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 Post subject: July 20th Monday 2009
PostPosted: Mon Jul 20, 2009 6:45 pm 
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Key WRB Price Action

3min Regular Session Chart - One particular key change in supply/demand was @ 1348pm est in the S&P 500 Emini ES futures that provided support for today's late afternoon price action rally upwards along with setting up Long signals @ 1433pm and 1503pm est via our VTR strategies.

Also, the CTI news helped with that key change in supply/demand late in the afternoon trading session.

FYI - The above discussion is about one key WRB price action even though there were other key WRB price actions that occurred during the trading day that could be used to confirm entry signals, exit signals, profit targets et cetera.

Simply, knowledge of different types of key WRB's is what results in a complete understanding of the price action being traded as it is occurring in real-time.


http://www.thestrategylab.com/WRBAnalysisTutorials.htm

http://www.thestrategylab.com/TradeStrategies.htm

Today's trades that were posted in real-time in #FuturesTrades chat room via my IRC user name NihabaAshi. You can review each trade from entry to exit along with commentary and an occasional trading tip because its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=61&t=249

My Trading Performance: +13.50 Emini ES points

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Stocks Charge Higher
Investors encouraged by quarterly results, a potential financing deal for troubled lender CIT. Dow rallies; Nasdaq, S&P 500 gain more than 1%.
By Catherine Clifford, CNNMoney.com staff writer
Last Updated: July 20, 2009: 5:21 PM ET

NEW YORK (CNNMoney.com) -- Stocks rallied Monday, with the Dow adding more than 100 points and the S&P closing at an 8-month high, as investors signaled optimism about second-quarter financial reports.

Wall Street also got a charge from reports that small business lender CIT has secured private-sector financing to keep it out of bankruptcy. Investors were encouraged to see that the financial sector can take care of itself, without government bailout funds.

The Dow Jones industrial average (INDU) jumped 104 points, or 1.2%. Monday's rally pushed the blue-chip index into positive territory (in 2009) for the first time in more than 5 weeks.

The broader S&P 500 (SPX) index added 11 points, or 1.1%, to close at its highest level in more than 8 months.

The tech-heavy Nasdaq composite (COMP) added 23 points, or about 1.2%, to stretch to its highest level since early October, or about 9 months.

The major indexes are coming off a positive week. Last week was the Dow and S&P 500's first up week -- and the Nasdaq's second -- in the past five.

The major force on Wall Street is second-quarter earnings.

"We have a very heavy earnings calendar, light economic news calendar," said Fred Dickson, chief market strategist at D.A. Davidson & Company. "The name of the game is earnings."

Companies have beat analysts' estimates by more than in other quarters, according to Ed Clissold, senior global analyst at Ned Davis Research, and that sentiment is supporting stocks Monday.

"The fact that companies haven't come out with the dire earnings that were seen in the first quarter is a positive sign," he said.

Betting on recovery: Wall Street is using the second-quarter financial reports to set expectations for the pace of the economic recovery.

Investors "are looking at incremental changes in the earnings reports to give them a clue as to how companies are positioned to rebound when the economy starts to pick up some forward momentum," said Dickson.

A report from Goldman Sachs (GS, Fortune 500) released Monday increased its 2009 target for the S&P 500 index to 1060 from 940, a 13% jump in the index.

The report also cautioned that "the U.S. economic backdrop represents the most significant risk to our equity market forecast," and that "the risk of a double-dip recession is significant." Stocks hit their recent lows on March 9 of this year and have been struggling higher.

Market breadth was positive. On the New York Stock Exchange, advancers beat decliners by 3 to 1 on a volume of 1.13 billion shares. On the Nasdaq, advancers beat out decliners by almost 5 to 1 on a volume of 2.08 billion shares.

Earnings for the week: This week, 145 of the S&P 500 companies, or 23% of the broad index, are due to report quarterly results. Among them, 12 Dow components, including American Express (AXP, Fortune 500), Microsoft (MSFT, Fortune 500), Coca-Cola (KO, Fortune 500) and Merck (MRK, Fortune 500), are set to release results.

Last week, a slew of major tech and finance companies reported either better-than-expected earnings or offered positive guidance: Intel (INTC, Fortune 500), IBM (IBM, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Goldman Sachs (GS, Fortune 500), and Citigroup (C, Fortune 500).

"The mood of the market was lifted by the earnings surprises last week," said Dickson. Even though companies were posting weak year-over-year sales and profits, investors were focused on the fact that companies beat analyst expectations.

