Standard equipment inside computers, printers and millions of other electronic devices can be hacked using sound waves, per a team of security researchers at Red Balloon Security.

By taking control of the physical prongs on general-purpose input/output circuits, the attack program vibrates them at a frequency of the researchers’ choosing - some audible some not. An AM radio antenna located just a short distance away can pick up the vibrations. ...

US equities have snapped a three-day losing streak today, with strong gains despite the soft ADP jobs report. The 10-year UST yield is giving up more than five bps to trading around 2.275%, the DJIA is up 0.55%, the S&P500 is up 0.77% and the Nasdaq is gaining 1.36%.

The ADP private payrolls report came in at +185K for July, missing expectations. Meanwhile, the consensus forecast for the nonfarm payrolls report due on Friday is around +223K. The July ISM non-manufacturing index looked very good, rising to 60.3, its highest level since December 2004, from 56.0 in June. Both the new orders and employment components rose to their highest points since August 2005. ISM officials said the majority of the respondents continue to have a positive outlook on business and the overall economy. ...

According to American pharmaceutical company Aprecia, the US Food and Drug Administration (FDA) approved its drug Spritam, made by 3D printing for the first time.

Aprecia's “ZipDose” technology works by printing together layers of powder with a fluid to make a “porous, water-soluble matrix that rapidly disintegrates with a sip of liquid.” The pharmaceutical company claims that even the strongest doses of the drug could be taken with just a sip of water. ...

The rollercoaster Shanghai Composite gained 3.7% earlier today, although there has not been much in the way of follow-through to European or US equity trading. Note that all three leading US equity indices are in the red even as the 10-year UST sells off a bit, with the yield up 2.3 bps to trade around 2.171%. The DJIA is down 0.11%, the S&P500 is down 0.03% and the Nasdaq is off 0.20%.

The gains in Shanghai are helping certain commodities. Crude prices are bouncing higher, with WTI up nearly 1.8% to trading around $46 and Brent up 1.3%, back above the psychologically important $50 threshold. After touching a six-month low on the LME yesterday, copper is also moving higher. ...

For several auto makers, sales during July were the strongest they have seen in years. Continued demand for SUVs and trucks are driving growth and add to the bottom line of top auto manufacturers. Also fueling the new car market is a stronger labor market, historically low-interest rates on auto loans and special deals from auto makers.

Kelley Blue Book reported that during July, transaction prices of new light vehicles rose 2.6% to $33,453, from same period during 2014. ...

The S&P500 is back to unchanged this morning although the DJIA remains in negative territory after some uninspiring US economic data. The 10-year UST yield is down another two basis points, trading around 2.160%. The DJIA is down 0.33%, the S&P500 is flat and the Nasdaq is up 0.10%.

Personal spending and core PCE growth held steady at low levels in July, although the y/y figure was a hair higher. The July ISM manufacturing index fell to 52.7 from 53.5 the month before, however the new orders component rose to 56.5 from 56.0 in June, marking the highest reading since December. ...

***Notes/Observations***
- China July Caixin manufacturing activity contracts for a 5th straight month and hitting a two-year low with less output and fewer new orders; commodity prices remain soft
- No relief for emerging market or commodity-related FX
- Athens Stock Exchange reopens after a 5-week close brought on by the Greek debt crisis; opens 23% lower and on course for worst percentage loss on record (**Note: There are with restrictions for Greek traders)
- Major European Manufacturing PMI data revised higher in final readings ...

While consumers across the country are enjoying lower prices at the gas pump, the joy of seeing the drop in crude - not so much for the largest and richest oil company in the USA.

Exxon Mobil Corporation (XOM - NYSE) reported a 52% drop in profit for Q2, as higher profit from its refining and chemical operations couldn't offset plunging earnings in its exploration and production business amid lower crude prices. ...

US equities are seeing more modest gains this morning despite some concerns about the Q2 employment cost index report and a move lower in sovereign yields. The 10-year UST has come in six basis points to trade below 2.2% for the first time since early July. As of writing, the DJIA is up 0.07%, the S&P500 is up 0.23% and the Nasdaq is up 0.39%.

The Q2 employment cost index report out this morning indicated that labor costs decelerated sharply in the quarter (+0.2% v +0.6%e), reversing Q1's +0.7% figure and delivering the lowest rate of growth in 30 years. ...

