Updated: 07-31-2015

The Market at 04:10PM ET
Dow: -55.52… | Nasdaq: -0.50… | S&P: -4.79…
NASDAQ Vol: 1.74 bln… Adv: 1637… Dec: 1222…
NYSE Vol: 957.5 mln… Adv: 1952… Dec: 1144…

Moving the Market

Q2 Employment Cost Index disappoints (+0.2%; Briefing.com consensus 0.6%): Treasuries and futures rally, dollar slides

Dow components Chevron (CVX) and ExxonMobil (XOM) pressure energy sector in reaction to disappointing results

S&P 500 +2.2% in July, entering Friday

Sector Watch
Strong: Consumer Discretionary, Health Care, Industrials, Utilities
Weak: Energy, Financials, Materials, Technology

04:10PM ET
[BRIEFING.COM] The stock market ended July on a cautious note with the S&P 500 shedding 0.2%. Despite today's downtick, the benchmark index added 1.2% for the week, ending the month higher by 2.0%. Meanwhile, the Nasdaq Composite ended flat, locking in a 2.8% gain for July.

Equities held modest gains at the start thanks to a pre-market jump in the futures market after it was reported that the Employment Cost Index increased just 0.2% in the second quarter while the Briefing.com consensus expected an increase of 0.6%. The lack of strong wage growth was viewed as an argument in favor of the Federal Reserve delaying its first rate hike, which gave a boost to equity futures and Treasuries. The 10-yr note surged immediately after the report was released, and remained near its high into the close, sending the benchmark yield lower by six basis points to 2.20%.

Meanwhile, stocks climbed during the first three hours of action, but relative weakness among several cyclical sectors acted as a drag on the broader market, pulling the S&P 500 to new lows during the afternoon.

Most notably, the energy sector tumbled 2.6%, widening its July decline to 7.8% after Dow components Chevron (CVX 88.48, -4.55) and ExxonMobil (XOM 79.21, -3.80) reported disappointing results. The two names posted respective losses of 4.9% and 4.6% while crude oil slid 2.9% to $47.12/bbl. For the month, the energy component plunged more than 21.0%, returning to its January low.

Elsewhere among growth-sensitive sectors, financials (-0.4%) and technology (-0.5%) lagged throughout the day with high-beta chipmakers pressuring the technology sector. The PHLX Semiconductor Index lost 1.2%, ending the month lower by 5.0% while KLA-Tencor (KLAC 53.05, +0.99) bucked the trend, rallying 1.9%, in reaction to a bottom-line beat.

Typically, underperformance in the technology sector tends to be consistent with weakness in the Nasdaq, but the tech-heavy index outperformed today thanks to gains in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 382.53, +3.73) gained 1.0% after Amgen (AMGN 176.59, +4.90) beat estimates and raised its guidance. Shares of AMGN spiked 2.9% while the broader health care sector (+0.5%) ended among the leaders, drawing secondary support from the likes of Molina Health (MOH 75.28, +7.28), and Universal Health Systems (UHS 145.23, +3.79) after the two reported better than expected results.

Similar to health care, the three other countercyclical groups settled ahead of the broader market. The utilities sector spiked 1.0% while consumer staples (+0.1%) and telecom services (+0.1%) posted slimmer gains.

Today's participation was ahead of recent averages with more than 915 million shares changing hands at the NYSE floor.

Economic data included Employment Cost Index, Chicago PMI, and Michigan Sentiment:
  • Employment costs rose 0.2% in Q2 2015 after a 0.7% increase in the first quarter while the Briefing.com consensus expected an increase of 0.6% 
    • That was the smallest increase in employment costs since the index was created in 2001 
  • The Chicago PMI increased to 54.7 in July from 49.4 in June while the Briefing.com consensus expected an increase to 54.7 
    • The reading represented the first increase in three months 
    • There was a large improvement in production as the related index increased to 61.8 in July from 49.8 in June. The production gain came on the heels of strengthening growth in the new orders index, which rose to 58.5 from 51.7 
  • The University of Michigan Consumer Sentiment Index was revised down to 93.1 in the final June reading from 93.3 in the preliminary report while the Briefing.com consensus expected an increase to 94.0 
    • The index is down from 96.1 in June, which was the best reading since January 
    • The Expectations Index was revised down from 85.2 in the preliminary reading to 84.1 while the Current Conditions Index was revised up to 107.2 from 106.0
On Monday, June Personal Income/Spending data and Core PCE Prices will be reported at 8:30 ET while June Construction Spending and July ISM Index will both be reported at 10:00 ET.
  • Nasdaq Composite +8.3% YTD 
  • S&P 500 +2.2% YTD 
  • Russell 2000 +2.8% YTD 
  • Dow Jones Industrial Average -0.7% YTD 
Week in Review: Technical Levels in Focus