Texas Instruments (TXN, Fortune 500) reported earnings after the closing bell Monday. The chipmaker posted sales that fell 27% from the year ago period and net income that plunged 56% from the same quarter a year ago. Compared to the first quarter of 2009, however, sales and profits jumped.

CIT: The board of CIT (CIT, Fortune 500) has approved a deal for a $3 billion loan from bondholders in order to stave off a bankruptcy filing, according to published reports. The deal is expected to be announced later Monday.

The small and midsize business lender has been scrambling to raise money after the government said it would not provide it additional bailout funds. CIT received $2.3 billion in aid from the government late last year.

CIT (CIT, Fortune 500) shares had lost more than 80% since the beginning of June. On Monday, shares surged 79% to $1.25 per share.

The way that CIT's financial struggles have been managed have a positive impact on the market, according to Clissold.

"If you compare it to the chaos that surrounded Lehman and AIG, it shows you how far we have come," he said.

Economic reports: The index of leading economic indicators (LEI) rose 0.7% in June, according a report from the Conference Board. Economists polled by Briefing.com were expecting the index to have risen by 0.5% in June, according to a consensus estimate. LEI rose 1.2% in the previous month.

Bonds: Treasury prices bounced, with the yield on the benchmark 10-year note falling to 3.61% from 3.64% Friday. Treasury prices and yields move in opposite directions.

Other markets: In global trade, Asian stocks rallied on the reports about the CIT loan, with Hong Kong's Hang Seng index ending the day up 3.7%. Tokyo was closed for a holiday. European markets ended between 1% and 2% higher.

In currency trading, the dollar lost ground against the euro and British pound. Meanwhile, the greenback edged higher against the Japanese yen, which is considered another safe-haven currency.

U.S. light crude oil for August delivery settled up 42 cents to $63.98 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rose $11.30 to $948.80 an ounce.

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Yahoo! Finance

4:30 pm : The stock market's upward momentum continued today as each of the major averages finished with solid gains of more than 1%. The higher close put the Dow Jones in positive territory for the year (+0.82%), as the S&P 500 closed at its best levels of the year, and the Nasdaq has now put together nine straight winning sessions and is up a remarkable 21% for the year.

A favorable bias was set before the open when the Wall Street Journal reported that CIT Group (CIT 1.25 +0.55) has reached an agreement with its bondholders to secure $3 billion in last minute, rescue financing. While there hasn't been a formal announcement from the company regarding the details of this deal, it is believed that the financing will charge a high interest rate and is not a long term fix to the company's financial needs. However, the deal should keep the lender out of bankruptcy court and buy the company time to restructure.

The CIT news may have been the most widely reported and covered story today, but there were other catalysts that supported today's strength. Corporate earnings continue to surprise to the upside, with Halliburton (HAL 22.33 +0.95) Hasbro (HAS 26.45 +1.07), Johnson Controls (JCI 23.08 +1.56), and Eaton (ETN 48.94 +3.99) all reporting better-than-expected second quarter results before the open. Additionally, a majority of the overseas markets posted strong gains, and Goldman Sachs raised their 2009 target for the S&P 500 to 1060.

The economic calendar was light today, but did include the June leading indicator data, which was better than expected at +0.7% vs. the +0.5% consensus. This marked the third straight monthly increase, although it was a slower pace of increase than the 1.3% and 1.0% increases posted for May and April, respectively. The main drivers of the June increase were the interest rate spread (0.35%), building permits (0.22%), stock prices (0.10%), jobless claims (0.08%), the average workweek (0.06%), the pace of deliveries (0.05%), and consumer goods orders (0.02%). This economic data was viewed positively by the market as the major averages steadily moved higher following the release.

In commodities, August crude oil closed higher by $0.56 to $64.12 and August natural gas ended up 1.3 cents to $3.683. Gold was strong for the entire session and finished higher by $11.70 to close at $949.20 on weakness in the U.S. dollar (-0.79%). After moving in a fairly wide range today, the 10-Year Treasury Note finished the session higher by 9/32 with a yield of 3.608%.

Looking ahead to tomorrow, the pace of earnings releases will pick up considerably and includes closely followed names such as Caterpillar (CAT 36.65 +2.66), Coca-Cola (KO 51.03 +0.71), Apple (AAPL 152.91 +1.16), Yahoo (YHOO 17.01 +1.01), and UnitedHealth (UNH 24.84 -0.25). There are no major economic releases scheduled for tomorrow. DJ30 +104.21 NASDAQ +22.7 SP500 +10.8 NASDAQ Adv/Vol/Dec 1808/2071/858 NYSE Adv/Vol/Dec 2314/1126/706

3:30 pm : The Dow has broken to a session high. The S&P 500 and Nasdaq are near their best levels of the session.

