Barchart.com Morning Call for Monday, July 2, 2012
- Sep E-mini S&Ps are trading slightly higher by +2.00 points (+0.15%) on support from the 1.10% rally in European stocks and on generally stronger-than-expected global economic data overnight and over the weekend. Commodities are mixed with Aug crude oil down -1.55%, Aug gold down -0.83%, and Sep copper down -0.96%, but with agricultural prices trading higher. The dollar index is mildly higher by +0.15% and EUR/USD is down -0.33% on technical bounces after last Friday’s sharp moves. Sep 10-year T-notes are up 3 ticks.
- The Euro Stoxx 50 index this morning is up +1.10% as Spanish and Italian yields today continued to drop. Germany’s DAX is up +1.14% and the French CAC40 is up 1.20%, while Italy’s MIB is up +0.32% and Spain’s IBEX 35 is up just +0.01%. Barclays Plc is up 5.1% today after Chairman Marcus Agius resigned over the weekend to take responsibility for last week’s record 290 billion pound fine for alleged price-fixing by former Barclays traders in the Libor market. Asian stocks today closed mixed: Japan -0.04%, China +0.15%, Taiwan +0.67%, Australia +0.94%, Singapore +1.12%, South Korea -0.18%, India -0.18%, Turkey -0.34%.
- The Spain 10-year bond yield today fell by another 7 bp to 6.22%, adding to last Friday’s 61 bp plunge to 6.29. The Italian 10-year bond yield today fell by another 9 bp to 5.72%, adding to last Friday’s 38 bp drop to 5.81%.
- China’s June manufacturing index from the National Bureau of Statistics and China Federation of Logistics and Purchasing, which was released on Saturday, fell by 0.2 points to 50.2 from 50.4 in May, which was stronger than market expectations for a decline to 49.9. The June HSBC/Markit June manufacturing PMI for China on Sunday night was revised higher to 48.2 from the preliminary report of 48.1, which left it down by 0.2 points from 48.4 in May.
- Japan’s June Tankan report on Sunday night for large manufacturers was bullish with a report of -1 versus expectations of -4 and March’s report of -4. The report indicated that Japan’s large manufacturers became less pessimism due to lower commodity prices and the prospects for higher profits. The Tankan non-manufacturing index rose to 8 from 5 in Q1, which was stronger than market expectations of 7.
- UK June manufacturing PMI rose by 2.7 points to 48.6, which was stronger than market expectations of a 0.6 point increase to 46.5.
- Germany’s June final manufacturing PMI was revised higher by 0.3 points to 45.0 from the preliminary report of 44.7, which was stronger than market expectations for an unrevised report. The Eurozone June final manufacturing PMI was revised higher to 45.1 from 44.8, which was stronger than market expectations for an unrevised report.
- Eurozone May unemployment rate rose by 0.1 point to a record high 11.1% from 11.0% in April, which was in line with market expectations.
Inc. 500 Company Gives People Access To New Software That
Picks Winning Stocks Up To 92.75% Of The Time
In an unprecedented move company CEO reluctantly
agrees to allow 475 investors access to prove this
technology does NOT illegally “spy” on the world’s most
accurate stock-picking services to make investors
serious money in any market conditions.
- Sep E-mini S&Ps this morning are trading +2.00 points (+0.15%) on support from today’s +1.10% rally in European stocks and generally stronger-than-expected global economic data such as the Chinese manufacturing PMI reports, the Japanese Tankan report, and the upward revision in the German and Eurozone manufacturing PMI reports. The US stock market on Friday closed sharply higher: S&P 500 +2.49%, Dow Jones +2.20%, Nasdaq 100 +3.12%. The US stock market was very encouraged by the outcome of the 2-day EU summit at which Eurozone leaders agreed to drop the seniority of bailout facilities in sovereign debt restructurings, which will help attract bond investors back into Spanish debt and allow Spain to more easily pull of its attempt to get a 100 billion euro bailout for its banks but continue to finance its government budget deficit in the private bond markets. Eurozone officials also agreed to move towards a single European bank supervision system and then allow the ESM bailout facility to directly provide bailouts to banks, thus alleviating the current system of making the loan to the government and further impairing its credit rating. Spanish and Italian bond yields dropped sharply on Friday, indicating a substantial easing of the European debt crisis, which has recently been the main factor holding back the U.S. economy.
- Sep 10-year T-notes this morning are up 3 ticks on a technical bounce after last Friday’s plunge. Sep 10-year T-note prices on Friday fell sharply: TYU2 -17.5, FVU2 -6.75. T-note prices fell on reduced safe-haven demand with the sharp rally in the stocks and the substantial progress that Eurozone officials made towards alleviating the European debt crisis.
- The dollar index this morning is up +0.12 points (+0.15%) and EUR/USD is down -0.0042 (-0.33%) on technical bounces after last Friday’s sharp moves. USD/JPY is down -0.10 points (-0.13%). The dollar index on Friday rallied very sharply: Dollar index -1.18 (-1.43%), EUR/USD +0.0223 (+1.79%), USD/JPY +0.33 (+0.42%). The dollar index fell on reduced safe-haven demand and EUR/USD rallied sharply with the agreement of Eurozone leaders to break the death between banks and sovereign governments in Europe and to make ease the path for the bailout of the Spanish banking system.
