DOW 16880.36 -31.75 (-0.19%), NASDAQ 4462.90 +20.20 (+0.45%),
S&P500 1970.07 +0.12 (+0.01%)
Calling this will be tricky. The GDP number will determine the direction today – and will make or break this market. Any miss will likely send this market to the floor in a hurry.
But… I’m going to be a little daring and… (It’s ultimately a gamble, ok?)
To be fair, everything else screams down.
Add-on: I forgot about the FOMC Decision at 14:00. But it’s likely to be a non-event with the Fed continuing to taper at 10bln.
Direction for Wednesday 30 Jul: UP▲
That was such a divergent day. Despite being down for a good part of the day, the TRIN remained below 1. And bonds lost ground with yields gaining across the board.
And despite the beat on GDP numbers, the market dropped. The FOMC Statement gave the market a little bit of life but it wasn’t much. This market is definitely showing more weakness that it should be… And it’s unnerving me.
Market Summary
Economic Data & News
Technical Analysis
Market Internals
Bonds, Currencies & Commodities
Preview
Market Summary
Industry Watch
Strong: Consumer Discretionary, Financials, Industrials, Health Care
Weak: Consumer Staples, Energy, Telecom Services, Utilities
Other Market Moving Factors
Advance Q2 GDP beat estimates (4.0% versus Briefing.com consensus 3.2%): Q1 revised up to -2.1% from -2.9%
FOMC announces another $10 billion taper, lowering monthly purchases to $25 billion
Twitter (TWTR) beat earnings expectations and guided higher
Biotechnology supported by strong results from Amgen (AMGN)
[BRIEFING.COM] The stock market ended the Wednesday session on a mixed note with small caps displaying relative strength. The Nasdaq Composite (+0.5%) and Russell 2000 (+0.4%) registered modest gains, while the Dow Jones Industrial Average (-0.2%) and S&P 500 (+0.01%) underperformed.
Despite the mixed finish, the key indices traded higher across the board at the start of the session after the advance reading of second quarter GDP surpassed estimates (4.0% versus Briefing.com consensus 3.2%). However, the early strength was short-lived with the S&P 500 sliding into red during the opening 90 minutes of action.
One could argue that the inability to rally on a strong data point and better than expected earnings resulted from concerns about a potential fed funds rate hike taking place sooner than expected. To that point, Treasuries spent the session in a steady retreat and finished near their lows. The 10-yr note fell 26 ticks, sending its yield higher by nine basis points to 2.55%.
However, the jitters about a swift rate hike should have been partially calmed by today’s policy statement from the FOMC, which was very similar to the June directive. The Fed lowered the size of monthly asset purchases to $25 billion and reiterated that participants saw continued “significant underutilization” of labor resources. Household spending was described as “rising moderately,” while the housing sector continued recovering at a slow pace.
Despite the familiar undertone, there was a slight change in the portion of the statement dealing with inflation. Specifically, the directive acknowledged that “the likelihood of inflation running persistently below two percent has diminished somewhat,” while the prior statements focused on the potential risks stemming from inflation running below the two-percent target.
The statement did not receive unanimous support with Philadelphia Fed President Charles Plosser dissenting due to his view that the guidance is time dependent and does not reflect the considerable economic progress that has been made already.
When the dust settled, five sectors posted gains, while the other five finished in the red. Cyclical groups displayed broad strength at the open, but finished the trading day on a mixed note.
Heavily-weighted consumer discretionary (+0.6%) and financial (+0.4%) sectors hovered near their flat lines into the afternoon, but surged to the top of the leaderboard shortly after the release of the FOMC statement. In the financial sector, American Express (AXP 90.91, -0.80) lost 0.9% despite reporting better than expected earnings.
Meanwhile, the discretionary space was supported by retailers, while homebuilders slumped. The SPDR S&P Retail ETF (XRT 85.07, +0.83) added 1.0%, narrowing its July loss to 2.0%. For its part, the iShares Dow Jones US Home Construction ETF (ITB 22.59, -0.17) lost 0.8% as higher interest rates weighed.
