US markets traded flat into the Fed announcement, but began to
rapidly sell off during Ben Bernanke's press conference. While the
Fed did not announce any change in monetary policy, its updated
economic projections may be signaling rate hikes and/or tapering of
QE activity . The
(INDEXSP:.INX) finished the day down 1%, while the 10-year US
Treasury yield jumped 13 bps to 2.31% after the announcement. This
is the first time the 10-year has pushed through 2.3% since March
(INDEXNIKKEI:NI225) jumped 1.83% on the day. The Japanese index has
bounced nearly 6.5% in the last four secessions since entering bear
The EIA petroleum report was released this morning, and crude
inventories rose by 313,000 last week. Crude finished slightly
lower on the day.
Tesla Motors Inc
) announced that it will be recalling 800 Model S cars. After
trading down early in the day, the electric car manufacturer
finished the day up more than 1%. In tech,
) was downgraded to underperform by Bernstein Research today;
shares traded down 5% on the news. The company is due to release
earnings onJuly 28 .
Tomorrow's Financial Outlook
The European Union PMI composite flash will be releasedtomorrow at
4:00 a.m. EDT . Germany and France will both be releasing their
flash reports at3:30 a.m. EDT .
US weekly jobless claims will be released at8:30 a.m. EDT .
Initial claims are expected to come in at 340,000.
US existing home sales will be released at10:00 a.m. EDT . Sales
are expected to come in at 5 million, slight better than last
month. The Philadelphia Fed survey will also be released at10:00
a.m. EDT . The index is expected to report a reading of -1.0.
) will be releasing earningstomorrow . Analysts expect earnings per
share of $0.85.