|
Asian shares up on stimulus hopes; Europe and U.S. higher before Bernanke testimony.
International
Asia
● Asian stock indexes rose as investors gained hope that policymakers would support measures to stimulate the global economy.
● Japan’s Nikkei increased 0.35 percent; South Korea’s KOSPI advanced 0.23 percent; the Shanghai Composite jumped 0.62 percent; Hong Kong’s Hang Seng soared 1.75 percent; and the S&P/ASX 200 in Australia climbed 0.87 percent.
Europe
● European stock indexes advanced ahead of Fed Chairman Ben Bernanke’s testimony before the U.S. Congress and following data showing a six-month-low in German business confidence. Check for activity in the Vanguard MSCI Europe ETF (NYSEArca: VGK).
● Spain’s short-term debt costs have fallen since the government announced its most recent austerity package, but its long-term debt costs have not changed, signifying the market’s overall negative view on Spain moving forward. Twelve-month bond yields fell to 3.918 percent from 5.074 percent last month, but 10-year bond yields have hovered around 7 percent.
Domestic
● U.S. stock futures pointed higher as investors waited for the testimony from Ben Bernanke.
Earnings
Coca-Cola
● 2nd Quarter - 9:30 a.m. ET
● Expected EPS = $1.19
● ETF Movements
Consumer Staples Select Sector SPDR (NYSEArca: XLP)
Dow Jones U.S. Consumer Goods Index Fund (NYSEArca: IYK)
Intel
● 2nd Quarter - 5 p.m. ET
● Expected EPS = $0.52
● ETF Movements
Market Vectors Semiconductor ETF (NYSEArca: SMH)
Johnson & Johnson
● 2nd Quarter - 8:30 a.m. ET
● Expected EPS = $1.29
● ETF Movements
Health Care Select Sector SPDR (NYSEArca: XLV)
Dow Jones U.S. Health Care Index Fund (NYSEArca: IYH)
Yahoo
● 2nd Quarter - 5 p.m. ET
● Expected EPS = $0.20
● Expected ETF Movements
(The company isn’t heavily weighted in any ETF.)
Commodities
Gold and Silver Climbed
● Gold rose 0.22 percent, or $3.50, to $1592.88. Expect increases in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
● Silver advanced 0.18 percent, or $0.05, to $27.39. Expect the iShares Silver Trust (NYSEArca: SLV) to edge higher as well.
WTI and Brent Oil Elevated
● The August contract for WTI crude oil ascended 0.19 percent, or $0.17, to $88.60 per barrel.
● The September contract for Brent crude oil rose 0.84 percent, or $0.87, to $104.24 per barrel.
● Expect increases in both the United States Oil Fund (NYSEArca: USO) and in the United States Brent Oil Fund (NYSEArca: BNO).
Fund Flows
On Monday, July 16, 2012, the top ETF in nominal inflows was the SPDR S&P 500 (NYSEArca: SPY), with creations of $2.06 billion. The top ETF in nominal outflows was the SPDR Gold Trust (NYSEArca: GLD), with redemptions of $185.1 million.
ETF Launches
Two launches are happening today:
- Market Vectors Preferred Securities ex-Financials ETF (NYSEArca: PFXF), which steers clear of finance-related names and has an annual expense ratio of 0.40 percent
- Global X SuperIncome Preferred ETF (NYSEArca: SPFF), which will hold 50 high-yielding U.S.-based names. It has an annual expense ratio of 0.58 percent.
ETF Filings
- First Trust filed to market the First Trust High Yield Fund. It didn’t disclose the ticker symbol or the fund’s potential price in the filing.
Economic Calendar
Domestic
● ICSC-Goldman Store Sales - 7:45 a.m. ET
● Consumer Price Index - 8:30 a.m. ET
● Redbook - 8:55 a.m. ET
● Treasury International Capital - 9:00 a.m. ET
● Industrial Production - 9:15 a.m. ET
● Housing Market Index - 10:00 a.m. ET
● Ben Bernanke Speaks - 10:00 a.m. ET
Americas
● Canada
Manufacturing Sales - 8:30 a.m. ET
|
