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.

The Hang Seng jumped 1.75% today besting Asia with gains in property developers, Insurers and
railways. China Life jumped 3.6% and China Pacific Life rose 3.5% in the Index. BoA selected Cheung
Kong, Henderson Land and New World development as their top real estate picks in China helping the
stocks to increase 4.2% and over 2% each respectively. China Railway Construction rose over 4%.

The FTSEurofirst is down .1% as investors wait patiently for Ben Bernanke’s move. Volumes are currently
at just 23% of their 90 day average. Alcatel-Lucent dropped over 12% after saying it will miss its 2012
profit guidance after a 40M Euro loss in the second quarter. Nokia had another day in the dumps losing
4.8% after being downgraded by Jefferies.

Ford, down again in pre-market, announced it will cut 15% of its workforce in Australia and reduce
production by 29%.

Commodities begin today with an upbeat outlook as gold, crude and natural gas all have gains while
silver is the one out down just over .6%.

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

As for the economy, store sales were announced this morning at 0% change rate and the CPI and Redbook are due out at 8:30AM and 8:55AM respectively. Also released today will be Industrial Production at 9:15AM and Housing Market at 10:00AM EST. The biggest announcement to watch out for today though is Ben Bernanke’s speech at 10:00AM EST. Bernanke is going to speak on the Senate’s semi-annual monetary policy. The S&P 500 is down once again at 0.23% while 10-year treasuries and oil are up 0.68% and 0.27%. The dollar also joins the upward trend at 0.03%. In the news today was the big Goldman Sachs announcement and while the company stated its net income fell 11% and only received $1.78 per share it beat the estimates of $1.17 by a long shot. Make sure to check out our webinar this Sunday, 22nd and follow us on Twitter, @keeneonmarket!

Meanwhile, the International Monetary Fund cut its global economic growth forecast by 0.1%, taking the total down to 3.5%.

In corporate news, Citigroup (C) edged up after reporting better than expected earnings. Retail sales fell for the third straight month in June, the Commerce Department reported, bucking economists’ projections for a slight increase and marking the first three-month streak of declines since 2008.

European markets were mixed, with the Stoxx Europe 600 up 0.2% and Spain’s IBEX-35 index down 2% as investors continued to worry about the euro zone’s ability to rescue troubled sovereign nations if the need arises.

Citi kicked off the day with stronger-than-expected earnings of $1, analysts expected 89 cents. C reported a 12% fall in net income to $2.9 billion. Revenue for the quarter was $18.6 billion, down from $18.8 last year.

Arch Coal fell 7.82% after BMO analysts cut their recommendation for the stock due to weak balance sheets.

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