The stock market began the trading week on a cautious note with the S&P 500 (-0.6%) settling just above its 200-day moving average (2,064) while the Nasdaq Composite (-1.0%) underperformed. Equity indices spent the entire day in negative territory after the overnight session was highlighted by an 8.5% plunge in China's Shanghai Composite, which endured its largest one-day decline in more than eight years. The index widened its slide from June highs to 28.0%, falling to lows during the final hour of action after the International Monetary Fund voiced concerns about the degree of recent government intervention in the market. The overseas weakness weighed on investor sentiment in Europe and the U.S. while German Bunds (10-yr yield -6 bps to 0.65%) and U.S. Treasuries (10-yr yield -4 bps to 2.23%) advanced. Nine sectors finished the day in negative territory with all six cyclical groups ending in the red. Furthermore, five of six growth-sensitive groups settled behind the broader market while the industrial sector (-0.4%) ended just ahead. Similar to the sector, high-beta transport stocks fared better than the broader market with the Dow Jones Transportation Average shedding 0.2%.

Equities snapped their five-day losing streak with a daylong Tuesday rally that sent the S&P 500 higher by 1.2%. The benchmark index tested its 100-day moving average (2,095) during afternoon action while the Nasdaq Composite (+1.0%) underperformed throughout the day. The key indices rebounded from losses registered over the past week, starting the day on an upbeat note after the overnight session saw more volatility in Asia. Specifically, China's Shanghai Composite was down as much as 5.1% at the start of the trading day, but narrowed its loss to 1.7% by the close. The turnaround off session lows coincided with a spike in S&P 500 futures in the wee hours of the morning. All ten sectors posted gains with some of the recent underperformers leading the market higher. To that point, the energy sector surged 2.9% after sliding 4.3% over the past five days. The growth-sensitive sector was lifted by the shares of BP (BP 37.29, +1.24) after the industry giant reported a bottom-line miss on better than expected revenue. Another large sector member, LyondellBasell (LYB 92.46, +2.61) spiked 2.9% in reaction to a bottom-line beat. On a related note, crude oil rose 1.3% to $47.98/bbl, providing added support.

The market registered its second consecutive advance on Wednesday with the S&P 500 climbing 0.7% to extend its weekly gain to 1.4%. The benchmark index overtook its 100- (2,095) and 50-day moving averages (2,100) during morning action while the tech-heavy Nasdaq (+0.4%) struggled to keep pace with the broader market. Equity indices began the day with slight gains after China's Shanghai Composite spiked 3.4% overnight, which improved risk tolerance among global investors. The Dow and S&P 500 rallied throughout the session while the Nasdaq hovered near its opening levels into the afternoon before setting new highs ahead of the close. The tech-heavy index was pressured by biotechnology as iShares Nasdaq Biotechnology ETF (IBB 377.43, -5.41) lost 1.4% despite better than expected earnings from Gilead Sciences (GILD 115.71, +2.64). Shares of GILD spiked 2.3% while the broader health care sector (+0.2%) settled among the laggards. Elsewhere, Twitter (TWTR 31.24, -5.30) sank 14.5% after the company's bottom-line beat was overshadowed by cautious commentary regarding user growth outlook.

The stock market ended the Thursday session on a slightly higher note after rebounding off its opening low. The S&P 500 settled just above its flat line while the Nasdaq Composite (+0.3%) outperformed. Equities faced some early weakness after the overnight session saw renewed selling in China that sent the Shanghai Composite lower by 2.2%. Furthermore, index futures dropped to new lows ahead of the opening bell after the advance reading of Q2 GDP pointed to an expansion of 2.3%, while the Briefing.com consensus expected a reading of 2.5%. Meanwhile, the first quarter reading was revised up to 0.6% from -0.2%. The GDP report was met with a rally in the Treasury market as the 10-yr note spiked off its low and continued advancing into the afternoon, dropping its yield three basis points to 2.26%.
Dow: -55.52… | Nasdaq: -0.50… | S&P: -4.79…
NASDAQ Adv/Dec 1637/1222. …NYSE Adv/Dec 1952/1144.

03:35PM ET
[BRIEFING.COM]
  • The dollar remained in the red all day, which helped weigh on commodities
  • The index climbed slowly higher all session following the morning sell-off, but is still down 0.4%.
  • WTI crude oil futures have been weak all day and just now hit a new low for today in electronic trade
  • During today's pit session, Sept crude oil lost -2.9% to finish at $47.11/barrel. It's now $46.82/barrel.
  • Sept nat gas fell -2.2% to end at $2.71/MMBtu
  • Metals were mixed with precious metals higher and copper down again
  • Aug gold rose +0.6% to $1095.00/oz, while Sept silver gained +0.3% to $14.74/oz
  • Sept copper dropped -0.8% to end at $2.36/lb
Dow: -56.29… | Nasdaq: -1.24… | S&P: -4.37…
NASDAQ Adv/Dec 1534/1291. …NYSE Adv/Dec 1869/1213.

02:55PM ET
[BRIEFING.COM] The S&P 500 trades lower by 0.1% with one hour remaining in the session.