Precious metals fared well this session. A weak dollar helped buoy this movement. Both gold and silver futures opened the pit session significantly higher. They actually closed down slightly from their opening levels, but were still finished higher on the session.

August gold closed 1.2% higher at $949.20 per ounce. Considerable strength is being seen in shares of Freeport-McMoRan (FCX 56.82 +1.51) this session. The gold and copper miner is set to report a $0.69 profit in its second quarter earnings report due out tomorrow morning.

September silver futures narrowly outperformed gold this session, closing 1.6% higher at $13.63 per ounce.

Meanwhile, natural gas futures traded lower in the morning session. They hit a session low at $3.52 per contract in the late morning before recovering in the afternoon session. They were able to recoup all of the losses and closed at $3.68 per contract, up fractionally.

August crude oil futures traded in positive territory for most of the session. They dipped below the unchanged level twice during the pit trade but quickly bounced back into positive territory both times. The contracts closed 0.8% higher at $64.12 per barrel.DJ30 +92.65 NASDAQ +17.86 SP500 +9.40 NASDAQ Adv/Vol/Dec 1711/1.67 bln/948 NYSE Adv/Vol/Dec 2260/796 mln/736

3:00 pm : As we head into the final hour of trading, the major averages are moving in a sideways fashion, trading in a narrow range. Some investors and traders may now be choosing to wait on the sidelines to take in another set of earnings after the bell.

After Intel's (INTC 18.69 -0.11) impressive second quarter earnings report on July 14, participants are now looking for solid results from Texas Instruments (TXN 23.20 +0.20), which is scheduled to report June quarter results after the close tonight. Current First Call consensus calls for earnings per share of $0.18 on revenue of $2.4 bln. Shares of Texas Instruments have surged nearly 70% since hitting its 2009 lows in early March.DJ30 +72.1 NASDAQ +12.3 SP500 +6.1 NASDAQ Adv/Vol/Dec 1557/1488/1075 NYSE Adv/Vol/Dec 2147/708.5/837

2:35 pm : The S&P 500 has been see-sawing between the 944 and 948 levels for the past few hours of the session, unable to push past the upper end of that range. While the market is still logging decent gains, it has been unable to sustain its intra-day rallies.

Large cap technology stocks continue their hot streak as shares of Cisco (CSCO 21.15 +0.64) are particulary strong today following a Credit Suisse upgrade (to Outperform from Neutral) from before the open. Shares of Apple (AAPL 153.38 +1.63) have also been outperforming today, heading into the company's earnings report tomorrow after the close. DJ30 +68.01 NASDAQ +12.6 SP500 +5.9 NASDAQ Adv/Vol/Dec 1588/1399/1073 NYSE Adv/Vol/Dec 2126/670.9/838

2:00 pm : The major indices trade in the middle of this session's range. Defensive-oriented consumer staples (-0.3%), healthcare (+0.1%) and utilities (+0.2%) are underperforming on a relative basis.

Atlanta Fed President Lockhart said that the economy is stabilizing, forecasting a recovery in the second half of 2009, according to Dow Jones.

Today's advance has pushed the Dow into positive territory for the year, up 0.3%. For comparison, the S&P 500 is up 4.8% and the Nasdaq has advanced 20.4% year-to-date.DJ30 +58.57 NASDAQ +13.27 SP500 +6.14 NASDAQ Adv/Vol/Dec 1526/1.25 bln/1085 NYSE Adv/Vol/Dec 2101/607 mln/847

1:30 pm : While stocks have lost some steam over the past hour, the 10-year Note has picked up some momentum and is currently higher by 14/32 to yield 3.6%. Before this recent upward move, the 10-year had spent much of the session near the unchanged mark, moving in a very tight range.DJ30 +46.5 NASDAQ +10.9 SP500 +4.8 NASDAQ Adv/Vol/Dec 1512/1155/1081 NYSE Adv/Vol/Dec 2080/560/864

1:05 pm : Continuing on the strength of last week's considerable gains, the stock market has continued its impressive upswing. Today, the market has been supported by news that specialty finance company CIT Group (CIT 1.56 +0.56) has reached an agreement with its bondholders to secure $3 bln in rescue financing and by another set of better than expected earnings reports.

