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%
(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
) rose 5% to $980 after releasing upbeat earnings. The stock fell
just short of $1,000, topping at $994.98 per share.
) 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. (
(NYSE:LFG) reported earnings that topped analyst estimates after
the close yesterday. Shares rejected the good news, closing down
Monday's Financial Outlook
WuXi PharmaTech (Cayman) Inc. (ADR)
) 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.