Share This Story
Forex Blog - US Market Update
Today 10:58am EST/02:58pm GMTUS Market Update
Dow +87 S&P +10.5 NASDAQ +16
- Follow-through strength from Europe and Asia bid up US futures before the bell while the ISM data helped sustain momentum after the open. At 10:30amET the S&P500 broke above the 1,000 mark at for the first time since November 5th, 2008. The July ISM Manufacturing index was better than expected, while the prices paid and new orders sub indices were both above 55, indicating growth. This is the seventh consecutive gain in the index, although the headline number still remains below the 50 level. The ISM's Ore said that it would be difficult to convince manufacturers the US is on the brink of recovery, "but the data suggests that we will see growth in the third quarter if the trends continue." Yesterday former Fed Chairman Alan Greenspan told ABC's George Stephanopoulos he is "short term optomistic with many caveats," in particular housing and hopes the Fed can hold off on rate hikes for "a couple of years" (but does not believe they have that much time). Front-month NYMEX crude is finding traction above $70 once again while copper has made another high going back to October. Treasury prices are under pressure pushing the 10-year yield back above 3.65% ahead of this afternoon's quarterly refunding announcement.
- In earnings news, MGM's loss in the second quarter was much higher than expected, thanks to impairment charges and big costs for retiring debt. Investors are looking past the results, with shares of MGM spiking up as much as +7% just after the bell and around +3% mid morning. Conglomerate Lowes Corp missed earnings estimates, driven primarily by impairment charges Loews had to take on investments losses at insurance subsidiary CNA Financial. CNA's quarterly earnings exceeded analysts estimates. Shares of CAN are up 10%, while L is up 4% and headed in the right direction. Tyson Foods beat earnings and revenue targets thanks to cost cutting and lower input costs. Shares of TSN were up 4% in the premarket, but have quickly sunk to around -4% early trading. Second-tier energy names Marathon Oil and FirstEnergy are up in the low single digits after offering solid second quarter results and exceeding analysts targets.
- In currencies, the greenback hit fresh 2009 lows against European and commodity-related pairs, with EUR/USD testing the 1.4400 level, USD/CHF probing the 1.0600 and GBP/USD above the 1.69 handle. Continued strength in global equity markets highlighted the ever growing appetite for risk, which is providing a negative backdrop for the USD. Pre-Lehman collapse PMI readings throughout most of Europe have driven stock markets higher this morning. Sterling led the pack as the UK PMI manufacturing moved above the pivotal 50 level for the first time since April 2008. In the US, the ISM survey is only boosting risk appetite.
- Note that the overall tone for the USD is nearing some key chart momentum points, with the 1.06 area being eyed in USD/CHF. The SNB will report its July CPI data in tomorrow's session and intervention chatter could get louder if the pairs is below 1.06 for any prolonged period of time. In addition, the RBA has a rate decision on Tuesday, and could step up its rhetoric over strength of AUD.
Legal disclaimer and risk disclosure
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."