Equity indices climbed through the first half of the session, but the relative weakness among most cyclical sectors has proven too heavy for the market. At this juncture, five growth-sensitive groups trade in negative territory while the consumer discretionary sector outperforms with a gain of 0.3%.

Including today's advance, the discretionary sector is on track to end the month ahead of other cyclical groups with a solid 4.7% gain.

Elsewhere, Treasuries are on track to end the day just below their highs with the 10-yr yield down five basis points at 2.20%.
Dow: -49.64… | Nasdaq: +4.74… | S&P: -2.50…
NASDAQ Adv/Dec 1730/1053. …NYSE Adv/Dec 2024/1045.

02:25PM ET
[BRIEFING.COM] Afternoon action continues with the S&P 500 (-0.2%) trading at a fresh session low. The benchmark index has returned into the red as the continued weakness in sectors like energy (-2.2%), financials (-0.3%), and technology (-0.5%) offsets gains in the four countercyclical groups.

Despite the current downtick, the benchmark index remains on track to end the week higher by 1.3%. Furthermore, the S&P 500 trades about five points above its 50-day moving average (2,100) after testing that level during yesterday's session.

Elsewhere, Treasuries remain near their highs with the 10-yr yield down six basis points at 2.20%.
Dow: -59.21… | Nasdaq: +1.84… | S&P: -3.78…
NASDAQ Adv/Dec 1714/1057. …NYSE Adv/Dec 2035/1029.

02:00PM ET
[BRIEFING.COM] The S&P 500 has returned to its session low.

There were no inflation pressures in the latest employment cost index.

Employment costs rose 0.2% in Q2 2015 after a 0.7% increase in the first quarter. The Briefing.com Consensus expected employment costs to increase 0.6%.

That was the smallest increase in employment costs since the index was created in 2001.

Despite what many consider to be a tightening labor market, employers still have the upper hand when it comes to compensation. There seems to be very little competition to attract employees, which would drive up wages and benefits spending.

Year-over-year, employment costs are up only 2.0%, which is in-line with the Fed's inflation target. In other words, real expected compensation growth is flat.
Dow: -33.77… | Nasdaq: 7.90… | S&P: -1.09…
NASDAQ Adv/Dec 1772/978. …NYSE Adv/Dec 2070/982.

01:30PM ET
[BRIEFING.COM] The major U.S. indices remain mixed at this time, in a notably quiet, range bound trading session.

A look inside the Dow Jones Industrial Average shows that Exxon Mobil (XOM 79.50, -3.51), Chevron (CVX 89.27, -3.26) and Apple (AAPL 121.41, -0.96) are under performing. Both Chevron and Exxon Mobil are lower after reports their quarterly results this morning, as well as industry wide weakness in the energy sector with crude oil down 2.5%. Chevron and Exxon each saw their second quarter revenues decline by over 30% y/y. 

Conversely, Pfizer (PFE 36.31, +0.58) is the best-performing Dow component amid sector strength in Health Care, and names in the space outperform the broad market.

Closing out the week and month, the DJIA is up 0.88% and 0.6%, respectively.
Dow: -22.92… | Nasdaq: +11.03… | S&P: -0.45…
NASDAQ Adv/Dec 1791/950. …NYSE Adv/Dec 2070/957.

12:55PM ET
[BRIEFING.COM] The major averages hold modest midday gains with the Nasdaq Composite (+0.4%) trading ahead of the S&P 500 (+0.2%) and the Dow Jones Industrial Average (unch).

Equity indices began the day with modest gains after a disappointing Employment Cost Index for Q2 (+0.2%; Briefing.com consensus 0.6%) was met with a rally in equity futures and Treasuries. The move occurred amid expectations that slower than expected wage growth could cause the Federal Reserve to delay its first rate hike. The 10-yr note traded little changed ahead of the report, but a morning spike has sent the benchmark yield lower by five basis points to 2.20%.

As for equities, the market has made a brief appearance in the red due to relative weakness in the energy sector (-1.8%) after Chevron (CVX 89.35, -3.68) and ExxonMobil (XOM 79.88, -3.13) reported disappointing results.

In addition to pressuring the energy sector, the two names have kept the Dow Jones Industrial Average near its flat line. Furthermore, two other influential sectors-technology (-0.1%) and financials (-0.1%)-also trade behind the broader market.

The top-weighted technology sector has been pressured by a 9.0% slide in LinkedIn (LNKD 206.42, -20.73) after the company reported disappointing results. Also of note, Electronic Arts (EA 71.06, -1.24) has slumped 1.7% after cautious earnings/revenue guidance masked better than expected results.

That being said, the tech-heavy Nasdaq has been able to resist the weakness among tech names, instead rallying alongside biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 384.00, +5.20) is higher by 1.4% after Amgen (AMGN 177.66, +5.97) beat earnings estimates and guided higher. For its part, the broader health care sector has climbed 0.8% with Molina Health (MOH 76.33, +8.33), and Universal Health Systems (UHS 145.37, +3.93) providing added support after both reported above-consensus results.