Elsewhere, the industrial sector (+0.1%) was a notable laggard during the early portion of the session, but sprung to life in the afternoon. Transport stocks fueled the move with the Dow Jones Transportation Average climbing 0.7%. CH Robinson (CHRW 68.53, +4.12) paced the rally with a 6.4% gain after beating bottom-line estimates.
Also of note, the top-weighted sector—technology (+0.3%)—received support from chipmakers as the PHLX Semiconductor Index advanced 1.0%, which gave a boost to the Nasdaq Composite.
The tech-heavy Nasdaq also benefitted from a rally among biotech names. Amgen (AMGN 130.01, +6.70) surged 5.4% following its strong earnings and guidance, while the iShares Nasdaq Biotechnology ETF (IBB 257.25, +2.47) rose 1.0%.
The outperformance of biotech helped keep the health care sector (+0.4%) in the green even as some large cap components displayed relative weakness. WellPoint (WLP 112.47, -0.08) shed 0.1% despite beating estimates, while Humana (HUM 120.34, -7.18) lost 5.6% in reaction to an in-line report.
Another countercyclical sector—utilities—ended at the bottom of the leaderboard with a loss of 1.7% that was likely due in part to the increase in Treasury yields.
Today’s participation was an improvement when compared to recent sessions, but remained below average with less than 670 million shares changing hands at the NYSE.
Economic data included the weekly MBA Mortgage Index, ADP Employment Change, and the Q2 GDP report:
Second quarter GDP increased 4.0% in the advance release after declining an upwardly revised 2.1% (from -2.9%) in Q1 2014. The Briefing.com consensus expected GDP to increase 3.2%
Real final sales, which fell 1.0% in the first quarter, rebounded and increased 2.3%. That is still well off the pace from the second half of 2013 when real final sales increased 3.0% and 3.9%, respectively, in the third and fourth quarters
Simply put, all the predictions for 2014 economic growth that were based on the second half 2013 rebound proved to be faulty. Last year’s gains were not sustainable
Inventories added 1.66 percentage points to GDP growth in second quarter after subtracting 1.16 percentage points in Q1 2014
According to the ADP National Employment Report, employment in the nonfarm private business sector rose 218K in July, while the Briefing.com consensus expected an increase of 215K
The June reading was left unrevised at 281,000
The weekly MBA Mortgage Index fell 2.2% to follow last week’s increase of 2.4%
Global Markets
Asia
Markets gained across most of Asia
Japan’s weak preliminary industrial production (-3.3% MoM actual v. -1.0% MoM expected) data prompted the Ministry of Economy to lower its industrial assessment
Japan’s Nikkei (+0.2%) closed at its best level in more than six months
Hong Kong’s Hang Seng (+0.4%) gained for a seventh straight day as trade contends with its best levels in more than six years
China’s Shanghai Composite (-0.1%) slipped for the first time in seven sessions
India’s Sensex (+0.4%) ended just shy of all-time highs
Australia’s ASX (+0.6%) finished at its best levels since June 2008
Europe
UK’s FTSE: -0.5%
Germany’s DAX: -0.6%
France’s CAC: -1.2%
Spain’s IBEX: + 0.3%
Portugal’s PSI: -3.3%
Italy’s MIB Index: -0.9%
Irish Ovrl Index: -0.7%
Greece ASE General Index: -0.1%
Economic Data
from Briefing.com
Economic Data is listed as Actual vs Consensus. Prior Data is given in brackets. If Prior Data has been revised, revised data will be given instead, together with an indication whether it was revised upward or downward.
