U.S. equity markets are up today, buoyed by strong domestic
corporate earnings and some bargain buying after recent strong sell
offs.
The market found little to inspire it in mixed economic
reports.
Initial claims surged 36,000 to 386,000, down from a prior level
of 350,000 and topping consensus estimates of 365,000 (range
360,000 to 375,000). But timing and seasonal adjustments must also
be considered when looking at it. In fact, the four-week moving
average actually declined, moving to 375,500 from 376,500. This
metric matters because when jobless claims decrease, it suggests an
improving labor market, and stronger labor markets mean greater
household spending power and a stronger economy overall. In this
case, the decrease in the four-week moving average is
encouraging.
The Bloomberg Consumer Comfort Index, which provides a measure
of consumer attitudes and has significant long-term correlations
with several economic indicators, was not so inspired. The level
remained steady from last week, at minus 37.5, as soft gasoline
prices no longer offset the labor market. The Bloomberg Index of
the State of the Economy actually fell to its lowest since
February, at minus 72.8, which represents a strong decrease from
the previous period's minus 71.7. But the measure of whether
consumers think it is a good time to buy increased, moving to minus
41.5 from minus 42.4 the prior week.
Sales of existing homes, which is a good gauge for housing
demand as well as economic momentum, declined sharply, down 5.4% in
June to an annual rate of 4.37 million, marking the lowest level of
the year. The previous level was 4.55 million and consensus
estimates had put the figure at 4.65 million (range 4.60 million to
4.73 million).
The Philly Fed Report also came out today. It gives detailed
information on a weekly basis about the manufacturing sector, how
busy it is and where things are headed. Given the importance of the
manufacturing sector to the economy as a whole, this report
provides a strong look at market behavior. Today's report showed
that general business conditions are declining sharply along with
new orders, which points to a general downturn.
Natural gas in storage rose less than expected, increasing by 28
billion cubic feet (bcf) this week to 31,63 bcf. An injection of 30
bcf was predicted. This is important because the volume of natural
gas in storage is one factor that helps determine prices for the
commodity.
Crude oil was up to $91.88 per barrel. Natural gas was up to
$2.97 per 1 million BTU. Gold was up $16.70 to $1,587.50 an ounce,
while silver was up 0.24 to $27.34 an ounce. Copper was up 0.05 to
$3.53 per pound.
Among energy ETFs, the United States Oil Fund is up 3% with the
United States Natural Gas fund up nearly 1%. Amongst precious-metal
funds, the Market Vectors Gold Miners ETF was up more than 1% while
SPDR Gold Shares were up around 0.6%. The iShares Silver Trust was
up aboutthe same.
Here's where the markets stand at mid-day:
US MARKETS
NYSE Composite Index up 19.98 (+0.26%) to 7,851.47
Dow Jones Industrial Index up 22.63 (+0.18%) to 12,931.33
S&P 500 up 3.72 (+0.27%) to 1,375.88
Nasdaq Composite Index up 21.85 (+0.74%) to 2,964.76 Â
GLOBAL SENTIMENT
FTSE 100 is up 22.79 (+0.40%) to 5,708.56
DAX is up 68.36 (+1.02%) to 6,752.78
CAC 40 is up 24.70 (+0.76%) to 3,260.10
Nikkei 225 up 68.81 (+0.79%) to 8,795.55
Hang Seng Index up 319.17 (+1.66%) to 19,559.05
Shanghai China Composite Index up 15.74 (+0.73%) to 2,184.84
NYSE SECTOR INDICES
NYSE Energy Sector Index up 14.06 (+0.12%) to 12,116.90
NYSE Financial Sector Index down 4.69 (-0.11%) to 4,440.75
NYSE Healthcare Sector Index down 4.25 (-0.06%) to 7,605.44
UPSIDE MOVERS
PSDV (+34.3%) Announced that the U.S. FDA has cleared its
Investigational New Drug (
IND
) application to treat posterior uveitis (inflammation of the eye)
with PSDV's injectable sustained-release micro-insert. PSDV is now
permitted to commence two Phase 3 trials to treat patients with
posterior uveitis.
EDU (+28%) Company responded to allegations raised in a report
dated July 18, 2012 issued by Muddy Waters. New Oriental stated
that it believes the Muddy Waters report contains numerous errors
of facts, misleading speculations and malicious interpretations of
events.
ROVI (+14% from near year lows) Reached a licensing deal with
Panasonic (
PC
). The license covers the use of Rovi's Divx Plus Streaming
technology in Panasonic's HDTV and Blu-ray processors. Divx Plus
aims to deliver a Blu-ray-like feature set to online streaming.
DOWNSIDE MOVERS
IRG (-21.7%, hit year lows) Bronstein, Gewirtz & Grossman,
LLC announced it is investigating potential claims on behalf of IRG
shareholders, alleging that certain statements issued by IRG
regarding the company's business, operations and financial
condition were false and misleading.
DCIX (-13.6%) Priced 8.1 million shares at $6.25 each in a
public offering. The offering is expected to close on July 24.
MITK (-11.3%) Filed a motion to amend its complaint to include
the claims of defamation and violation of the Lanham Act for unfair
business practices in its lawsuit against United Services
Automobile Association (USAA) in the U.S. District Court for the
District of Delaware.