Economic data included Employment Cost Index, Chicago PMI, and Michigan Sentiment:
  • Employment costs rose 0.2% in Q2 2015 after a 0.7% increase in the first quarter while the Briefing.com consensus expected an increase of 0.6% 
    • That was the smallest increase in employment costs since the index was created in 2001 
  • The Chicago PMI increased to 54.7 in July from 49.4 in June while the Briefing.com consensus expected an increase to 54.7 
    • The reading represented the first increase in three months 
    • There was a large improvement in production as the related index increased to 61.8 in July from 49.8 in June. The production gain came on the heels of strengthening growth in the new orders index, which rose to 58.5 from 51.7 
  • The University of Michigan Consumer Sentiment Index was revised down to 93.1 in the final June reading from 93.3 in the preliminary report while the Briefing.com consensus expected an increase to 94.0 
    • The index is down from 96.1 in June, which was the best reading since January 
    • The Expectations Index was revised down from 85.2 in the preliminary reading to 84.1 while the Current Conditions Index was revised up to 107.2 from 106.0
Dow: +1.40… | Nasdaq: +18.73… | S&P: +3.06…
NASDAQ Adv/Dec 1819/885. …NYSE Adv/Dec 2115/890.

12:25PM ET
[BRIEFING.COM] Equity indices have extended to new highs before returning to their recent levels. The S&P 500 remains higher by 0.2%.

Sector standing has not changed much with countercyclical sectors remaining ahead of the broader market. Meanwhile, the six cyclical sectors continue trading in mixed fashion with the consumer discretionary sector (+0.7%) showing relative strength.

Retail names have kept pace with the sector, evidenced by a 0.7% increase in SPDR S&P Retail ETF (XRT 98.54, +0.64). Elsewhere, homebuilders outperform with iShares Dow Jones US Home Construction ETF (ITB 28.54, +0.32) trading higher by 1.1%.
Dow: +10.02… | Nasdaq: +22.48… | S&P: +4.00…
NASDAQ Adv/Dec 1833/871. …NYSE Adv/Dec 2140/843.

11:55AM ET
[BRIEFING.COM] Not much change in the market with the key indices hovering near their highs. Including today's 0.2% increase, the S&P 500 is on track to end the week higher by 1.6%. Furthermore, the benchmark index is tracking a 2.4% gain for the month.

Although the S&P 500 is likely to register a solid monthly gain, the Nasdaq (+0.4%) has fared even better with today's gain extending its July advance to 3.3%. However, blue chip names have struggled to keep pace, evidenced by the Dow Jones Industrial Average (+0.1%), which is higher by 0.8% for the month.

Elsewhere, Treasuries have rallied and they will finish July near their best levels of the month. The 10-yr yield hovered near 2.42% at the start of the month, but has been pressured to 2.20% over the past four weeks.
Dow: +15.81… | Nasdaq: +21.05… | S&P: +4.85…
NASDAQ Adv/Dec 1822/858. …NYSE Adv/Dec 2162/803.

11:30AM ET
[BRIEFING.COM] Equity indices remain near their session highs as gains among influential sectors like consumer discretionary (+0.6%), industrials (+0.2%), and health care (+0.9%) offset losses in energy (-1.6%), financials (-0.1%), and technology (-0.2%).

Most notably, the health care sector has rallied in reaction to better than expected results from the likes of Amgen (AMGN 178.30, +6.61), Molina Health (MOH 76.85, +8.85), and Universal Health Systems (UHS 146.91, +5.47). Furthermore, Amgen's results have boosted other biotech names, evidenced by a 1.4% spike in iShares Nasdaq Biotechnology ETF (IBB 384.01, +5.21).

Similar to health care, the other three countercyclical sectors trade ahead of the broader market with consumer staples, utilities, and telecom services up between 0.3% and 1.6%.
Dow: +7.92… | Nasdaq: +17.16… | S&P: +3.51…
NASDAQ Adv/Dec 1797/842. …NYSE Adv/Dec 2146/794.

10:55AM ET
[BRIEFING.COM] The major averages have bounced off their early lows, but a few pockets of weakness remain in place. The S&P 500 trades higher by 0.2% with nine sectors in the green.

The rate-sensitive utilities sector (+1.7%) trades well ahead of its peers with today's gain extending its July advance to 6.8%. Elsewhere, health care (+0.8%) and consumer discretionary (+0.6%) also outperform while energy (-2.0%) and technology lag (unch) with the tech sector pressured by chipmakers, evidenced by a 0.4% decline in the PHLX Semiconductor Index.

Interestingly, the Nasdaq (+0.5%) has been able to overcome the weakness among chipmakers thanks to the biotech group. The iShares Nasdaq Biotechnology ETF (IBB 385.30, +6.50) trades up 1.7%.
Dow: +11.02… | Nasdaq: +24.85… | S&P: +4.55…
NASDAQ Adv/Dec 1774/799. …NYSE Adv/Dec 2113/792.

