Daily Market Analysis - Monday 18 July, 2011

Friday 15 July, 2011 - AMC

Dow	12,479.73	+42.61	+0.34%

Nasdaq	2,789.80	+27.13	+0.98%

S&P 500	1,316.14	+7.27	+0.56%

Russell 2000	828.78	0.00	0.00%

 

Friday 15 July, 2011 Economic Data

8:30am	USD		Core CPI m/m		0.3%	0.2%	0.3%
8:30am	USD		CPI m/m		-0.2%	-0.1%	0.2%
8:30am	USD		Empire State Manufacturing Index		-3.8	4.5	-7.8
9:15am	USD		Capacity Utilization Rate		76.7%	77.0%	76.7%
9:15am	USD		Industrial Production m/m		0.2%	0.4%	-0.1%
9:55am	USD		Prelim UoM Consumer Sentiment		63.8	72.5	71.5
9:55am	USD		Prelim UoM Inflation Expectations		3.4%		3.8%
11:00am	USD		President Obama Speaks

Sectors Performance

 

 

What move the market 

 S&P places U.S. 'AAA/A-1+' ratings on CreditWatch Negative

Google and Citigroup blow past earnings estimates

Michigan Sentiment Survey widely misses estimates

CPI, Core CPI, Industrial Production, Capacity Utilization relatively in-line

82/90 European Banks pass the 'stress test'

Read more: http://briefing.com/investor/markets/stock-market-update/#ixzz1SQCYZ93d

Commodities

ENERGY FUTURES

CRUDE OIL 97.10 -0.14 -0.14%

NATURAL GAS 4.555 0.009 +0.2%

METAL FUTURES

GOLD 1592.80 2.70 +0.17%

SILVER 39.62 0.549 +1.41%

AGRICULTURE FUTURES

WHEAT 686.00 -8.75 -1.26%

SOYBEAN 1391.25 4.25 +0.31%

CORN 676.75 -8.25 -1.2%

SUGAR 28.97 -0.05 -0.17%

COFFEE 253.55 -4.80 -1.86%

COTTON 99.80 0.34 +0.34%

ROUGH RICE 16.93 -0.065 -0.38%

ETHANOL 2.73 -0.007 -0.26%

Treasury Yield

INTEREST RATE FUTURES

TREASURY BOND 125.9688 -0.0625 -0.05%

10-YR NOTE 124.875 0.0156 +0.01%

2-YR NOTE 109.9297 0.0078 +0.01%

Notable Earnings

Citi releases $2 billion of reserves, shares rise (8:18 am ET) NEW YORK (MarketWatch) -- Citigroup Inc. (C: news, chart, profile) said on Friday that it released $2 billion of loan-loss reserves that it had taken in previous quarters as credit losses at the bank eased from their worst crisis levels. Earlier, the firm reported that its second-quarter profit rose 24% from a year ago. In Friday preopen trading, Citi shares rose 3.8%, to $40.47.

Citigroup profit rises 24%(8:12 am ET) NEW YORK (MarketWatch) -- Citigroup Inc. (C: news, chart, profile) said on Friday that its second-quarter profit rose 24%, to $3.34 billion, or $1.09 a share, compared to $2.70 billion, or 90 cents a share a year ago. Total revenue slipped to $20.62 billion, from $22.07 billion a year ago. Analysts polled by FactSet Research had expected the company to earn 96 cents a share. The analysts had expected Citi topost revenue of $19.87 billion.

Google shares surge 13% after beating expectations(7:56 am ET) NEW YORK (MarketWatch) -- Shares of Google Inc. (GOOG: news, chart, profile) jumped 13.1% to $598 a share in premarket trade Friday, after it reported better-than-expected earnings Thursday afternoon. Google posted 36% profit growth, outstripping most Wall Street expectations, and reported $2.51 billion in earnings, or $7.68 a share, up from $1.84 billion, or $5.71 a share, same period last year.

Technical Updates

Monday 18 July, 2011 BMO

Monday 18 July, 2011 Economic Data 

9:00am	USD		TIC Long-Term Purchases			48.4B	30.6B
10:00am	USD		NAHB Housing Market Index			15	13

News

 President Barack Obama called Saturday on both parties in Congress to compromise to pass legislation needed by Aug. 2 to prevent the U.S. government from defaulting on its loan obligations.

“I’m willing to do what it takes to solve this problem, even if it’s not politically popular. And I expect leaders in Congress to show that same willingness to compromise,” he added.

 The bond market, meanwhile, continued to be little affected by the talks on Friday, with the 10-year Treasury yielding 2.94%. Read Bond Report

Earnings

Almanac 

Summary

• Obama effort to solve the problem and sense his commitment. 
• Time running out soon. 2 Aug
• Fear is growing as both options are bad raise debt ceiling or default. Choose the lesser of hell they says. 

Market Direction : Down

Accuracy : (7/11)