***Notes/Observations***
- IMF's staff recommendation making a Greek debt restructuring pre-conditional for the IMF financial support; Grexit risk stays firmly in place
- German Jun retail sales data mixed (weaker q/q, better Y/Y readings)
- Italy Jun Unemployment rises to 12.7% with youth unemployment hitting a fresh record high at 44.2%
- Euro Zone July CPI core reading hits highest level since April 2014 ...

According to a quarterly report to Congress from a special inspector general for Troubled Asset Relief Programs (TARP) Home Affordable Modification Program (HAMP), mortgage servicers reject 72% of struggling home owners reaching out for help to create more affordable monthly mortgage payments to keep their homes.

Christy Romero, special inspector general for TARP said, “There is a massive lost opportunity for an emergency program designed to help homeowners through the crisis if only 20% to 30% of families seeking help from HAMP actually get into HAMP.” ...

Neither yesterday's FOMC statement nor today's initial look at second quarter US GDP have changed the impression that the Fed is on track to raise interest rates as soon as September. Global equity trading has been choppy, with the Shanghai Composite down 2% earlier today, European markets closing with modest gains after some decent Q2 GDP figures, and US markets in the red. As of writing, the DJIA is down 0.12%, the S&P500 is down 0.21% and the Nasdaq is flat.

The first reading of Q2 GDP was just fine, with the headline figure of +2.3% a hair below expectations, but much better than the revised final Q1 figure of +0.6% (up sharply from the -0.2% final figure reported late last month). Personal consumption beat expectations at +2.9%, while the export figure grew to +5.3% from -5.9% in the final Q1 report. ...

Researchers at security firm FireEye, Inc. (FEYE - Nasdaq) reported on Wednesday that, Russian government-backed hackers used the unusual tandem as a means of communicating with previously infected U.S. government and defense industry computers.

According to FireEye, hackers penetrated high-profile computers this year, used a method combining Twitter, Inc. (TWTR - NYSE) with data hidden in seemingly benign photographs. ...

Trading volumes are above average this morning as US equities see modest gains. Market participants will be scrutinizing this afternoon's Fed statement for any scrap of information that could indicate the FOMC's thinking on the timing of future rate hikes. The 10-year UST yield is up nearly four basis points, around 2.286%. The DJIA is up 0.55%, the S&P500 is up 0.40% and the Nasdaq is up 0.20%.

After dropping below $47 yesterday morning, WTI crude is climbing higher and is poised to retake $49 in the wake of weekly inventory reports. Both the API and DoE data returned to showing inventory drawdowns after surprise builds in the prior week's reports. ...

Wealth-X, global authority on wealth intelligence, released its report on the 10 wealthiest couples on planet Earth.

The #1 wealthiest couple on planet Earth is Bill and Melinda Gates with a combined net worth of $85.7 billion.
In 1975, Bill co-founded of computer software company Microsoft Corporation (MSFT-Nasdaq). Bill married Melinda, a Microsoft employee, in 1994 and the couple have two daughters and one son. The Bill & Melinda Gates Foundation, created in 2000, donates primarily to agricultural development, educational, health and other social causes worldwide. In 2010, the Gates joined billionaire investor Warren Buffett to form the Giving Pledge - a campaign to spur the world’s wealthiest individuals to commit the majority of their wealth to philanthropy. ...

More Chinese government support stabilized the Shanghai Composite in trading earlier today, but before Beijing stepped in it was looking like another very ugly day. European equities closed with solid gains and US indices are being lifted higher by a handful of very strong earnings reports. As of writing, the DJIA is up 0.58%, the S&P500 is up 0.55% and the Nasdaq is gaining 0.35%.

Consumer confidence was rattled by the Chinese slump and the Greek crisis in July, as seen in the confidence reading out this morning. July consumer confidence fell to the lowest level since last September. Current conditions was still looking relatively healthy at 107.4, but the outlook for next six months dropped sharply to 79.9 this month from 92.8 in June. ...

Dow Jones Industrial Average was lower by triple digits throughout most of the trading session Monday after Chinese shares crumbled by 8.5% in the biggest one-day drop since 2007. The drop on the Chinese market comes on the heals of an unprecedented government rescue plan to prop up valuations ran out of steam, throwing Beijing's efforts to stave off a deeper crash into doubt. U.S. stocks fell across the board today, with 2,247 companies falling, leaving only 77 gainers.