10:30AM ET
[BRIEFING.COM]
  • The dollar have been under heavy pressure this morning, following the release of historically low data with regard to the US Employment Cost Index (ECI)
  • The lowest-ever ECI figure was seen by the market as impeding the Fed's ability to raise interest rates in the near term, and as such the dollar index got crushed.
  • Upon release of the data, the dollar sharply fell to lows for the session, and has extended those losses in the face of additionally released, positive PMI and in-line Mich. Sentiment data
  • The index is now down 1% to 96.61, which has given a strong tailwind to a broad set of commodities (particularly precious metals and WTI)
  • Oil traded lower overnight, extending weakness following commentary from OPEC, that indicated the cartel has no plans to cut near term production
  • After falling to session lows near $47.40/barrel, WTI rallied on the dollar's weakness back to the flat line, but has since moderately retraced back to -1.3% at $47.86/barrel
  • Precious metals are trading solidly higher so far, running up from modest losses prior to the ECI data release.
  • Gold is now +0.6% to $1094.70/oz, silver is +0.7% to $14.80/oz
  • Copper saw a smaller rally on the dollar, holding steady just below flat at -0.2% to $2.37/lb
  • Natural gas has traded slightly negative at -0.3% to $2.76/MMBtu so far this morning, on a relative balance between yesterday's inventory build and revised weather expectations (seeing cooling across the N.E. US). 
Dow: -17.87… | Nasdaq: +11.63… | S&P: +1.44…
NASDAQ Adv/Dec 1546/1013. …NYSE Adv/Dec 1911/953.

10:00AM ET
[BRIEFING.COM] The S&P 500 remains just below its flat line while the Nasdaq Composite (+0.1%) outperforms slightly.

Just released, the University of Michigan Consumer Sentiment report for July was revised down to 93.1 from 93.3 while the Briefing.com consensus expected the reading to improve to 94.0.
Dow: -47.87… | Nasdaq: +4.67… | S&P: -1.15…
NASDAQ Adv/Dec 1440/938. …NYSE Adv/Dec 1866/917.

09:45AM ET
[BRIEFING.COM] The major averages began the trading day just above their flat lines, but the Dow (-0.3%) and S&P 500 (-0.1%) have quickly turned negative due to losses in Chevron (CVX 89.35, -3.68) and ExxonMobil (XOM 79.78, -3.23). The two names have pressured the energy sector (-1.8%) while seven of the remaining nine sectors hold early gains.

Heavily-weighted consumer discretionary (+0.1%), industrials (+0.2%), and health care (+0.5%) are among the early outperformers while financials (-0.3%) and technology (-0.2%) underperform.

Treasuries remain near their recent highs with the 10-yr yield down five basis points at 2.21%.

Just released, the Chicago PMI for July rose to 54.7 from 49.4 while the Briefing.com consensus expected an increase to 50.5.
Dow: -49.10… | Nasdaq: +2.18… | S&P: -1.40…
NASDAQ Adv/Dec 1203/1063. …NYSE Adv/Dec 1757/961.

09:11AM ET
[BRIEFING.COM] S&P futures vs fair value: +4.10. Nasdaq futures vs fair value: +15.10. The stock market is on track for a modestly higher open as S&P 500 futures trade four points above fair value. Index futures held slim pre-market losses not long ago, but spiked off their lows after the Q2 Employment Cost Index (+0.2%; Briefing.com consensus 0.6%) came in below expectations. The lower-than-expected wage growth was viewed as an argument in favor of the Federal Reserve delaying its first rate hike. As a result, Treasuries spiked, sending the 10-yr yield lower by six basis points to 2.20%.

More data will be reported today with the Chicago PMI for July set to be released at 9:45 ET (Briefing.com consensus 50.5) while the final reading of the Michigan Sentiment Index for July will cross the wires at 10:00 ET (expected 94.0).

On the earnings front, investors have received another large batch of results with another heavy week up ahead. The energy sector is likely to face early pressure as Dow components Chevron (CVX 90.88, -2.15) and ExxonMobil (XOM 81.30, -1.71) hold pre-market losses close to 2.2% apiece after both names reported disappointing results. On the flip side, the health care sector should receive early support from Amgen (AMGN 176.29, +4.60) and Molina Healthcare (MOH 70.92, +2.92) after both names surpassed their estimates.

The S&P 500 enters the Friday session up 1.4% for the week.

08:54AM ET
[BRIEFING.COM] S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +9.70. The S&P 500 futures trade two points above fair value.