MBA Mortgage Index – 07:00 : -2.2% (Prior 2.4%)
ADP Employment Change – 08:15 : 218K vs 215K (Prior 281K)
GDP – Adv – 08:30 : 4.0% vs 3.2% (Prior -2.9%)
Chain Deflator – Adv – 08:30 : 2.5% vs 2.1% (Prior 1.3%)
Crude Inventories – 10:30 : -3.697M (Prior -3.969M)
FOMC Rate Decision – 14:00 : 0.25% vs 0.25% (Prior 0.25%)
GROSS DOMESTIC PRODUCT (GDP)
Highlights
Second quarter GDP increased 4.0% in the advance release after declining an upwardly revised 2.1% (from -2.9%) in Q1 2014. The Briefing.com consensus expected GDP to increase 3.2%.
Real final sales, which fell 1.0% in the first quarter, rebounded and increased 2.3%. That is still well off the pace from the second half of 2013 when real final sales increased 3.0% and 3.9%, respectively, in the third and fourth quarters.
Simply put, all the predictions for 2014 economic growth that were based on the second half 2013 rebound proved to be faulty. Last year’s gains were not sustainable.
Key Factors
Inventories added 1.66 percentage points to GDP growth in second quarter after subtracting 1.16 percentage points in Q1 2014.
Consumption growth accelerated, up 2.5% after increasing only 1.2% in the first quarter. Goods spending increased 6.2%, with a 17.5% increase in motor vehicle and parts spending contributing much of the gain. Services spending increased 0.7%.
Fixed investment increased 5.9% after increasing 0.2% in Q1 2014.
Nonresidential investment rose 5.5% in the second quarter, up from a 1.6% increase in Q1 2014. Spending on equipment rebounded from a 1.0% decline in the first quarter and increased 7.0% in the second. Structures spending increased 5.5% and intellectual property products investment increased 3.5%.
Residential investment spending ended two consecutive quarterly declines and increased a modest 7.5%.
The net export deficit widened to $470.3 bln in the second quarter from $447.2 bln in Q1 2014. That was the largest net export deficit since Q3 2010. The increase in the net export deficit reduced GDP by 0.61 percentage points.
After falling 9.2% in the first quarter, exports increased 9.5% in Q2 2014. Imports rose 11.7% in the second quarter after increasing 2.2% in the first.
Government spending increased 1.6% after falling in each of the previous two quarters.
Big Picture
GDP rebounded nicely following the unexpected decline in the first quarter. However, economic growth is still well off the pace from the second half of 2013, and overall GDP gains are not coming close to early 2014 predictions.
FOMC STATEMENT
Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources. Household spending appears to be rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has moved somewhat closer to the Committee’s longer-run objective. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators and inflation moving toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced and judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat.
$10 bln taper remains the same.
The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Stanley Fischer; Richard W. Fisher; Narayana Kocherlakota; Loretta J. Mester; Jerome H. Powell; and Daniel K. Tarullo. Voting against was Charles I. Plosser who objected to the guidance indicating that it likely will be appropriate to maintain the current target range for the federal funds rate for “a considerable time after the asset purchase program ends,” because such language is time dependent and does not reflect the considerable economic progress that has been made toward the Committee’s goals.Statement Regarding Purchases of Treasury Securities
In Other News…
HEADLINE NEWS
Amazon.com (AMZN) to invest $2 bln in India, according to reports
Apple (AAPL) iPad market share worldwide may fall below 25% in H2 of this year, according to reports
Baxter (BAX) announces divestiture of commercial vaccines business to Pfizer (PFE); Baxter expects the transaction to be modestly dilutive to Q4 2014 adjusted earnings and dilutive to 2015 adjusted earnings by ~$0.15 per diluted share
