egative sentiment has been the primary driver of equity markets in recent weeks, as investors suffered bouts of indigestion from fears of slowing China growth, eurozone debt issues, and a decelerating US economic rebound from its initial recovery pace. Last week, however, news from China of 48.5% May export growth, a number of well-received debt auctions from peripheral euro nations along with Hungary's backtracking from earlier questions of solvency, and Fed Chairman Bernanke's assuaging report of slow, but steady US growth caused a sentiment adjustment, sending the DJIA and S&P500 to their finest weekly advance since February. This week's busy calendar will focus investors' attention on the US recovery's strength in its manufacturing activities, on non-existent inflationary pressures, with housing markets still slow to join in the general economic advance. Attempts to reconcile a divisive EU will remain the euro's centerpiece, even as the currency continues its consolidation efforts above the $1.20 level, with a possible French backlash to its austerity plans looming as a euro negative and liquidity still seeping from markets.
Manufacturing posts should continue to pace resurgence in US manufacturing operations throughout this week. On Tuesday, the regional report on Empire Manufacturing is projected to show a rise to 21.0 in June from 19.1 prior. Wednesday's release of May industrial production is expected to show a climb of 0.9% from 0.8% prior. And on Thursday, regional data from the Philly Fed is estimated to show a June rise to 20 from 21.4 prior.
Housing data is unlikely to paint a similar picture of resurgence as the government's expiration of homebuyers' tax credits leaves markets fragile despite low mortgage rate levels. On Tuesday, the National Association of Homebuilders releases its housing market index, estimated to hold steady at May's 22 level. On Wednesday, May housing starts and permits are slated for release, with starts expected to show a 3.3% MoM decline, and permits estimated to post a 2.5% rise from April levels. This translates into housing starts of 650K versus 672K prior, and permits at 625K versus 606K prior.
Inflation is expected to have remained tame due to ongoing slack in the economy, easing concerns of upward pressure on interest rates, even as St. Louis Fed President Bullard this morning said the crisis in Europe should not postpone Fed moves to lift interest rates as the US economy expands. The week's data reveals producer prices for May on Wednesday. Economists anticipate a 0.5% decline, with core PPI excluding food and energy prices expected up 0.1%, slowing from April's 0.2% rise. Thursday's consumer price release is projected to show a 0.2% May decline on the heels of April's 0.1% drop, with core CPI estimated up 0.1% following April's report of no change.
BP's Gulf spill disaster is ongoing, as shareholders and spill claimants vie for returns, with President Obama and UK Prime Minister Cameron vying for their countries' perceived best interests . While the big banks, including Goldman Sachs (NYSE:GS), and JP Morgan (NYSE:JPM), will feel the impact of fine-tuning to the financial regulatory reform bill, headed for a White House signature by the end of next week, with eyes on the outcome of plans to force banks to spin off separately capitalized, and often highly lucrative subsidiaries for their derivatives operations.
The DJIA is expected to rise above resistance at 10,300 today, as the SmarTrend(R) indicators continue to point to early signals that the summer rally is on.
In the corporate news, Cablevision (NYSE:CVC) announced plans to purchase privately-owned Bresnan Communications for $1.36 billion. RailAmerica (NYSE:RA) reported its June car loads improved 9.1% YoY from May levels. FBR upgraded T Rowe Price (NASDAQ:TROW) from "market perform" to "outperform," taking the price target from $58 to $65. Citigroup (NYSE:C) upgraded PulteGroup (NYSE:PHM) shares from "hold" to "buy," with a price target of $14. KeyBanc upgraded Polaris (NYSE:PII) to "buy" from "hold," with a $73 price target. Citigroup (NYSE:C) downgraded Akamai (NASDAQ:AKAM) to "hold" from "buy," with a price target of $14. Deutsche Bank (NYSE:DB) initiated coverage of the airlines with a favorable review, advising purchase of six major airlines, including Alaska Air (NYSE:ALK), American Airlines (NYSE:AMR), Continental (NYSE:CAL), Delta (NYSE:DAL), US Airwarys (NYSE:LCC), and United. (NASDAQ:UAUA).
Here are the top five stocks to watch in today's morning call. To examine the list of stocks changing trends in the last week, please visit www.tradethetrend.com.
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SmarTrend Morning Market Update: August 3, 2010by TradeTheTrend55 views
wouldn't mind doing her.
robertplant634 11 months ago
futuremoneytrends. com/QE_pick_a_number. html
unreallogic 1 year ago
how much is her stock?
khunopie 1 year ago