Early Strength Wanes in US Equities, Commodities Remain Strong


Overnight, Chinese economic data continued to improve, building on yesterday's favorable trade data. Industrial production and fixed asset investments increased their rate of expansion while retail sales and new loan creation slowed some. Basic materials and their producers showed solid gains for the day. The Chinese Hang Seng Index (INDEXHANGSENG:HSI) was up 0.7%

The S&P 500 (INDEXSP:.INX) closed the day down 0.3% following positive action in the opening half hour. June wholesale inventories fell more than expected at -0.2% vs. the 0.4% consensus.The drop in inventories indicates that the 1.7% annualized GDP growth in the 2Q will be revised down at the next estimate later this month.

Silver continued higher today, closing up .6%. The 10-year yield fell 1 bps to 2.58%. Crude climbed 2.6% to $106.1 per barrel following a statement from the EIA saying that China would surpass the US in the fall as the largest net importer of oil in the world.

Priceline.com Inc ( PCLN ) rose 5% to $980 after releasing upbeat earnings. The stock fell just short of $1,000, topping at $994.98 per share.

Shares of BlackBerry Ltd ( BBRY ) surged 7% following rumors that the company may go private. The stock is down 40% in the last three months after its disappointing quarterly report in June. Lions Gate Entertainment Corp. ( USA ) (NYSE:LFG) reported earnings that topped analyst estimates after the close yesterday. Shares rejected the good news, closing down 0.4%.

Monday's Financial Outlook

Sysco Corporation ( SYY ) and WuXi PharmaTech (Cayman) Inc. (ADR) ( WX ) are both expected to release earningson Monday . The US monthly budget statement will be releasedMonday afternoon. Economists expect the US Treasury to record a deficit of $94.5 billion in the month of July.

Japanese GDP will be released over the weekend.

Disclosure: Minyanville Studios, a division of Minyanville Media, has a business relationship with BlackBerry.

Twitter: @Minyanville

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: BBRY , PCLN , SYY , USA , WX



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