Also helping to set a positive tone for the session were considerable gains in many of the major international markets as well as news that Goldman Sachs raised their 2009 S&P 500 target to 1060.

Before the open, The Wall Street Journal reported that CIT Group's last minute deal with its bondholders should help keep the firm out of bankruptcy. The deal charges CIT Group high interest rates and it doesn't permanently fix the company's financing issues, but it does buy time for the lender to restructure. Also, later in the morning, CNBC reported that the government has not ruled out its own financial assistance.

The bulk of corporate earnings are set to be released later this week -- particularly Wednesday and Thursday -- but there were a few notable names that reported June results before the bell. Oil and gas giant Halliburton (HAL 21.92 +0.54) reported second quarter earnings of $0.30/share, which beat consensus estimates by $0.03. The company's top-line fell by 22% from last year, but shares are still up 2.5% due to the earnings beat.

Other companies to post upside results include Hasbro (HAS 26.31 +0.93), Johnson Controls (JCI 22.86 +1.34), and Eaton (ETN 48.26 +3.31). While none of those names are considered "market movers" by themselves, it does continue the overall trend that second quarter earnings are coming in better than many had expected.

Following the strong opening for the market, the major averages quickly reversed course to cut into the initial gains and put the major averages near the unchanged mark. However, at 10:00 ET the June leading indicator data was released, and was better than expected at +0.7% vs. the +0.5% consensus. This marked the third straight monthly increase, although it was a slower pace of increase than the 1.3% and 1.0% increases posted for May and April, respectively.

The main drivers of the June increase were the interest rate spread (0.35%), building permits (0.22%), stock prices (0.10%), jobless claims (0.08%), the average workweek (0.06%), the pace of deliveries (0.05%), and consumer goods orders (0.02%). This economic data was viewed positively by the market as the major averages have steadily moved higher since the release.

In commodities, crude oil had a strong opening, but gave back its gains in mid-morning trade and briefly slipped into the red. Crude was able to rebound though while the stock market continued to advance, and is now up over 1%. Gold (+1.4%) has been strong all morning on a weak U.S. dollar.

Since the June Leading Indicator data was released, the pace of news has slowed considerably. After the close, however, there are a few key earnings reports that will garner significant attention. A few of the more prominent names include Texas Instruments (TXN 23.16 +0.15), Legg Mason (LM 25.13 +0.92), and Boston Scientific (BSX 10.13 +0.09). DJ30 +59.2 NASDAQ +15.1 SP500 +6.1 NASDAQ Adv/Vol/Dec 1605/1069/982 NYSE Adv/Vol/Dec 2126/522.1/784

12:35 pm : One sector that has been showing particular strength has been retail (+1.72%). Since CIT Group is a major provider of financing to the retail sector, its $3 billion agreement with bondholders to avert bankruptcy is viewed positively for that industry as well. A bankruptcy by CIT bankruptcy would significantly disrupt fall shipments for many smaller and mid-sized retailers. Shares of Abercrombie and Fitch (ANF 25.71 +0.63), American Eagle (AEO 14.40 +0.27), and Aeropostale (ARO 38.20 +0.97) are all putting in considerable gains.DJ30 +70.6 NASDAQ +15.8 SP500 +6.4 NASDAQ Adv/Vol/Dec 1581/2670/965 NYSE Adv/Vol/Dec 2103/480.6/776

12:00 pm : As we head into the slower lunch time hours, the major averages appear to have settled into a tighter range as the volatility of early morning action has eased.

The stock market has moved off its morning lows and is now putting in more meaningful gains. The internals show that gains are fairly broad based, and retail (+1.2%) is now one of the strongest sectors. DJ30 ++42.5 NASDAQ +10.2 SP500 +4.2 NASDAQ Adv/Vol/Dec 1486/878.4/1026 NYSE Adv/Vol/Dec 2016/429.5/848

11:30 am : Shares of CIT Group (CIT 1.34 +0.64) continue to soar today, up about 93%. In addition to the agreement CIT forged with its bondholders to secure $3 bln in financing, CNBC has now reported that the government has not ruled out the possibilty of lending financial assitance to the compnay. Today's CIT news has sent shares of other specialty finance companies higher, including KKR Financial (KFN 0.98 +0.07), Equifax (EFX 26.25 +0.54), and Icahn Enterprises (IEP 36.24 +0.44). The financial sector as a whole is up 0.81%.

