There is a pronounced risk-off theme across European and US markets, with bond yields dropping and equities in the red. Notable exceptions include the Nasdaq, and hitting new all-time intraday highs on Google's big gains, and the Dow Transports. The DJIA is off 0.36% and the S&P500 is down 0.11%.
The University of Michigan's consumer sentiment index gave back more of its June gain than anticipated, dropping to 93.3 from 96 prior, leaving it slightly below its Q2 average. The pullback was evenly spread over the current conditions and expectations indexes. Housing starts in June rose 9.8% to a 1.17 million annualized rate from a revised 1.07 million in May that was stronger than previously estimated. Multifamily starts jumped 29%. The June CPI held no surprises and was largely flat.
The Dow Transports really outperforming this morning, at their highs led by KSU, JBHT and the airlines, just shy of the 50 MA, which hasn't been topped since early May. KSU's earnings merely met expectations while JB Hunt missed on the top and bottom lines, however the major US airlines are up a few percent each, and KSU is up 7% on a very positive outlook on the coming months.
Google and Hertz are seeing record-breaking gains this morning after big corporate updates. One major factor holding back Google over recent years has been the perception that costs were not under control, and yesterday new CFO Ruth Porat pledged to keep a tight leash on spending. Google's revenue rose 11% y/y and earnings comfortably topped expectations. Shares of GOOGL are up more than 15% this morning. Hertz put a bow an era of weak financial oversight after completing its financial restatements due to lax oversight of former CEO Mark Frissora. The company offered good FY guidance and said it now expects to reach annualized cost savings of $300 million by year-end, $100 million more than its goal. HTZ was up 18% in the first minutes of cash trading after a monster post-market run, however shares have come off to +12% on profit taking.
***Looking Ahead***
- 13:00 (US) Weekly Baker Hughes Rig Count
- (UR) Ukraine Jun Industrial Production M/M: N est v -0.2% prior; Y/Y: -20.1%e v -20.7% prior
***Economic data***
- (PT) Portugal Jun PPI M/M: -0.1% v +0.7% prior; Y/Y: -1.8% v -1.7% prior
- (BR) Brazil May Economic Activity Index (Monthly GDP): M/M: 0.0% v 0.3%e; Y/Y: -4.8% v -4.0%e
- (PL) Poland Jun Sold Industrial Output M/M: 4.7% v 4.0%e; Y/Y: 7.6% v 7.0%e; Construction Output Y/Y: -2.5% v +3.6%e
- (PL) Poland Jun PPI M/M: 0.4% v 0.2%e; Y/Y: -1.6% v -1.9%e
- (US) Jun CPI M/M: 0.3% v 0.3%e; Y/Y: 0.1% v 0.1%e
- (US) Jun CPI Ex Food and Energy M/M: 0.2% v 0.2%e; Y/Y: 1.8% v 1.8%e
- (US) Jun CPI Index NSA: 138.638 v 238.632e; CPI Core Index SA: 242.193 v 242.098e
- (US) Jun Housing Starts: 1.174M v 1.106Me; Building Permits: 1.343M v 1.150Me
- (CA) Canada Jun CPI M/M: 0.2% v 0.2%e; Y/Y: 1.0% v 1.0%e; Consumer Price Index: 127.2 v 127.1e
- (CA) Canada Jun CPI Core M/M: 0.0% v -0.1%e; Y/Y: 2.3% v 2.2%e
- (CA) Canada Jun CPI (Seasonally adj) M/M: 0.4% v 0.4% prior; CPI Core (Seasoanlly Adj) M/M: 0.3% v 0.2% prior
- (US) Jun Real Avg Weekly Earnings Y/Y: 1.8% v 2.2% prior
- (RU) Russia Jun Real Retail Sales M/M: 0.4% v 0.9%e; Y/Y: -9.4% v -8.9%e
- (RU) Russia Jun Unemployment Rate: 5.4% v 5.7%e
- (US) July Preliminary University of Michigan Confidence: 93.3 v 96.0e
[I]Contributed by Trade The News[/I]
Sections
Categories