Noon Report
Index futures were all indicating higher in pre-open trade helped the GM earnings announcement that flogged expectations at 2.29 per share vs an estimated $1.08 per share. Marathon oil also beat earnings estimates by 12 cents/share coming in at $2.25 per share. Treasuries began the day down across the board amid continued unwinding from last week’s rally. The USD was mixed, while energies and metals were higher across the board.
DOW futures traded up 105 point ahead of JUNE PCE data indicating a decrease in the MoM core number to 0.1% vs. 0.2% estimated. Post PCE and the slew of other releases (housing prices fell, sales were off, construction spending was down, etc) The knee-jerk on the data pulled the DOW off it’s highs but has not discouraged the bulls with the DOW up better than 90 after falling to the positive mid-30s. European equities strengthened with the FTSE up 154. and the DAX up 127 on the day. The dollar was bid behind some of the data but has returned to narrowly mixed into the afternoon.
The S&P/Case Schiller Index 20 came in at -2.8% vs. f/casted
- 2.9% ;- the 0.1% higher than expected number did not impress the markets as indices turned lower behind the data.
The Chicago Purchasing Manager came in lower than expected at 53.4 vs. 58.4 consensus indicating a continued weakness in production. While equity indices were unmoved by the data the 30-yr turned positive while the remainder of the curve stayed marginally lower.
Markets paid more notice to the unexpected increase in Consumer Confidence at 112.6 vs. the 105 consensus estimate. JUNE Construction Spending fell 0.3 vs. the consensus estimate of 0.2%. Indices got a boost from the former release as DOW futures climbed over 125 points. The 30 yr maintains a bid tone up about 8 to 10 ticks on the day as the shorter dates trade marginally lower or unchanged.
Crude is trading up $1.08 at $77.91, Unleaded is up 3 cents to 211.50, Heating Oil is up 2.5 cents to 209.07 and Natural Gas is lower by 13 cents to $6.36. Metals are higher across the board.