In commodities, crude oil recently slipped into the red, and is now near the unchanged mark after spending much of the morning in positive territory.DJ30 +49.9 NASDAQ +9.9 SP500 +4.7 NASDAQ Adv/Vol/Dec 1491/2605/1002 NYSE Adv/Vol/Dec 2004/2961/830

11:00 am : In mid-morning trade, stocks have slid lower and have given back a majority of the gains from ealier. The major averages are only slightly higher now.

One area that is notably weak are the health insurers. Shares of Aetna (AET 25.59 -0.80) are off by 2.5%, UnitedHealth (UNH 24.65 -0.44) is down 1.7%, and Wellpoint (WLP 49.69 -0.30) is lower by 0.60%. Before the open, Reuters.com reported that administration officials defended President Barack Obama's broad health care proposals and urged a skeptical public not to judge the Democrats' overhaul until Congress writes a final version. Facing independent budget predictions that contradict the White House's rhetoric, officials sought to refute Republican objections to massive changes in how Americans receive health care. They emphasized that Congress has not yet settled on an outline for health care legislation and reiterated Obama's desire for a bipartisan approach

One stock posting massive gains is Human Genome Sciences (HGSI 9.45 +6.14), up an astounding 185%. The company and GlaxoSmithKline (GSK 37.46 +1.10) announced that BENLYSTA met the primary endpoint in BLISS-52, the first of two pivotal Phase 3 trials in patients with serologically active systemic lupus erythematosus. "The BLISS-52 results demonstrated that BENLYSTA has the potential to become the first new approved drug in decades for people living with systemic lupus," said H. Thomas Watkins, HGSI President and Chief Executive Officer. DJ30 +24.0 NASDAQ +5.4 SP500 +2.2 NASDAQ Adv/Vol/Dec 1417/642.4/998 NYSE Adv/Vol/Dec 1904/319.3/894

10:35 am : The S&P 500 remains in positive territory this morning after opening sharply higher. In commodities, energy and metals remain higher, excluding natural gas, which is trading near session lows.

August crude oil touched highs shortly before the open, just under the $65 level, but has been trending lower in morning trade. Currently, crude is 0.9% higher at $64.16 per barrel.

Natural gas opened modestly higher, but quickly reversed into negative territory to fresh morning lows of $3.554. Natural gas continues trading near session lows, currently 3.0% lower at $3.559.

The dollar remains lower this morning, which is providing strength to precious metals. August gold is currently 1.3% higher at $949.80 per ounce, while September silver is 1.7% higher at $13.64 per ounce. DJ30 +51.16 NASDAQ +8.67 SP500 +3.92 NASDAQ Adv/Vol/Dec 1483/493.8 mln/894 NYSE Adv/Vol/Dec 2013/254.0 mln/746

10:05 am : After giving back some of the initial gains, the stock market is now lifting higher after the June leading indicators came in better than expected at +0.7% vs. +0.5% consensus. The Nasdaq is currently outperforming as large cap tech names, such as Apple (AAPL 154.19 +2.44), Cisco (CSCO 20.95 +0.45), and IBM (IBM 116.34 +0.91), have started the session strongly.

Regarding the financial sector, Moody's has commented that the global banking system has finally gotten to its feet, but it is still struggling to stand up straight. The agency says, "Despite general signs that the world's economy is stabilizing, and a profitable quarter for some banks, most are facing significant hurdles on their path to economic recovery..."DJ30 +77.6 NASDAQ +18.8 SP500 +7.8 NASDAQ Adv/Vol/Dec 1570/2403/719 NYSE Adv/Vol/Dec 2078/2819/605

09:50 am : The stock market is off to a good start for this busy earnings week in which approximately 30% of the S&P 500 is scheduled to report June quarter earnings. Gains are broad based with each of the major averages solidly higher.

Following Halliburton's (HAL 21.88 +0.50) better than expected second quarter earnings, energy (+1.5%) and materials (+1.9%) are showing early leadership. Financials are also strong this morning after CIT Group (CIT 1.42 +0.72) reached an agreement with its bondholders to secure $3 billion in emergency financing. One of the few major sectors to open lower is health care, lower by 0.26%. DJ30 +51.9 NASDAQ +12.1 SP500 +6.0 NASDAQ Adv/Vol/Dec 1429/2340/798 NYSE Adv/Vol/Dec 1971/2722/663

09:15 am : S&P futures vs fair value: +6.50. Nasdaq futures vs fair value: +5.30. Equity futures are pointing to a higher open in a continuation of last week's momentum. Overseas markets started the week on a strong note as well, with 3%+ gains in Asia outpacing the gains in Europe, which were closer to 1.5%. Positive news on CIT is helping sentiment, as reports indicate the company reached an agreement securing $3 bln in last minute financing from its bondholders Sunday in a deal that should keep it out of bankruptcy court. Additionally, Goldman Sachs raised its year-end S&P 500 price target to 1060 from 940.