- Aug WTI crude oil prices this morning are down -1.32 (-1.55%) and Aug gasoline is down 0.0422 (-1.60%) on some long liquidation pressure after last Friday’s sharp rallies. The strike by Norwegian oil workers entered its second week and no talks are scheduled between the unions and industry representatives. Crude oil and gasoline prices on Friday closed with an extraordinarily sharp rally: CLQ2 +7.27 (+9.36%), RBQ2 +0.1545 (+6.24%). Crude oil prices rallied on the Eurozone summit outcome and a huge bout of short-covering on hopes that improved global economic growth will revive fuel demand. Oil prices also rallied on the week-long strike by Norwegian oil workers that has cut Norwegian oil production by about 15%. In addition, the U.S. financial sanctions on overseas banks that facilitate Iranian oil transactions went into effect last Thursday and the European embargo on Iranian oil went into effect this past Sunday (July 1). Iran late last week issued another bellicose statement that it will never give up its inalienable right to uranium enrichment. The market is looking ahead to Tuesday’s meeting between the world powers and Iran about its nuclear program. That meeting was downgraded to the technical level because of the lack of any progress at the first three rounds of meetings.
- 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
Todays Top 50 Stocks – Complimentary Tool
This powerful tool will provide a list of todays top 50 stocks
based on MarketClubs Trade Triangle and Smart Scan technology.
These big market movers change quickly, and this list will too,
so you can find opportunities throughout the trading day.
Yes the markets are volatile, and yes the economy is struggling but not only can we help you survive, youll
make money as blindsided investors get clobbered. If this was Vegas, the house would ban an edge like this!
But this is the markets and you and other traders will have exclusive use of this revolutionary investment tool
that youll use to multiply your wealth regardless of what the rest of the traders are doing, because youll be
one step ahead!.
Today’s U.S. Earnings Reports
Earnings reports (sorted by mkt cap): CZZ-Cosan (consensus $0.14), AYI-Acuity Brands (0.79).
Global Financial Calendar
|1000 ET||June ISM manufacturing index expected -1.5 to 52.0, May -1.3 to 53.5. May ISM prices-paid sub-index expected -1.8 to 45.7, May -13.5 to 47.5.|
|1000 ET||May construction spending expected +0.2%, Apr +0.3% m/m.|
|1100 ET||USDA weekly grain export inspections.|
|1130 ET||Weekly 3-mo and 6-mo T-bill auctions.|
|1315 ET||Fed’s Williams speaks in San Francisco.|
|1600 ET||USDA Crop Progress.|
|0100 ET||Japan June vehicle sales, May +66.3% y/y.|
|1950 ET||Japan June monetary base.|
|2130 ET||Japan May labor cash earnings, Apr +0.2% y/y.|
|2100 ET||China June non-manufacturing PMI, May 55.2.|
|0355 ET||German June final manufacturing PMI expected unrevised from preliminary of 44.7.|
|0400 ET||Eurozone June final manufacturing PMI expected unrevised from preliminary 44.8.|
|0500 ET||Eurozone May unemployment rate expected +0.1 to 11.1%, April 11.0%.|
|0430 ET||UK June final manufacturing PMI expected 46.5 vs preliminary 45.9.|
Barchart Morning Call is a free morning email newsletter containing overnight stock market and global news occurring after the previous session’s close, today’s US market factors, earnings and global economic calendars, and morning quotes. In order to assure consistent delivery of the newsletter into your email box, you should add the email address
firstname.lastname@example.org to your Address Book. If the newsletter comes into your spam or bulk mail folder, then you should follow the directions in your email system on how to whitelist the newsletter to ensure consistent delivery in the future into your regular email box. For troubleshooting help on email delivery, please visit
This newsletter provides valuable content to subscribers but is considered by regulation to be a commercial and advertising message. This is a permission-based newsletter. You are receiving this free email either because you opted-in to this subscription or because you have a prior existing relationship with Barchart.com and previously provided your email address to us. This email is not spam and fully complies with all laws and regulations. If you do not wish to receive this email, then we apologize for the inconvenience. You can immediately discontinue receiving this email by clicking on the nearby button and you will no longer receive this email. We will immediately redress any complaints you may have. If you have any questions about this newsletter, please send an email with your questions to
Copyright © 2012, All rights reserved. The information contained herein is derived from public sources believed to be reliable but is not guaranteed as to its accuracy or completeness. No responsibility is assumed for the use of this material and no express or implied warranties nor guarantees are made. Nothing contained herein should be construed as an offer to buy or sell, or as a solicitation to buy or sell, any securities or derivative instruments.
This message was sent by Barchart.com, 330 S. Wells St., Suite 618, Chicago, IL, 60606. Tel: (312) 554-8122. Fax: (312) 939-4135. Web site:
This message was sent to