Japan GDP Revisions Spark AnotherStock Rally


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Over the weekend, Japanese GDP was released and came in better than anticipated. Japan grew 4.1% at a quarterly annualized rate compared to the prior growth of 3.5%. The Nikkei 225 (INDEXNIKKEI:NI225) reacted very favorably to the news, jumping nearly 5%. The Hang Seng (INDEXHANGSENG:HSI) also posted slight gains on the day. Chinese industrial production and retail sales both rose for the month of May

US stocks were relatively flat on the day after Friday's gains. Interest-rate-sensitive stocks were hardest hit with REITs falling nearly 1%. Telecom stocks were the leading sector, rising by almost 1%. Market breadth remained weaker with NYSE decliners outnumbering advancers by nearly 3:2.

Commodities were flat as well, with gold hovering just below $1,400 and crude oil just under $96. US Treasuries continued their downtrend, with the 10-year yield rising 5.4 bps to 2.215%.

Apple Inc ( AAPL ) held its Worldwide Developers Conference today. As was expected, it released the new iOS system which was given the name Mavericks. CEO Tim Cook, as well as other key personnel, introduced many of the new features. The company also released iTunes Radio, Apple's answer to Pandora Media Inc. ( P ). Shares of Pandora fluctuated during the news release, climbing past $15.50 per share. Shares of Apple were positive for most of the day but turned red upon the completion of the conference.

Tomorrow's Financial Outlook

At 7:30 a.m. tomorrow the NFIB Small Business Optimism Index will be released. The consensus level is 92.3. Additionally, the ICSC-Goldman Store Sales will be released at 7:45 a.m.

US Wholesale Trade will be released at 10:00 a.m.; the consensus growth is 0.2% month over month after a rise of 0.4% last month.

The Japanese Producer Price Index will be released tomorrow night. Estimates forecast a rise of 0.6% year over year.

The only earnings release on the calendar is from Ulta Salon, Cosmetics & Fragrance, Inc. ( ULTA ).

Twitter: @Minyanville

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

This article appears in: Investing , Stocks
More Headlines for: AAPL , P , ULTA

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