Most markets in the Asia-Pacific region closed the week on a winning note and with strong gains in the case of smaller markets like Indonesia (+1.9%) and Thailand (+1.8%). China's Shanghai Composite was an exception as it closed out a terrible month with a 1.1% decline.
  • In economic data: 
    • Japan's June Household Spending -3.0% month-over-month (expected -0.5%; prior +2.4%); -2.0% year-over-year (expected +1.7%; prior +4.8%). June National CPI +0.4% year-over-year (expected +0.3%; prior +0.5%). July Tokyo CPI +0.2% year-over-year (expected +0.2%; prior +0.3%). June National Core CPI +0.1% (expected 0.0%; prior +0.1%). July Tokyo Core CPI -0.1% (expected 0.0%; prior +0.1%). June unemployment rate 3.4% (expected 3.3%; prior 3.3%). June Construction Orders +15.4% year-over-year (prior -7.4%). June Housing Starts +16.3% year-over-year (expected +2.9%; prior +5.8%) 
    • Hong Kong's June Retail Sales -0.4% year-over-year (prior -0.1%) 
    • South Korea's June Industrial Production +2.3% month-over-month (expected +0.1%; prior -1.6%); +1.2% year-over-year (expected -1.0%; prior -3.0%). Separately, Retail Sales -3.7% month-over-month (expected -0.1%; prior -0.1%) and August Manufacturing BSI Index 73 (prior 67) 
    • Australia's Q2 PPI +0.3% quarter-over-quarter (expected +0.6%; prior +0.5%); +1.1% year-over-year (prior +0.7%). June Housing Credit +0.6% (prior +0.5%) and June Private Sector Credit +0.4% month-over-month (expected +0.5%; prior +0.5%) 
------
  • Japan's Nikkei increased 0.3% and closed at its highs for the day. The modest gains followed a large batch of economic reports that included some disappointing household spending data for June. The technology (+1.4%) financials (+0.7%), and industrials (+0.4%) sectors provided leadership. NEC Corp (+9.1%), Kansai Electric Power (+8.0%), and FUJIFILM Holdings (+7.9%) topped the list of individual winners. Nicherei Corp (-9.0%), Sumitomo Heavy Industries (-6.4%), and Mitsubishi Motors (-5.0%) paced the decliners. Out of the 225 index members, 137 ended higher, 76 finished lower and 12 were unchanged. For the week, the Nikkei gained 0.2% and for the month it was up 1.7%. 
  • Hong Kong's Hang Seng jumped 0.6%, scoring the bulk of its gains in a closing volley of buying interest that left it near its highs for the session. Galaxy Entertainment (+5.6%), Sands China (+4.3%), and Power Assets Holdings (+3.1%) were the best-performing stocks while Lenovo Group (-2.7%), Li & Fung (-2.6%), and Cathay Pacific Airways (-1.9%) were the worst. Out of the 50 index members, 31 ended higher, 17 finished lower, and 2 were unchanged. For the week, the Hang Seng declined 2.0% and for the month it was down 6.2%. 
  • China's Shanghai Composite declined 1.1%, suffering most of its losses in the final hour of action. Securities regulators are reportedly looking into the influence of automated trading on market activity, according to Reuters. For the month, the Shanghai Composite declined 13.4%. 
Major European indices trade in mixed fashion with Spain's IBEX (-0.8%) trailing the region. The International Monetary Fund will not take part in another Greek bailout unless the package includes an explicit agreement regarding debt relief, according to reports.
  • Economic data was plentiful: 
    • Eurozone July CPI +0.2%, as expected, while core CPI +1.0% (consensus 0.8%; prior 0.8%). Separately, the Unemployment Rate held at 11.1%, as expected 
    • Germany's June Retail Sales -2.3% month-over-month (expected 0.3%; prior 0.4%); +5.1% year-over-year (consensus 4.0%; last -1.0%) 
    • France's June Consumer Spending +0.4% month-over-month (consensus 0.6%; last 0.1%) while June PPI -0.2% month-over-month (last -0.5%) 
    • Italy's June PPI -0.2% month-over-month (prior 0.2%); -2.3% year-over-year (last -1.9%). Separately, July CPI -0.1% month-over-month (consensus 0.0%; prior 0.2%); +0.2% year-over-year (expected 0.3%; last 0.2%). Also of note, June Unemployment Rate rose to 12.7% from 12.5% (expected 12.3%) 
    • Spain's Business Confidence slipped to -0.9 from -0.1 (expected 1.5) 
------
  • UK's FTSE trades higher by 0.2%. Consumer names outperform with ITV, Persimmon, and Barratt Developments up between 1.8% and 2.5% while miners lag. Antofagasta, Anglo American, Glencore, Randgold Resources, and Fresnillo are down between 2.0% and 4.1%. 
  • Germany's DAX trades flat. Basic materials outperform with K+S, HeidelbergCement, Linde, and BASF holding gains between 0.9% and 4.1%. 
  • In France, the CAC trades higher by 0.4% with defense contractors in the lead. Airbus and Safran hold respective gains of 4.3% and 2.0% while exporters also hold gains. Peugeot has climbed 1.6% while Renault trades up 0.2%. 
  • Spain's IBEX trails the region with a loss of 0.8% despite better than expected results from the financial sector. Banco Popular, Caixabank, BBVA, and Santander are down between 1.5% and 4.1%.

08:31AM ET
[BRIEFING.COM] S&P futures vs fair value: +1.10. Nasdaq futures vs fair value: +2.20. The S&P 500 futures trade one point above fair value.

The Q2 Employment Cost Index rose 0.2% while the Briefing.com consensus expected an increase of 0.6%.