Beijing unleashed a barrage of support measures to arrest a slump that started in mid-June however, the relative calm on their market was shattered. Sources say that the China Securities Financial Corporation (CSFC) returned ahead of schedule, some of the loans it took to stabilize the stock market. ...

The Shanghai Composite returned to meltdown territory after a few weeks of calm, down more than 8% on the session, the largest one-day drop since 2007. Analysts pointed out that despite today's drop, Shanghai is still up 15% YTD. On the Continent, the CAC and DAX are down more than 2.2% a piece. US futures were weak in the premarket, although the three main indices regained some ground in the first two hours of trading. The 10-year UST is down 3.4 basis points around 2.228%. The DJIA is down 0.8%, the S&P500 is off 0.4% and the Nasdaq is down 0.8%.

The volatile durable goods data was better than expected in June. The non-defense capital goods orders (ex aircraft) - key for gauging business investment - rose 0.9% in June, following two straight months of decline. Shipments of capital goods - used for GDP calculations- slipped 0.1% after a 0.3% fall in May. Transportation orders were buoyed by a 66% surge in aircraft orders in June, which reversed May's 32% drop. ...

***Notes/Observations***
- Weakening risk appetite environment continues
- Shanghai Composite registers its worst daily performance since Feb 2007; closed lower by 8.5% at 3,725 over rising concerns about China's growth outlook (Manufacturing PMI on Friday and Jun Corporate Profits overnight)
- Falling commodity prices have added to global growth concerns, contributing to falling risk appetite
- Overall disappointing 2Q earnings season thus far
- Germany July IFO registers its first improvement in three months
- Fed is unlikely to tighten its language significantly at its decision mid-week ...

U.S. Commerce Department on Friday reported that during June, new U.S. single-family home sales declined 6.8% to a seasonally adjusted annual rate of 482,000 units, striking the lowest level since November 2014.

New U.S. single-family home sales were up 18.1% in June, compared to June 2014.

In the Northeast, new home sales increased 28% in June after soaring 78.6% in May. ...

The DJIA is seeing is fourth consecutive session of declines, while the S&P500 and Nasdaq are slumping for a second session. Weak PMI data out of Europe has compounded worries about the global economy after the very poor flash Markit China PMI reading. The 10-year yield is pretty much flat on the day, steady around 2.27%, while European yields are broadly lower. As of writing, the DJIA is down 0.37%, the S&P500 is off 0.44% and the Nasdaq is down 0.06%.

Crude oil has plunged into a bear market this week with prices stuck around $48 as the week draws to a close, more than 20% off the highs seen in early May. The front-month WTI contract fell more than 1% yesterday and contined falling today. Earlier in the session, WTI tested below $48, but has moved back up to around $48.30 as of writing. ...

***Notes/Observations***
- China July Preliminary Manufacturing PMI at 15-Month low (48.2 v 49.7e); commodities rout continued
- Formal negotiations for 3rd Greek bailout program begins
- Major European Preliminary PMI Manufacturing miss expectations with France moving back into contraction


*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
**Equities**
Indices [Stoxx50 +0.4%, FTSE 100 +0.4% at 6,679, DAX +0.1% at 11,527, CAC-40 +0.6% at 5,115, IBEX-35 flat at 11,447, FTSE MIB +0.6% at 23,775, SMI +0.2% at 9,402, Athens Stock Exchange closed, S&P 500 Futures +0.2% at 2,103] ...

General Motors Company (GM-NYSE) shares were higher by 4% into mid-afternoon trading Thursday after reporting adjusted net income that more than doubled in Q2 2015, driven by North American truck sales and continued strength in China.

During Q2, GM earned $1.29 a share in, stripping out one-time charges, up from 58 cents a share. Despite declining global vehicle deliveries and a 3.5 percent decline in worldwide revenue, profits rose. GM net income rose to $1.1 billion or 67 cents a share, from $200 million or 11 cents a share during same period in 2014. ...

US equity indices are looking heavy for a third consecutive session. A few big earnings disappointments are not helping, but the overall tone out of earnings is hard negative. The dollar continues to soften, with EUR/USD testing above 1.1000. The DJIA is down 0.34%, the S&P500 is off 0.15% and the Nasdaq is flat.

Weekly initial jobless claims fell sharply to their lowest level since 1973 and widely undershot expectations. Analysts said not to read too much into the claims numbers, given they are strongly distorted by summer factory retooling shutdowns and school vacations, rather than any fundamental shifts in labor market conditions. ...