Market News

[James48843]

Durable Goods report is now out, and it looks bloody. Sales decreased, while inventories rose. Not a positive indicator that I was expecting. More evidence of a slowdown in the growth:

http://www.census.gov/indicator/www/m3/index.htm

New Orders

New orders for manufactured durable goods in June increased $3.0 billion or 1.4 percent to $217.1 billion, the U.S. Census Bureau announced today. This was the fourth increase in the last five months and followed a 2.3 percent May decrease.

Excluding transportation, new orders decreased 0.5 percent. Excluding defense, new orders increased 1.9 percent.

Shipments

Shipments of manufactured durable goods in June, down following three consecutive monthly increases, decreased $2.3 billion or 1.1 percent to $212.5 billion. This followed a 0.6 percent May increase.

Unfilled Orders

Unfilled orders for manufactured durable goods in June, up twenty-five of the last twenty-six months, increased $10.7 billion or 1.5 percent to $736.5 billion. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.9 percent May increase.
Inventories

Inventories of manufactured durable goods in June, up sixteen consecutive months, increased $0.7 billion or 0.2 percent to $313.4 billion. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.1 percent May increase.
Capital Goods Industries

Nondefense
Nondefense new orders for capital goods in June increased $3.4 billion or 4.6 percent to $76.2 billion.

Defense
Defense new orders for capital goods in June decreased $1.1 billion or 13.9 percent to $7.0 billion.

 

[James48843]

Tom- you may be getting that 10% pullback you were looking for.....

 

[fedgolfer]

Is tomorrow's GDP report a possible catalyst to see institutional buying? We need a bid green candlestick with heavy volume... looking at the econ calendar, I'm not sure what event may trigger it. Any guesses? Maybe a suprise in the GDP report and some killer earnings?

 

[nnuut]

Any predictions on the GDP tomorrow. I'm blocked from Briefing.com here at work? Good numbers can turn this thing around. MHO

 

[fedgolfer]

Jul 27 08:30 GDP-Adv. Q2 Briefing est:3.5%
Consensus:3.2%
Prior: 0.7%


Also out tomorrow:
Jul 27 08:30 Chain Deflator-Adv. Q2 3.6% 3.4% 4.2%
Jul 27 10:00 Mich Sentiment-Rev. Jul 92.4 91.5 92.4

 

[nnuut]

Looks good to me if it comes in over or at estimates. Will this effect the "C" more than the "S" or viisa versa?

 

[weatherweenie]

Today after the close of the many companies scheduled to report look for: AMGN, AVID, BJRI, BFAM, CHRT, CNET, COHU, CPWR, CROX, CYMI, DECK, DRIV, BOOM, ESLR, FLEX, FRNT, GNSS, GNW, IM, KLAC, LWSN, MCHP, NTGR, PXLW, QLGC, RACK, RVBD ULTI, VRSN, WDC and YRCW. Tomorrow before the open look for the following companies to report: ASVI, BHI, BPO, CVX, CEG, FO, GMST, IR, LZ, MHS, and SEPR.

 

[weatherweenie]

Briefing.com:
08:33 am : S&P futures vs fair value: -8.1. Nasdaq futures vs fair value: -5.0. An advance read on GDP just showed that the U.S. economy grew at a much healthier than expected 3.4% pace in Q2 (consensus 3.2%) compared to the downwardly revised 0.6% growth in Q1. The chain deflator -- a key inflation measure -- ticked lower to 2.7% (consensus 3.4%). The response in stocks so far has been positive but by no means has the futures market found the dated data encouraging enough to climb above fair value. Bonds, though, have exhibited a relatively muted response; the 10-yr note is still up 8 ticks to yield 4.75%.

 

[weatherweenie]

Here's hoping Ralphie drops the soap!!!

Ex-Qwest CEO Nacchio Gets 6 Years in Prison in Insider Trading Case; Bail Denied

http://biz.yahoo.com/ap/070727/qwest_nacchio_sentencing.html?.v=12

 

[weatherweenie]

Nikkei is down 1.09% now.

TOKYO, July 30 (Reuters) - The Nikkei share average fell 0.84 percent on Monday, after Prime Minister Shinzo Abe's ruling coalition suffered a crushing defeat in an upper house election on Sunday and U.S. stocks plunged on Friday on credit concerns.

 

[weatherweenie]

8:00am ET
[BRIEFING.COM] S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: -4.3. Early indications suggest last week's broad-based selling efforts will carry over into this morning's open. While there is little in the way of specific news to account for the negative disposition, concerns related to the unknown risks in the credit market are still running high.
Fears that a credit crunch is developing and potentially signaling an end to the LBO buyout boom that has provided so much support for equities this year is further echoed in the fact that today doesn't mark a Monday of any blockbuster deal making.

