Halftime Report 8.1.2012

However, the US manufacturing sector contracted for the second straight month as the global slowdown pulled down export orders. 

Adding to the alarm today, Knight Capital had a problem with their algorithmic based high frequency trading platforms. Knight Capital (KCG) experienced unusual price swings as their systems blasted buy and sell orders at around 100x the usual frequency. This news is breaking at the moment, but it appears that the NYSE and SEC will be reviewing trades in nearly 150 symbols executed between 9:30 and 10:15 ET. Following the 2010 flash crash, regulators have been examining the validity and effectiveness of high frequency trading systems. 

Across the pond, the Stoxx Europe rose 0.5%, as investors continue to shrug off poor manufacturing data across the continent. Crude oil futures have gained near 1% to $89 a barrel while gold futures lose -0.4%, to fall to $1,610 an ounce. 

In corporate news, MasterCard fell after the credit-card company topped earnings expectations after a previously disclosed pretax charge, but missed on revenue estimates. Avon Products lost ground after the beauty products seller reported second-quarter earnings and revenue that fell a bit shy of analyst estimates. Finally, Allstate, the largest publicly traded home-and-auto insurer in the U.S., climbed after the company raised rates and reported lower catastrophe losses.