Share This Story:
|
|
Email
TradeTheNews.com US Market Update: Markets Accentuate the Negative in Yellen Testimony
Tue, 15 Jul 2014 11:07 AM EST
***Economic Data***
- (US) ICSC Chain Store Sales w/e July 11th: w/w +0.1%; y/y: 4.5%
- (PL) Poland Jun CPI M/M: 0.0% v -0.1%e; Y/Y: 0.3% v 0.2%e
- (RU) Russia Jun Industrial Production Y/Y: 0.4% v 2.0%e
- (US) Jun Advance Retail Sales M/M:
0.2% v 0.6%e; Retail Sales Ex Auto M/M: 0.4% v 0.5%e; Retail Sales Ex Auto and
Gas: 0.4% v 0.5%e; Retail Sales Control Group: 0.6% v 0.5%e
- (US) July Empire Manufacturing: 25.60
v 17.00e
- (US) Jun Import Price Index M/M: 0.1% v 0.4%e; Y/Y: 1.2% v 1.1%e
- (US) Redbook Retail Sales w/e July 11th: +4.1% y/y, July MTD: -0.1% m/m
- (PL) Poland Jun YTD Budget Balance Level (PLN): -25.4B v -22.5B prior; Budget
Balance Performance: 53.4% v 47.3% prior
- (BE) Belgium May Trade Balance: € v €63.5M prior
- (CA) Canada Jun Existing Home Sales M/M: 0.8% v 5.9% prior
- (US) May Business Inventories: 0.5% v 0.6%e
- Some decent earnings sent equities
higher this morning before the bell and even helped European indices recovery
from the weak July Eurozone and Germany ZEW surveys. However markets have
dropped into the red after Yellen began testifying. As of writing, the
DJIA is down 0.1%, the S&P500 is down 0.25% and the Nasdaq is down 0.70%
- The headline retail sales number
looked weak but all of the important bits were as strong as or stronger than
anticipated. The shortfall in overall retail sales was due to a 0.3%
decline in reported auto dealer sales. The Empire State manufacturing survey
rose to 25.6 in July, up from 19.3 in June, and widely beat expectations.
- Fed Chair Yellen is testifying before the Senate this morning and more or
less reiterating all her standard policy positions. Surprising nobody, Yellen said rates would be more accommodative if the
economic performance is disappointing and could increase sooner if the labor
market continues to improve faster than expected. The one interesting
note came in the text of the Fed's official Monetary Policy Report to Congress,
in which Yellen warned that small cap biotech and social media valuations are a
bit high relative to historical norms. Shares of FB, TWTR and a few other
momentum names came off a bit on the remarks.
- After holding pretty steady overnight, EUR/USD dropped from the lower end of 1.3600 to test below 1.3565 after
Yellen started talking. USD/JPY dropped to 101.44 then bounced to 101.75
on Yellen's testimony. Note that crude continued its slow-motion collapse, with
WTI dropping below $100 for the first time since mid May.
- Both JPMorgan and Goldman Sachs beat earnings and revenue expectations in
second-quarter results. However, there were problems with numbers from JPMorgan's, where profits fell 8% y/y and
revenue declined 3% y/y. Fixed income and equity markets revenue fell
15% y/y, although executives have been warning about these trends for some
time. Goldman's report looked much
better, with profits up 5% y/y, as a 15% y/y gain in investment banking revenue
offset a 10% decline in FICC revenues. Shares of JPM are up 4% this
morning, while GS rose 1.5% in the premarket but has been losing ground in
midmorning trade.
- Last night, refiner Valero offered
second-quarter guidance that fell well short of consensus expectations, driving
shares of VLO and the other independent refiners into the red. Trading
in the refiners has been choppy this morning, but shares are off their lows.
Valero blamed the hit to earnings on charges related to accounting issues, and
noted that refining income and volumes would be higher y/y.
***Looking Ahead**
- BRICS Summit begins 2-day meeting in
Fortaleza , Brazil
- 11:30 (IL) Israel Jun CPI M/M: 0.2%e v 0.1% prior; Y/Y: 0.5%e v 1.0% prior
- 14:00 (US) Fed Discount Rate Minutes
- 15:00 (AR) Argentina Jun Wholesale Price Index M/M: No est v 1.8% prior; Y/Y:
No est v 27.4% prior
- 16:30 (US) Weekly API Oil Inventories
-18:00 (CL) Chile Central Bank Interest Rate Decision: Expected to cut
Overnight Rate Target by 25bps to 3.75%
- 19:00 (KR) South Korea Jun Unemployment Rate: No est v 3.7% prior
- 22:00 (CN) China Jun YTD Urban Fixed
Assets Y/Y: 17.2%e v 17.2% prior
- 22:00 (CN) China Jun Retail
Sales Y/Y: 12.5%e v 12.5% prior; Retail Sales YTD Y/Y: 12.2%e v 12.1% prior
- 22:00 (CN) China Jun
Industrial Production Y/Y: 9.0%e v 8.8% prior; Industrial Production YTD Y/Y:
8.8%e v 8.7% prior
- 22:00 (CN) China Q2 GDP Q/Q:
1.8%e v 1.4% prior; Y/Y: 7.4%e v 7.4% prior; GDP YTD Y/Y: 7.4%e v 7.4% prior
Forex Trading News
Forex Research
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
here.
Forex News
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."
We are starting an affiliate program to market some of our products.