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Barchart Moring Call 8/1

|Includes: ADP, AGN, AMT, Comcast Corporation (CMCSA), D, DVN, EPD, GGP, MA, MET, MRO, PRU, PSX, TWX, WMB

Barchart Morning Call

BC - 1 hr 32 mins ago

Overnight Developments

  • Sep E-mini S&Ps this morning are up by +0.24% and European stocks are down slightly with the Euro Stoxx 50 down -0.06%. Spanish and Italian government bonds rallied on speculation the ECB will launch another round of sovereign-debt purchases to force European government bond yields lower. Spain's 10-year bond is down 8 bp at 5.58% and Italy's 10-year bond is down 16 bp at 5.88%. EUR/USD is up +0.01% as the dollar index is little changed. Commodity prices are mixed with crude oil up +0.19% and copper down -0.40%. Agricultural prices are lower on profit-taking with Dec corn down -1.37% and Nov soybeans down -0.76%. Sep T-notes are up +3 ticks.
  • Asian stocks today closed mixed: Japan -0.61%, Hong Kong +0.12%, China +1.10%, Australia -0.15%, South Korea -0.19%, India +0.12%.
  • In an interview that was conducted on June 29 and published on the Bundesbank website today, ECB Council member and Bundesbank President Weidmann said the ECB's independence "requires it to respect and not overstep its own mandate." The euro temporarily erased its gains against the dollar after the comments were released but rebounded after the Bundesbank said the interview was conducted on Jun 29.
  • Former ECB President Stark told Austrian state radio ORF that granting the European Stability Mechanism a banking license would violate European law saying "it is a clear violation of European law because it means unlimited and indirect state funding by the ECB."
  • German final-July manufacturing PMI was unexpectedly revised down to a 3-year low of 43.0 from the originally reported 43.3.
  • U.K. July manufacturing PMI fell -3.0 to 45.4, weaker than expectations of -0.2 to 48.4 and its steepest pace of contraction in 3 years.
  • U.K. July nationwide home prices fell -0.7% m/m and -2.6% y/y, weaker than expectations of -0.2% m/m and -1.9% y/y with the -2.6% y/y decline the biggest annual decrease in nearly 3 years.
  • China July manufacturing PMI unexpectedly slipped -0.1 to 50.1, weaker than expectations of a +0.2 increase to 50.4. Market Comments
    • Sep E-mini S&Ps this morning are up +3.25 points (+0.24%). The U.S. stock market fluctuated on both sides of unchanged throughout the day and finally settled mixed: S&P 500 -0.43%, Dow Jones -0.49%, Nasdaq 100 +0.02%. Stock prices were pressured after Jun U.S. personal spending unexpectedly stagnated along with long liquidation pressures ahead of Wednesday's Fed decision on interest rates. Stocks prices gained early Tuesday after July U.S. consumer confidence unexpectedly rose and after the July Chicago purchasing managers index unexpectedly increased.
    • Sep 10-year T-notes this morning are up +3 ticks. Sep 10-year T-note prices on Tuesday finished higher for a second day as stocks declined and as Jun U.S. consumer spending unexpectedly stagnated: TYU2 +3, FVU2 +2.5. T-note prices also found carry-over support from a rally in German bunds on safe-haven demand from the European debt crisis along with the Fed's purchase of $4.78 billion of Treasuries as part of its Operation Twist program to swap short-term debt in its holdings for longer maturities. Limiting strength in Treasuries was the unexpected increases in July U.S. consumer confidence and in the July Chicago purchasing managers index.
    • The dollar index this morning is little changed with EUR/USD +0.01% and USD/JPY +0.05%. The dollar index on Tuesday closed lower on reduced safe-haven demand as speculation increased the ECB on Thursday will take steps to stem the rise in European sovereign-bond yields: Dollar index -0.159 (-0.19%), EUR/USD -0.00045 (-0.04%), USD/JPY +0.03 (+0.01%). The dollar also weakened on concern the Fed may expand its balance sheet to stimulate the economy after Jun personal spending unexpectedly stagnated.
    • Sep WTI crude oil prices this morning are up 17 cents a barrel (+0.19%). Sep gasoline is up 2.34 cents per gallon (+0.84%). Crude oil and gasoline prices Tuesday settled lower on concern the Fed may refrain from announcing additional stimulus measures on Wed after U.S. consumer confidence and the Chicago purchasing managers index both unexpectedly rose in July: CLU2 -1.72 (-1.90%), RBU2 -0.0222 (-0.80%). Wednesday's weekly DOE inventory report is expected to show U.S. crude supplies fell -1.0 million bbl, gasoline stockpiles rose +500,000 bbl, distillate inventories climbed +1.0 million bbl and the refinery utilization rate fell -0.5 to 92.5% of capacity.
    • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit Today's U.S. Earnings Reports

      Earnings reports (ranked by market cap): CMCSA-Comcast (Consensus $0.48), MA-Mastercard (5.58), EPD-Enterprise Products Partners LP (0.58), TWX-Time Warner (0.58), EXC-Exelon (0.63), MET-MetLife (1.24), D-Dominion Resources (0.60), AMT-American Tower (0.42), ADP-Automaic Data Processing (0.53), AGN-Allergan (1.06), DVN-Devon Energy (0.82), PSX-Phillips 66 (1.78), PRU-Prudential Financial (1.54), WMB-Williams Cos. (0.25), MRO-Marathon Oil (0.59), GGP-General Growth Properties (-0.03).

      Global Financial Calendar

      Wednesday 8/1/12
      United States
      0700 ET Weekly MBA mortgage applications, previous +0.9% with purchase sub-index -3.2%, refi sub-index +1.8%.
      0815 ET July ADP employment change expected +120,000, June +176,000.
      0900 ET Treasury announcement of quarterly refunding.
      1000 ET July ISM manufacturing index expected +0.5 to 50.2, June -3.8 to 49.7. July ISM prices-paid sub-index expected +3.0 to 40.0, June -10.5 to 37.0.
      1000 ET June construction spending expected +0.4% m/m, May +0.9% m/m.
      1030 ET DOE Weekly Petroleum Status Report.
      1415 ET FOMC meeting decision. Federal funds rate target range expected unchanged at zero to 0.25%.
      1700 ET July total vehicle sales expected 14.00 mln, June 14.05 mln. July domestic vehicle sales expected 11.00 mln, June 11.05 mln.
      0100 ET Japan July vehicle sales, June +40.9% y/y.
      1150 ET Japan July monetary base, June +5.9% y/y.
      0355 ET German final-July manufacturing PMI expected unrevised from preliminary 43.3.
      0400 ET Eurozone final-July manufacturing PMI expected unrevised from preliminary 44.1.
      United Kingdom
      0200 ET UK July nationwide prices expected -0.2% m/m and -1.9% y/y, June -0.6% m/m and -1.5% y/y.
      0430 ET UK July manufacturing PMI expected -0.2% to 48.4, June 48.6. provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.