Overnight, Asian markets closed lower following outsized gains
in the US dollar last Friday. The
(INDEXNIKKEI:NI225) fell 1.4%, and the Chinese Shanghai Composite
fell 2.44%. European markets began the day higher and closed near
their highs of the day. After the European close, EU finance
ministers were said to have approved a 3 billion euro tranche of
aid to Greece to ensure that there would be no cash shortfall for
the remainder of the quarter. Additionally, the finance ministers
were said to move up aid payments to the third quarter due to a
large number of bond redemptions in August.
US markets open higher and moved little for the rest of the day.
(INDEXNASDAQ:.IXIC) lost 0.6% of its gains and closed around flat
for the day. The leading
(INDEXSP:.INX) sectors on the day were utilities, consumer staples,
and financials with tech and telecom in the red. Lagging tech
stocks were no doubt pushed down by the 1% decline in
). The largest movement was in US Treasuries, with the 10-year
yield dropping 10 basis points to 2.64%. This follows a
24-basis-point rise on Friday after the better-than-consensus
The only economic datapoint for the day was consumer credit, which
expanded by an adjusted rate of $19.05 billion in May. Consumer
financed borrowing showed strong gains in non-revolving and
revolving subsets, but it was little changed on an non-adjusted
basis for the last year.
) founder Michael Dell and private equity firm Silver Lake was
given the green light by corporate governance consulting firm
Institutional Shareholder Services for its $24.4 billion leveraged
buyout. ISS commented negatively on Carl Icahn's proposed buyout
due to its leveraged nature. Dell shares closed at $13.42, up 3%
for today and slightly below the $13.65 offer price. Dell
shareholders will vote on the proposal July 18.
) kicked off earnings today with a better-than-expected report.
Earnings per share rose $0.07 versus $0.06 estimates and revenues
rose $5.96 billion versus $5.79 billion estimates. The company
reaffirmed its global aluminum demand forecast at 7% for the year.
Shares of Alcoa were up 2% from its closing price to $8.05 in
Tomorrow's Financial Outlook
Tomorrow's economic data will include the small business optimism
index via NFIB and same-store sales indexes from ICSC/Goldman and
Redbook. The small business optimism indexes should rise given the
higher wages found in last Friday's employment report. Same-store
sales have trended down of late, coincident with falling
consumption. Lastly, tomorrow will be the first Treasury auction of
three this week.
It will be a busy day across the globe for economic data releases.
The UK will release manufacturing and industrial production from
May and it will also release its trade balance from May. On a
month-to-month basis, the production figures are expected to gain
slightly. Lastly, the NIESR institute will release its estimate of
England's GDP for June. Other economic data includes the consumer
inflation index from China and Japanese production orders.
Wolverine World Wide
) will be the only notable earnings report tomorrow.