It appears that earnings sentiment has changed after the first week of earnings. Markets were timid going into last week, and started to chart new positive territory after some better than expected earnings. Could rallies such as today’s be too impulsive? When is the Euro crisis going to be priced in?

David Cornes holds a degree in economics from the University of Montana.

Natural Gas futures rose with the country’s temperatures gaining 12.6 cents to $2.9220. WTI crude futures continued their rise, gaining a modest 15 cents to $89.37. Gold futures fell with EUR/USD futures, falling $16.30 to $1573.20 and 24 pipps to $1.2273 respectively.

David Cornes holds a degree in economics from the University of Montana.

The Hang Seng had another big slide today dropping 1.1%. Securities were among out-performers as
Haitong Securities gained 1.6% and Hong Yuan Securities jumped 6.1%. Chinese power companies,
unlike Japanese, had gains on the day after China’s regulatory commission decided to open the power
sector to private investors, Datang Power added 2.5%. The Index was held back by poor real estate data
showing home prices flat in June after 8 months of decline, to end hopes of policy support. Poly Real
Estate dropped 4.9% and China Vanke lost 3.8%.

Strong earnings reports are right now enough for Europe to begin the day up ignoring the Asian markets.
The FTSE is currently up .2% after positive results from Europe’s banks as Credit Suisse adds 5.5% and
Nordea adds 2.2%. US Firms Goldman Sachs and Coca-Cola’s strong numbers report overnight also
helped prop the European market.

European Construction output comes in at +.1% for May compared to the previous month of -3.7%.

UK unemployment showed a nine-month low of 8.1% with the Olympics helping to create jobs.

Commodities are starting out the day with Gold, silver, natural gas and crude all flat at the moment, the
biggest mover being gold down .33%.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu

The S&P 500 is back up today at 0.74% while 10-year treasuries are both down 1.97% and 0.28% respectively. The dollar still holds strong at 0.30% increase. Bank of America announced their earnings today and beat the streets expectations. The bank said it made 19 cents per share second quarter. The profits are partly due to decreasing reserves to cover bad loans, the bank expects more customers to repay loans on time. Make sure to check out our Webinar this Sunday, 22nd and follow us on Twitter @keeneonmarket!

In corporate news, Coca Cola (KO) advanced 1.58% after the beverage giant reported second-quarter earnings and revenue that topped analysts’ estimates. Goldman Sachs (GS gained 1.1% after the investment bank reported second-quarter earnings and revenue that exceeded expectations. Johnson & Johnson (JNJ) rose 0.9% even after the drug and consumer-products company reported second-quarter revenue that fell short of analysts’ expectations and lowered its 2012 earnings outlook. Yahoo (YHOO) fell 0.1% after the internet giant named Google executive Marissa Mayer as Chief Executive on Tuesday afternoon.

In U.S. economic news, consumer prices were flat in June, in line with expectations, as energy costs continued to fall. Investors have said the Fed might be less hesitant to roll out additional stimulus measures if inflation is lower. Industrial production picked up in June, rising slightly more than expectations, according to the Federal Reserve. Meanwhile, capacity utilization increased slightly but fell short of expectations.

Finally, Facebook (FB) dropped 2.9%, adding to Monday’s 8.1% slide, ahead of next week’s quarterly earnings report for the social-media company, its first ever as a publicly traded company.