Asian markets were down in sympathy with US equity futures
overnight. The Japanese
(INDEXNIKKEI:NI225) was the worst performer, falling 1.22%. The
World Bank downgraded its Developing East Asia growth forecast to
7.1% for 2013 from its prior forecast of 7.8% in April. Most
troubling was the downgrade of China's growth rate; the current
year forecasts were lowered to 7.5% from the prior forecast of 8.3%
(INDEXSP:.INX) futures reached an intraday bottom of -18.50 points
near the opening and then shot higher for the rest of the day. It's
worth noting that the trade lower overnight was on abnormally light
volume. Today's total equity volume was at 11.12 billion shares vs.
the 10.58 billion 15-day average. Consumer discretionary,
financial, and material sector stocks were the worst performers
today; all were down more than 1%. Total exchange breadth remained
solidly negative at 4:1 throughout the day.
The negotiations over the debt ceiling continued to dominate
intraday trading. In the daily White House press briefing, Press
Secretary John Carney stated that President Obama backed a proposed
Senate vote for a one-year debt ceiling resolution. If need be, the
president would accept raising the debt ceiling for less than a
year. Over the weekend, House Speaker John Boehner said that he did
not have the support for a bill that raised the debt ceiling
without other concessions.
Over the weekend, news surfaced that
) was being approached by a number of interested parties for a
competitive takeover bid. Potential suitors include
). BlackBerry finished 4% higher today.
Tomorrow's Financial Outlook
Economic data releases are still on hold while the government
remains shut down. August's trade balance will be delayed until a
later date. Other economic data due out includes the NFIB small
business optimism index and the Investor's Business Daily economic
Global market-moving data will be particularly robust tomorrow. On
the calendar are China's services PMI, Switzerland's unemployment
rate, Germany's trade balance, Switzerland's retail sales, and
Germany's factory orders. The data release that has the most
potential to move markets is Germany's factory orders at 5:00 a.m
ET. Economists estimate that orders will rise 1.1% month-over-month
The third-quarter earnings season will get started with
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Media, has a business relationship with BlackBerry.