Netflix (NFLX) plans to pay AT&T (T) to reduce buffering delays, according to reports
Newfield Expl (NFX) signs agreement to sell its Granite Wash assets for $588 mln
Perrigo (PRGO) confirms first to file patent challenge for generic version of Topicort topical spray 0.25%
U.S. Attorney’s Office alters allegations against PG&E (PCG), filing a new indictment that will replace an indictment filed in April
Tyco (TYC) to seek shareholder approval of proposed change in place of incorporation to Ireland
EARNINGS/GUIDANCE
AFLAC (AFL) beats by $0.07, reports revs in-line; guides Q3 EPS below consensus; guides FY14 EPS in-line
American Express (AXP) beats by $0.05, reports revs in-line
Amgen (AMGN) beats by $0.30, beats on revs; guides FY14 EPS above consensus, revs above consensus
Anadarko Petroleum (APC) beats by $0.03, beats on revs; see 16:05 post for guidance (co raises sales volume guidance in that release)
CB Richard Ellis (CBG) reports EPS in-line, revs in-line; raises FY14 EPS guidance range by $0.05
C.H. Robinson (CHRW) beats by $0.04, reports revs in-line
Dominion (D) reports EPS in-line; guides Q3 EPS in-line; reaffirms FY14 EPS guidance
Garmin (GRMN) beats by $0.26, beats on revs; raises FY14 guidance above; announces intercompany restructuring
Hess (HES) beats by $0.20, beats on revs
Marriott (MAR) beats by $0.04, reports revs in-line; guides Q3 EPS in-line; guides FY14 EPS in-line
Sprint (S) beats by $0.06, reports revs in-line; reaffirms FY14 adj. EBITDA guidance
Twitter (TWTR) beats by $0.03, beats on revs; guides Q3 revs above consensus, raises FY14 guidance
U.S. Steel (X) reports Q2 (Jun) results, beats on rev
Valero Energy (VLO) beats by $0.02 (in line with pre-announcement), beats on revs
ANALYST ACTIONS
Upgrades
C.H. Robinson (CHRW) upgraded to Neutral from Underperform at BofA/Merrill
Twitter (TWTR) upgraded to Buy from Neutral at BofA/Merrill; upgraded to Mkt Perform from Underperform at Cowen; upgraded to Neutral from Sell at UBS
United Continental (UAL) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $60.50 from $43.50
Windstream (WIN) upgraded to Neutral from Reduce at Nomura, tgt raised to $13 from $7.50; upgraded to Neutral from Sell at UBS
Downgrades
AFLAC (AFL) downgraded to Sector Perform from Sector Outperform at Scotia Capital
Cablevision (CVC) downgraded to Sell from Neutral at Citigroup
Intl Paper (IP) downgraded to Underperform from Outperform at Credit Agricole
Michael Kors (KORS) downgraded to Neutral from Outperform at Robert W. Baird
Natl Oilwell Varco (NOV) downgraded to Hold from Buy at Jefferies; tgt lowered to $91 from $95
Twitter (TWTR) downgraded to Sell from Hold at Pivotal Research; tgt raised to $38 from $37
Verizon (VZ) downgraded to Neutral from Outperform at Macquarie; tgt $53
Windstream (WIN) downgraded to Mkt Perform from Outperform at Raymond James
Other
Twitter (TWTR) tgt raised to $55 from $48 at Evercore; tgt raised to $60 from $48 at Janney; tgt raised to $60 from $46 at Barclays
Technical Analysis
DOW JONES INDUSTRIAL AVERAGE
16880.36 -31.75 (-0.19%)
Volume: 77,746,377 (above average of 76,714,488)
Range: 16817.16 – 16983.94
NASDAQ COMPOSITE
4462.90 +20.20 (+0.45%)
Volume: 457.6M (below average of 457.8M)
Range: 4444.51 – 4476.06
S&P500 INDEX
1970.07 +0.12 (+0.01%)
Volume: 477.0M (above average of 450.7M)
Range: 1962.42 – 1978.90
The DOW now sits on its lower Bollinger Band. The band is either going to expand to accommodate or it will bounce. I suspect the former. It’s a goner anyway.
1960 on the S&P500 for now looks like decent support, and I’ll be eyeing those levels.
Market Internals
NYSE:
Higher Volumes than the day before – 680.4M vs 627.7M
Decliners outpaced Advancers (adv/dec): 1182 / 1867
New Highs outpaced New Lows (highs/lows): 79 / 53
NASDAQ:
Lower Volumes than the day before – 1867.7M vs 2087.5M
Advancers outpaced Decliners (adv/dec): 1600 / 1105
New Highs outpaced New Lows (highs/lows): 59 / 55
VOLATILITY S&P500 (VIX)
13.33 +0.05 (+0.38%)
Decliners outpaced Advancers by 1.07 on lower volumes than the day before (-167.1M -6.15%).