 

[weatherweenie]

Today after the close of the many companies scheduled to report look for: ACTU, AATI, AMMD, CSC, CVTX, EXP, FARO, FTI, IVAC, OSIP, PWAV, RADN, SIMO, SUNW, TXRH, UDR and VMC. Tomorrow before the open of the many companies scheduled to report look for: AG, AL, ALU, ARJ, AUXL, AVP, BEAV, BPHX, CFUN, COH, CBH, ETR, EEE, FSRV, FDP, GPI, HW, JMA, IMCL, IACI, LCAB, LIZ, MHO, MRO, NCR, UWN, NMX, ONNN, OSTK, RTIX, RJET, TWP, UA, VLO, and WMI.

 

[weatherweenie]

Briefing.com
09:40 am : Stocks are picking up where they left off yesterday, trading sharply higher, as investors rally around a batch of solid earnings reports and a benign read on inflation. Sun Microsystems (SUNW 5.32 +0.43) posting its third straight profitable quarter last night initially helped set a good tone heading into today. The stock is up nearly 9%. Dow component General Motors (GM 33.96 +1.35) swinging to a much larger than expected Q2 profit, though, has been the big earnings driver this morning. GM shares are up 4%.
With inflation still the predominant concern among policy makers, the Fed's favored inflation gauge (i.e. core PCE) rising just 0.1% for the fourth straight month has also helped pave the way for another day of broad-based buying. That left the year-over-year rate at 1.9% and within the Fed's 1.0% to 2.0% "comfort zone," offering further evidence that core prices are falling faster than expected.

 

[weatherweenie]

8:00am ET
[BRIEFING.COM] S&P futures vs fair value: -9.9. Nasdaq futures vs fair value: -8.5. Early indications suggest yesterday's subprime-induced reversal will carry over into this morning's opening bell. Reports that a third Bear Stearns (BSC) hedge fund with about $900 mln in mortgage investments has suspended investor redemptions and expects huge losses is taking a toll on sentiment. Australia's Macquarie Bank Ltd. saying that investors in two of its funds may lose as much as 25% due to the subprime fallout in the U.S. has been another source of anxiety fostering a more risk-averse mindset among investors.
With Friday's July jobs report pegged as one of this year's most important economic reports, the upcoming monthly ADP employment report (8:30 ET) may garner more attention than usual and is likely contributing to the widespread reserve on the part of buyers.

 

[weatherweenie]

8:30am ET
[BRIEFING.COM] S&P futures vs fair value: -7.1. Nasdaq futures vs fair value: -8.0. Within the last 15 minutes the monthly ADP employment report showed that only an estimated 48,000 new private jobs were created in July, the lowest since July 2003. Since that equates to roughly 73,000 nonfarm jobs, which is well below the 135,000 economists are forecasting the Labor Dept. to show on Friday, the weak data prompted a knee-jerk reaction to the downside in futures trading. However, since the ADP report lacks credibility compared to the more closely-watched and well-established government data, both the S&P 500 and Nasdaq 100 futures are bouncing back somewhat, but not nearly enough to suggest a recovery from yesterday's sell-off as the underlying tone remains bearish amid ongoing subprime concerns.

 

[Fivetears]

U.S. stock futures slide in global sell-off.
http://www.reuters.com/article/marketsNews/idINL0132461920070801?rpc=44

 

[weatherweenie]

Gettin a little better

9:00am ET
[BRIEFING.COM] S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: -5.0. Early sentiment continues to improve, but futures hitting their best levels of the morning still signal a dismal start for stocks. Time Warner (TWX) topping forecasts and planning a $5 bln buyback offered some support earlier; but reports that MetLife's (MET) subprime mortgage securities are 98% AA or AAA rated may be offering some added relief since such underlying fears of the subprime fallout are so impossible to quantify.

 

[weatherweenie]

http://biz.yahoo.com/ap/070801/pending_home_sales.html?.v=3

Pending Home Sales Index Rises 5 Percent in June, Surprising Wall Street

WASHINGTON (AP) -- Pending sales of existing homes rose by 5 percent in June compared with the previous month, a surprisingly positive sign for the beleaguered housing market, a real-estate trade group said Friday.

 

[Show-me]

Not to be a stick in the mud, but those some of those "pending" home sales will not go through because AHM got their credit axed on loans that were also pending. IMO those number are not correct right out of the gate because those folk can't get the money from AHM, but we will have to see the revision.

 

[weatherweenie]

AP -
Oil prices jumped to a new record Wednesday after the government reported a steep drop in crude inventories last week as refinery utilization surged.