07:56AM ET
[BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: -3.30. U.S. equity futures trade near their pre-market lows after slipping to these levels within the past hour. The S&P 500 futures hover two points below fair value after trading inside a seven-point range throughout the night.

Similar to equity futures, Treasuries hold modest losses with the 10-yr yield higher by a basis point at 2.27%.

The Q2 Employment Cost Index will be released at 8:30 ET (Briefing.com consensus 0.6%) while the Chicago PMI for July (consensus 50.5) will be reported at 9:45 ET. The day's data will be topped off with the 10:00 ET release of the final reading of the Michigan Sentiment index for July (consensus 94.0).

In U.S. corporate news of note:
  • Amgen (AMGN 175.00, +3.31): +1.9% after beating estimates and raising its guidance. 
  • ArcelorMittal (MT 8.98, +0.11): +1.2% following better than expected results. 
  • Electronic Arts (EA 70.55, -1.75): -2.4% after cautious earnings/revenue guidance masked better than expected results. 
  • Expedia (EXPE 116.40, +8.79): +8.2% in reaction to results that may not be comparable to estimates. 
  • FireEye (FEYE 45.94, -1.82): -3.8% despite beating estimates and guiding in-line with expectations. 
  • Honda Motor (HMC 33.76, +2.11): +6.7% after beating estimates and guiding below analyst expectations. 
  • LinkedIn (LNKD 215.00, -12.15): -5.4% after the company's disappointing revenue guidance overshadowed better than expected results. 
Reviewing overnight developments:
  • Asian markets ended mostly higher. Japan's Nikkei +0.3%, Hong Kong's Hang Seng +0.6%, and China's Shanghai Composite -1.1% 
    • In economic data: 
      • Japan's June Household Spending -3.0% month-over-month (expected -0.5%; prior +2.4%); -2.0% year-over-year (expected +1.7%; prior +4.8%). June National CPI +0.4% year-over-year (expected +0.3%; prior +0.5%). July Tokyo CPI +0.2% year-over-year (expected +0.2%; prior +0.3%). June National Core CPI +0.1% (expected 0.0%; prior +0.1%). July Tokyo Core CPI -0.1% (expected 0.0%; prior +0.1%). June unemployment rate 3.4% (expected 3.3%; prior 3.3%). June Construction Orders +15.4% year-over-year (prior -7.4%). June Housing Starts +16.3% year-over-year (expected +2.9%; prior +5.8%) 
      • Hong Kong's June Retail Sales -0.4% year-over-year (prior -0.1%) 
      • South Korea's June Industrial Production +2.3% month-over-month (expected +0.1%; prior -1.6%); +1.2% year-over-year (expected -1.0%; prior -3.0%). Separately, Retail Sales -3.7% month-over-month (expected -0.1%; prior -0.1%) and August Manufacturing BSI Index 73 (prior 67) 
      • Australia's Q2 PPI +0.3% quarter-over-quarter (expected +0.6%; prior +0.5%); +1.1% year-over-year (prior +0.7%). June Housing Credit +0.6% (prior +0.5%) and June Private Sector Credit +0.4% month-over-month (expected +0.5%; prior +0.5%) 
    • In news: 
      • Japanese officials attributed the unexpected decline in Household Spending to poor weather in June. For the record, daily air temperatures in Tokyo oscillated around historical averages throughout the month.
  • Major European indices trade in mixed fashion. UK's FTSE -0.1%, France's CAC +0.4%, and Germany's DAX +0.1%. Elsewhere, Italy's MIB +0.4% and Spain's IBEX -0.6% 
    • Economic data was plentiful: 
      • Eurozone July CPI +0.2%, as expected, while core CPI +1.0% (consensus 0.8%; prior 0.8%). Separately, the Unemployment Rate held at 11.1%, as expected 
      • Germany's June Retail Sales -2.3% month-over-month (expected 0.3%; prior 0.4%); +5.1% year-over-year (consensus 4.0%; last -1.0%) 
      • France's June Consumer Spending +0.4% month-over-month (consensus 0.6%; last 0.1%) while June PPI -0.2% month-over-month (last -0.5%) 
      • Italy's June PPI -0.2% month-over-month (prior 0.2%); -2.3% year-over-year (last -1.9%). Separately, July CPI -0.1% month-over-month (consensus 0.0%; prior 0.2%); +0.2% year-over-year (expected 0.3%; last 0.2%). Also of note, June Unemployment Rate rose to 12.7% from 12.5% (expected 12.3%) 
      • Spain's Business Confidence slipped to -0.9 from -0.1 (expected 1.5) 
    • Among news of note: 
      • The International Monetary Fund will not take part in another Greek bailout unless the package includes an explicit agreement regarding debt relief, according to reports.

05:49AM ET
[BRIEFING.COM] S&P futures vs fair value: -1.10. Nasdaq futures vs fair value: -1.10.

05:49AM ET
[BRIEFING.COM] Nikkei...20585.24...+62.40...+0.30%.  Hang Seng...24636.28...+138.30...+0.60%.

