMX, PG, SOLF, WLK, ACAS, APC, AVB, SAM, FRPT, HTZ, LEAP, PCLN, NVTL, WBMD, WFMI, and WMS.
Wednesday: AGU, ANR, ASCA, AOL, GRMN, ICE, LL, PCG, PHM, Q, TWX, UMC, ALL, CELL, CECO, CLWR, CNW, DIVX, GDP, SOLR, HNSN, IPI, MELI, MUR, PRU, PFE, SINA, RIG, and WCAA.
Thursday: ACM, BECN, CVC, CBOE, CTB, DSX, DTV, FWLT, FTO, GNA, HOC, LAMR, LZ, PCS, PKD, PLA, PXP, TWC, USM, VIA.B, WWE, ATVI, NILE, CLMS, COGO, DEPO, BAGL, HANS, KFT, LYV, MFLX, RMD, RST, SGMS, SQNM, YSI, and WTW.
Friday: BRNC, CSUN, JRCC, LMIA, POM, and WCRX.
Economic Events for week Monday 02 August to Friday 06 August, 2010
Monday:
10:00 am Construction Spending
10:00 am ISM Index
Tuesday:
08:30 am Personal Income
08:30 am Personal Spending
08:30 am PCE Prices - Core
10:00 am Factory Orders
10:00 am Pending Home Sales
14:00 pm Auto Sales
14:00 pm Truck Sales
Wednesday:
08:15 am ADP Employment Change
10:00 am ISM Services
10:30 am Crude Inventories
Thursday:
08:30 am Continuing Claims
08:30 am Initial Claims
10:30 am Natural Gas Inventories
Friday:
08:30 am Nonfarm Payrolls
08:30 am Nonfarm Payrolls - Private
08:30 am Unemployment Rate
08:30 am Hourly Earnings
08:30 am Average Workweek
15:00 pm Consumer Credit
Conferences and Shareholder/Analyst Meetings of Interest
for week Monday 02 August to Friday 06 August, 2010
Monday:
- $30 bln 3 and 6-month Treasury Bills Auctions
Tuesday:
- NATI Investor Conference
- TSPT, CELG, ABT, HUM at Wedbush Morgan Securities Life Sciences Best Ideas MAC: Management Access Conference
Wednesday:
- AXP Semi-Annual Financial Community Meeting
Thursday:
- RF Analyst Meeting CELG, ZMH, MRK, WLP at BMO Capital Markets Focus on Healthcare Conference
Friday:
- None
___________________________________________
SUMMARY
August Preview:
It is traditionally the second worse month of the trading year after September. August is one of those rare months that opens poorly and closes poorly - 9 of the last 12 years were down at the open. The first nine days of August have also been reliably weak. The Monday before August Expiration Friday has seen 11 of the last 14 go up. August Expiration itself has been bullish in recent years with the DOW recording 6 out of 6 in a row.
Singaporeans should take note of Friday 7 August as it is the eve of a Three Day Weekend ahead of the Nation's 45th National Day celebrations on Monday 9 August. You know what usually happens on that day.
I am going to break tradition today seeing that there is no data due before the open and based onAsia 's strength in early trading today. Also on the continuing saga of great earnings and that the bears failed to take the market down successfully last month, there is little to suggest that America
Singaporeans should take note of Friday 7 August as it is the eve of a Three Day Weekend ahead of the Nation's 45th National Day celebrations on Monday 9 August. You know what usually happens on that day.
I am going to break tradition today seeing that there is no data due before the open and based on
Have a great trading week !
Direction for Monday 02 August, 2010; ∆ Up
Direction for the week Monday 02 August to Friday 06 August, 2010; ∆ Up