Still a bearish day, although the volumes aren’t supportive.
The VIX has definitely started an uptrend for now… which is scary.
Treasury Bonds, Currencies & Commodities
from Briefing.com
Treasury Bonds
Yields Surge as GDP Prints 4.0% and the Fed Tapers:
Treasuries were hit hard, pressured by the stronger than expected Q2 GDP-Adv. (4.0% actual v. 3.2% expected) report.
Other data saw the MBA Mortgage Index dip -2.2% and ADP Employment Change print 218K (215K expected).
Maturities held small losses into this morning’s release before the better than expected growth pressed the complex to its lows.
Steady selling would persist into this afternoon’s average $29 bln 7y note auction.
The auction drew 2.250% (WI 2.245%) and a 2.58x bid/cover. A light direct bid (15.2%) was supported by a larger than usual indirect takedown (47.3%), leaving primary dealers with 37.5% of the supply.
Treasuries drifted near session lows into the FOMC rate decision, which produced another $10 bln taper to the Fed’s asset purchase program.
Notable were comments indicating “a range of labor market indicators suggests that there remains significant underutilization of labor resources” and that “the likelihood of inflation running persistently below 2 percent has diminished somewhat.”
Maturities finished near their worst levels of the session following an initial post-FOMC bid.
Up front, the 2y finished @ 0.559%, its highest since May 2011. The yield threatened the 0.600% level, but was unable to retake the mark.
In the belly, the 5y climbed +8.3bps to 1.769%. Action closed at a four-month high after probing 1.800% and flirting with its highest close of 2014.
The 10y jumped +9.2bps to 2.554%. Today’s selling ran the benchmark yield to a three-week high as action reclaimed the 50 dma.
At the long end, the 30y added +8.8bps to 3.310%. Weakness wiped away nearly two weeks of gains, and ran the yield off a 13-month low. Resistance near 3.340% will be watched closely in the days ahead.
Selling swung the curve steeper as the 2-10-yr spread widened to 199.5bps and the 5-30-yr spread expanded to 154bps.
2Yr 0.56 (+0.02), 5Yr 1.77 (+0.07), 10Yr 2.57 (+0.10), 30Yr 3.31 (+0.09)
2/10 Spread: 201bps (+8); 2/30 Spread: 275bps (+7)
Currencies
Dollar Hits 10-Month High: 10-yr: -20/32..2.539%..USD/JPY: 102.79..EUR/USD: 1.3392
The Dollar Index remains on session highs near 81.50 after the Fed announced another $10 bln taper to its asset purchase program. Click here to see a daily Dollar Index chart.
Today’s advance has the greenback on track to close at levels last seen in September.
Notable excerpts from the statement include comments suggesting “a range of labor market indicators suggests that there remains significant underutilization of labor resources” and that “inflation has moved somewhat closer to the Committee’s longer-run objective.”
EURUSD is -25 pips @ 1.3385 as trade slides to its lowest levels in nearly nine months. Selling over the course of July has wiped away roughly 300 pips while pushing trade below key 1.3500 support. Eurozone data is heavy as CPI Flash Estimate and the unemployment rate accompany French consumer spending and German retail sales and unemployment change.
GBPUSD is -30 pips @ 1.6915 as sellers remain in control for a ninth time in ten sessions. Today’s weakness has the pair contending with support in the 1.6900 region as action dips to levels last seen in the middle of June. The 100 dma provides further help near 1.6855. Britain’s Nationwide Home Price Index is set for tomorrow.
USDCHF is +20 pips @ .9090 as action flirts with its best levels of 2014. An early KOF Economic Barometer miss has aided by bulls, but trade remains dictated by the euro thanks to the Swiss National Bank’s EURCHF1.20 floor.