05:49AM ET
[BRIEFING.COM] FTSE...6661.16...-7.20...-0.10%.  DAX...11263.43...+6.30...+0.10%.

04:10PM ET
[BRIEFING.COM] The stock market ended the Thursday session on a slightly higher note after rebounding off its opening low. The S&P 500 settled just above its flat line while the Nasdaq Composite (+0.3%) outperformed.

Equity indices faced some early weakness after the overnight session saw renewed selling in China that sent the Shanghai Composite lower by 2.2%. Furthermore, equity futures dropped to new lows ahead of the opening bell after the advance reading of Q2 GDP pointed to an expansion of 2.3%, while the Briefing.com consensus expected a reading of 2.5%. Meanwhile, the first quarter reading was revised up to 0.6% from -0.2%.

This morning's GDP report was met with a rally in the Treasury market as the 10-yr note spiked off its low and continued advancing into the afternoon, dropping its yield three basis points to 2.26%.

Six sectors registered gains with the rate-sensitive utilities sector (+0.7%) holding the lead throughout the day. The sector extended its weekly gain to 2.9%, benefiting from today's decline in yields. Elsewhere among countercyclical groups, telecom services (+0.3%) settled in the green while health care (-0.2%) and consumer staples (-0.3%) registered modest losses.

Notably, the staples sector was pressured by Procter & Gamble (PG 77.44, -3.18) as the Dow component retreated 3.9% despite reporting better than expected results. For its part, the health care sector registered a slim loss after 50 sector components reported earnings. AstraZeneca (AZN 33.74, +0.73) climbed 2.2% in reaction to a bottom-line beat while Cigna (CI 143.90, -1.51) lost 1.0% despite beating earnings expectations. As for biotechnology, the high-beta industry group struggled early, but iShares Nasdaq Biotechnology ETF (IBB 378.96, +1.53) ended higher by 0.4%.

Staying on the high-beta theme, chipmakers helped the technology sector (+0.1%) erase its early loss, which also lifted the Nasdaq Composite. NXP Semiconductor (97.87, +6.07) was a standout performer, surging 6.6% in reaction to a bottom-line beat on cautious guidance. Meanwhile, the broader PHLX Semiconductor Index climbed 0.4%.

Similar to technology, consumer discretionary (+0.3%), financials (+0.1%), and materials (+0.5%) posted gains while other growth-sensitive groups ended in the red. The energy sector (-0.6%) finished at the bottom of the leaderboard after several sector components reported earnings. Marathon Petroleum (MPC 53.94, -1.87) gave up 3.4% in reaction to disappointing results while ConocoPhillips (COP 52.07, -0.83) lost 1.6% despite delivering a bottom-line beat. On the upside, Royal Dutch Shell (RDS.A 57.37, +1.97) jumped 3.6% after reporting better than expected results and announcing plans to cut costs.

Today's participation was a bit below totals registered earlier in the week as 770 million shares changed hands at the NYSE floor.

Economic data reported today included Q2 GDP and Initial Claims:
  • GDP increased 2.3% in the advance estimate of for the second quarter, up from an upwardly revised 0.6% (from -0.2%) increase in Q1 2015 while the Briefing.com consensus expected an increase of 2.5% 
    • Real final sales, which exclude inventories, rose 2.4% in the second quarter, up a 0.2% decline in the first quarter 
    • Almost the entire increase in GDP was the result of a 2.9% increase in real personal consumption spending, which contributed 2.0 percentage points to second quarter growth 
    • Goods spending increased 4.8% after increasing 1.1% in the first quarter. That was the strongest increase in goods spending since a 6.7% gain in Q2 2014 
    • Services spending increased 2.1% for a second consecutive quarter 
  • The weekly initial claims level increased to 267,000 from an unrevised 255,000 while the Briefing.com consensus expected an increase to 272,000 
    • The four-week moving average dropped to 275,000 from 278,000, signaling a labor market that is nearing full employment 
    • The continuing claims level increased to 2.262 mln for the week ending July 18 from an upwardly revised 2.216 mln (from 2.207 mln) for the week ending July 11 while the consensus expected a decrease to 2.200 mln 
Tomorrow, the Q2 Employment Cost Index will be released at 8:30 ET (Briefing.com consensus 0.6%) while the Chicago PMI for July (consensus 50.5) will be reported at 9:45 ET. The day's data will be topped off with the 10:00 ET release of the final reading of the Michigan Sentiment index for July (consensus 94.0).
  • Nasdaq Composite +8.3% YTD 
  • S&P 500 +2.4% YTD 
  • Russell 2000 +2.2% YTD 
  • Dow Jones Industrial Average -0.4% YTD
Dow: -5.41… | Nasdaq: +17.05… | S&P: +0.06…
NASDAQ Adv/Dec 1485/1369. …NYSE Adv/Dec 1572/1508.

Copyright © 2008 Briefing.com, Inc. All rights reserved.
Sponsor Center
Sponsored Links
Buy a Link Now
Content Partners