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Global markets spike for second-straight day on ECB commitment to protect the eurozone.
International
Asia
● Asian stock indexes surged today as investors were less anxious about the state of the euro after the ECB’s president said he would commit to preserving the euro. Markets in Asia were also lifted by Samsung’s record profit.
● The Nikkei climbed 1.46 percent; KOSPI soared 2.62 percent; Shanghai Composite rose 0.13 percent; Hang Seng elevated 2.02 percent; S&P/ASX 200 grew 1.5 percent.
Europe
● European stock indexes climbed for the second-straight day on the ECB’s pledge to lower borrowing costs in Spain and Italy despite German opposition to bond purchasing. Be aware of movements in the Vanguard MSCI Europe ETF (NYSEArca: VGK).
Domestic
● U.S. stock futures rose ahead of a report on U.S. second-quarter growth and on ECB commitments to purchase government debt in the eurozone.
● Economists predict that U.S. GDP grew about 1.4 percent in this quarter, less than the 1.9 percent growth in the first quarter. They are predicting a drop in growth due mainly to flagging consumer spending.
Earnings
Chevron
● 2nd Quarter - 11 a.m. ET
● Expected EPS = $3.23
● ETF Movements
iShares Dow Jones U.S. Energy Sector Index Fund (NYSEArca: IYE)
Vanguard Energy ETF (NYSEArca: VDE)
Energy Select Sector SPDR Fund (NYSEArca: XLE)
Merck
● 2nd Quarter - 8 a.m. ET
● Expected EPS = $1.01
● ETF Movements
Health Care Select Sector SPDR Fund (NYSEArca: XLV)
iShares Dow Jones U.S. Pharmaceutical Index Fund (NYSEArca: IHE)
Commodities
All commodities news is as of 7:15 a.m. ET.
Gold and Silver Advanced
● Gold ascended 0.66 percent, or $10.60, to $1626.38. Expect increases in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
● Silver meanwhile rose 0.69 percent, or $0.19, to $27.73. Expect growth in the iShares Silver Trust (NYSEArca: SLV).
WTI and Brent Oil Climbed
● The September contract for WTI crude oil rose 0.46 percent, or $0.41, to $89.80 per barrel.
● The September contract for Brent crude oil gained 0.63 percent, or $0.66, to $105.92 per barrel.
● Expect expansion in both the United States Oil Fund (NYSEArca: USO) and in the United States Brent Oil Fund (NYSEArca: BNO).
Fund Flows
On Thursday, July 26, 2012, the top ETF in nominal inflows was the SPDR S&P 500 (NYSEArca: SPY), with creations of $578.6 million. The top ETF in nominal outflows was the PowerShares QQQ (NasdaqGM: QQQ), with redemptions of $456.4 million.
ETF Launches
None as of yet today
ETF Filings
None as of yet today
Economic Calendar
Domestic
● GDP - 8:30 a.m. ET
● Consumer Sentiment - 9:55 a.m. ET
Europe
● Germany
CPI - TBD
● Italy
ISAE Manufacturing and Mining Survey - 4:00 a.m. ET |