USDJPY is +65 pips @ 102.75 as action looks almost surely to put in a ninth straight gain. The overnight industrial production miss in Japan got the buying started with trade managing to briefly probe three and a half-month highs above 103.00 in the aftermath of the Fed decision. Japanese data is limited to average cash earnings.
AUDUSD is -45 pips @ .9335 as action flirts with its lowest close since the beginning of June. Today’s weakness has broke .9350 support before producing a test of the 100 dma (.9315). Australia’s building approvals and import prices will cross the wires tonight.
USDCAD is +40 pips @ 1.0890 as trade rallies to a one and a half-month high. A hotter than expected Raw Materials Price Index (1.1% MoM actual v. 0.6% MoM expected) print has been unable to deter the bulls as action probes resistance defended by the 100 dma. Canada’s GDP is scheduled for release tomorrow.
Commodities
Closing Commodities: Crude Falls 0.6%, Drops Below $100/Barrel In Electronic Trade
Aug gold fell into negative territory in morning action as the dollar index strengthened after an advance GDP reading showed a 4.0% expansion during Q2 (Briefing.com consensus expected GDP to increase 3.2%). The move lower also came ahead of the latest policy statement from the FOMC released at 14:00 ET. The yellow metal slipped from its session high of $1303.00 per ounce and spent the remainder of the session trading in the red. It eventually settled with a 0.3% loss at $1294.80 per ounce.
Sep silver popped to a session high of $20.67 per ounce in morning trade after trading as low as $20.48 per ounce earlier in the session. The move was short lived, however, as it quickly retreated towards the unchanged line and settled just 1 cent higher at $20.59 per ounce.
Sep crude oil fell for a third consecutive session despite better-than-anticipated inventory data. The energy component advanced to a session high of $101.67 per barrel when the EIA reported that crude oil inventories had a draw of 3.7 mln barrels when consensus called for a draw of 1.2-1.5.
However, prices quickly turned negative and trended lower for the remainder of the session, leaving crude oil to settle with a 0.6% loss at $100.27 per barrel.
In electronic trade, Sept crude oil just hit a new LoD of $99.57/barrel and is -1.3% at $99.63/barrel
Sep natural gas traded in the red today, dipping to a session low of $3.75 per MMBtu. Unable to find buying support, it settled with a 1.0% loss at $3.78 per MMBtu.
NYMEX Energy Closing Prices
Sep crude oil fell $0.64 to $100.27/barrel
Crude oil fell for a third consecutive session despite better-than-anticipated inventory data. The energy component advanced to a session high of $101.67 on the EIA report that showed crude oil inventories had a draw of 3.7 mln barrels when a smaller draw of 1.2-1.5 mln barrels was expected. However, prices quickly turned negative and trended lower for the remainder of the session. Crude oil eventually settled with a 0.6% loss.
Sep natural gas fell 4 cents to $3.78/MMBtu
Natural gas traded in the red today, dipping to a session low of $3.75. Unable to find buying support, it settled with a 1.0% loss.
Sep heating oil fell 1 cent to $2.90/gallon
Sep RBOB fell 2 cents to $2.82/gallon
CBOT Agriculture and Ethanol/ICE Sugar Closing Prices
Sep corn settled unchanged at $3.62/bushel
Sep wheat rose 7 cents to $5.28/bushel
Aug soybeans fell 7 cents to $12.22/bushel
Sep ethanol fell 4 cents to $2.04/gallon
Sep sugar (#16 (U.S.)) rose 0.03 of a penny to 24.68 cents/lbs
COMEX Metals Closing Prices
Aug gold fell $3.40 to $1294.80/oz
Gold fell into negative territory from its session high of $1303.00 in morning action as the dollar index strengthened after an advance GDP reading showed a 4.0% expansion during Q2 (Briefing.com consensus expected GDP to increase 3.2%). In addition, investors await the latest policy statement from the FOMC expected to come out at 14:00 ET. The yellow metal spent the remainder of the session trading in the red and settled with a 0.3% loss.