Earnings continue to provide support this morning, with strong results from Eaton (ETN +2.5%), Haliburton (HAL +2.5%), Hasbro (HAS +3.4%), Johnson Controls (JCI +4.2%) and PetMed Express (PETS +5.9%) sending those stocks higher in the pre-market, while a disappointing report from oil services company Weatherford (WFT) is dragging its shares lower by 7%. Look for earnings reports from Texas Instruments (TXN), Legg Mason (LM), and Boston Scientific (BSX) after the market closes.

In other news, Harman International (HAR) shares are 16% higher on an AME Info report that Private Investment Group Arabian Peninsula Group announced plan to acquire Harman in a public tender offer. According to the report, APG is willing to offer Harman shareholders $49.50 per share.

Looking at the commodities markets, weakness in the dollar is leading to gains in crude oil, which is up nearly 1%, and gold, which is up 1.5%.

09:00 am : S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +3.50.

The stock market is still indicated to start the session in positive territory, although futures have pulled back over the past hour and are now only modestly higher. Outside of the CIT Group (CIT) news, in which the company has reached an agreement with its bondholders to secure $3 bln in financing, it has been a fairly quiet morning so far in terms of market moving events.

On the earnings front, Halliburton (HAL) reported Q2 earnings of $0.30 per share, excluding non-recurring items, which was $0.03 better than the First Call consensus of $0.27. Revenues fell 22.1% year/year to $3.49 bln vs. the $3.43 bln consensus. Shares have reacted positively in pre-market trading, up approximately 2.5%.

In commodities, crude oil is up nearly 1% while gold is putting in gains of about 1.5%. The dollar is currently off by about 0.75%.

08:30 am : S&P futures vs fair value: +7.70. Nasdaq futures vs fair value: +10.80.

In the international markets, the the MSCI Asia Pacific added 3% and is set to close at its highest level since September 26. Hong Kong's Hang Seng Index climbed 3.7%, which was Asia's biggest advance. South Korea's Kospi Index rose 2.7% and Australia's S&P/ASX Index gained 1.2%. Japan is closed for a holiday. Overall, the MSCI has rallied 25% in the past three months. In terms of specific stocks, China Life -- the nation's largest insurer -- climbed 6.5% as the China Insurance Regulatory Commission said the country's insurers may post a 98% increase in profit for the first half of the year. Also, China's largest metal producer, Jiangxi Copper, soared 10% while James Hardie Industries, the biggest seller of home siding in the U.S., rose 5.9% in Australia.

In Europe, London's FTSE is up 1.4%, Germany's DAX is higher by 1.47%, and France's CAC is advancing by 1.55%. Following news of CIT Group's (CIT) last minute agreement with its bondholders, Reuters reported that banking and financial stocks were the biggest gainers. Lloyds advanced 6.2%, on news that the bank may post a profit for the first six months of the year after accounting rules allowed it to write back billions of pounds of sub-prime investments. On the downside, Volkswagen AG, Europe's biggest carmaker, dove 9% lower after a report suggested that Porsche may delay a decision on combining the companies until the end of July.

08:00 am : S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +6.25.

Following strength in many of the major international markets, the S&P 500 and Nasdaq futures are also signaling for a higher open this morning.

Perhaps the most significant news item this morning is that the Wall Street Journal reported that CIT Group (CIT) appears to have reached an agreement securing $3 bln in last-minute rescue financing from its bondholders Sunday in a deal that should keep the lender out of bankruptcy court. While CIT's financial troubles haven't garnered the attention level that the larger Wall Street investment banking firms did, CIT plays a key role in that it provides basic financing for thousands of small and midsized apparel retailers and vendors.

The pace of earnings releases will pick up as the week progresses. For today, some of the larger names to report include Haliburton (HAL) and Johson Controls (JCI) before the open, and Texas Instruments (TXN), Legg Mason (LM), and Boston Scientific (BSX) after the market closes.

06:23 am : S&P futures vs fair value: +7.50. Nasdaq futures vs fair value: +12.30.

06:22 am : Nikkei...Holiday......... Hang Seng...19502.37...+696.70...+3.70%.

06:22 am : FTSE...4453.88...+65.10...+1.50%. DAX...5050.94...+72.40...+1.50%.

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