Sep silver rose $0.01 to $20.59/oz
Silver popped to a session high of $20.67 in morning pit trade after trading as low as $20.48 earlier in the session. However, it quickly retreated towards the unchanged line and eventually settled just 1 cent higher.
Sep copper rose 2 cents to $3.24/lbs
Preview: Thursday 31 Jul
Economic Data
Economic Data is listed as Consensus by default. Prior data will be given in brackets. If Consensus Data is not available, Prior data will be given without brackets.
Challenger Job Cuts – 07:30 : Prior -20.2%
Initial Claims – 08:30 : 310K (Prior 284K)
Continuing Claims – 08:30 : 2525K (Prior 2500K)
Employment Cost Index – 08:30 : 0.4% (Prior 0.3%)
Chicago PMI – 09:45 : 61.8 (Prior 62.6)
Natural Gas Inventories – 10:30 : Prior 90bcf
Corporate Earnings
BMO :
AAWW ABMD ACIW ACOR ADP AGI ALU AMRC APA ASEI ATK AUXL AVP AYR AZN BCOR BDX BG BGCP BKCC BLL BUD BWA BZH CBM CCJ CDW CEVA CHTR CI CL CMCO CME CNSL COMM COP COT CRCM CRR CTCM CVI CVRR DDD DISCA DLPH DTV ENDP EPD ESI EVRY EXC FCH FCN FIG FLY FRM GEL GG GHM GIL GMT GNRC GOV GPX GTLS H HEES HGG HHS HL HP HST IDA IIVI IMN INCY IRDM IRM ITG ITT IVZ K KMT LBY LKQ LLL LM MA MCK MD MDCI MDP MFA MNTA MOD MOS MPC MPLX MSCI MTOR MWIV NGD NI NJR NPO NWL OAK OCN ODFL ORN OXY PCG PCRX PES PNR PNW PPL PRFT PWR Q QLTI RFP RGEN RYL SBH SC SCG SFY SHOO SNAK SNE SNMX SRI STAY STC STFC STRA STRZA SUP SWC TE TEVA TKR TOWR TRP TRS TWC UAN UPL USAK VG VICL VNTV VRX WLT WST WWE XEL XOM XRAY
AMC :
ABCO ABTL ACGL ADES ADNC ADUS AFFX AHX AIV AMSG ARR ARRS ASH AVD AXTI BAGL BBG BBRG BEAT BRKS BSAC BYD CALD CERS CHEF CPSI CPT CTRL CYH DATA DCT DEI DGI DRC DVA DXPE EEP EGO EIX ELLI EPIQ ESC ESIO EXEL EXPE FFG FLDM FLR FLT FNGN G GB GDOT GFIG GPRO GSIT HME HNSN IMMR IMPV JIVE JLL KERX KEYW KOG KRG KWR LBTYA LNKD LOPE LRE LYV MATX MCC MCHP MELI MGRC MHK MRC MXL MXWL NGVC NKTR NSIT NU OCLR OIS OMCL ONNN OPEN OUTR PCCC PCYC PKI PLNR PMCS PPS PSA PXLW QLTY RMD RMTI SGEN SKUL SPFSPWR SRDX SREV SSNC SWIR SWN SYNA THG THRX TMST TNAV TNDM TRLA TSLA TSYS VCRA VTL WPRT WSTC WU WWWW YRCW
Other Events of Interest
Fed/Treasury/Political Events
None
Economic Events
Eurozone CPI & Unemployment Rate – 04:00
China HSBC Manufacturing PMI – 20:45
Analyst/Investor Meetings
None
Conclusion
The market is showing too much weakness for comfort. Tomorrow will likely be a relatively flat day ahead of the Employment Numbers on Friday.
Direction for Thursday 31 Jul: DOWN▼
Daily Directional Accuracy (from 14 May 2014): 37/53 (69.81%)
Weekly Directional Accuracy (from 16 May 2014): 6/10 (60.00%)