European shares begin the week mostly flat as the FTSEurofirst currently shows gains of .1% weighed down by profit warnings. Minor Rio Tinto dropped 1.7% after having their price targets downgraded by UBS and Nomura. Recently unstable Nokia lost 3.3% today with news that it has slashed prices of its
smartphone Lumia 900 in half in the US due to competition from rivals such as Apple. Investors remain skeptical and are patiently waiting US June retail sales numbers due out at 12:30 GMT.

Eurozone trade balance for May came in at 6.9B vs 4B expected and 3.7B from the prior month. The CPI for June came in plus 2.4% unchanged from May.

CLSA downgraded both Tyson foods and Smithfield foods today to underperform from buy and cut prices targets on the two food giants. Tyson is down in pre-trade while Smithfield is currently up.

Tata Motors, currently up 1.61%, is in talks with the Brazilian government to expand manufacturing capabilities to build Jaguar Land Rover Freelanders.

Commodities begin the week with a bleak outlook showing crude, natural gas, gold and silver all down at the moment.

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

Out today is the Retail Sales consensus at 8:30AM and Business Inventories at
10:00AM EST. For Retail Sales both May and April showed a decline and this is
expected again while Business Inventories is expecting another increase.

For the first time in four days the S&P 500 is up 1.65% at the open while 10-year
treasuries are down 1.59%. Oil is down as well at 0.59% and the dollar is up 0.33%.

What should you look for this week in earnings? Goldman Sachs tomorrow and
Morgan Stanley on Thursday. The spotlight has been put on them after JPM and
Wells Fargo both reported positive earnings last week.

Make sure to check out our webinar this Sunday, July 22nd and follow us on Twitter
@keeneonmarket!

S&P 500 futures rose a whopping 19 points to 1348.25, NASDAQ futures rose 35.50 points to 2573.25, and Dow Jones Industrial Average futures rose 190 points to 12692.00.

J.P. Morgan’s earnings release helped lift markets after reporting higher than expected earnings. They reported a net income of $4.96 billion or $1.21 a share and net revenue of $22.18 billion.

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

Construction stocks were up with the GDP news as were banks with CCB up .6% and ICBC up .8%. Underperforming were China’s power producers as power output was flat in June after rising 2.7% in May.

Europe is jumping on the slight rally in Asia with the FTSEurofirst up .4%. Basic resources and miners shares rose currently showing miner Petropavlovsk up 1.8% and Steelmaker Voestalpine up 1.3%. Italian Banks received an unexpected hit today as Moody’s downgraded Italy’s government bond two notches to Baa2, banks are down about 1%. Data also showed foreign deposits in Italian banks have dropped 20% on the year in April.

Moody’s also put London Automaker Peugeot on review for a downgrade battering their stocks down 8.8%.

Nokia is planning on closing 2 of its distribution centers in China as a part of its restructuring process, shares are up .5% pre-market.

JPMorgan was off to a great start after beating revenue predictions by 1B, however upon showing all of the write offs, wilting credit spreads, investment banking fees down 35%, and advisory fees down 41% the stock tanked from 2.1% to a current pre-market trade of -2%.

Commodities begin another session mixed with crude and gold up while silver and natural gas are down.

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

For the economy today there is the Producer Price Index announcement at 8:30AM
EST and the Consumer Sentiment consensus at 9:55AM EST. The PPI fell in April
and May, 0.2% and 0.1% respectively and is expected to continue that trend. The
consumer sentiment consensus is supposedly to yield a decline as well.

Turning to the stock market, the S&P 500 is down once again at the open at 0.50%.
Today though, 10-year treasuries are up 0.27% and so is oil at 0.88%. The dollar
joins that uptrend with an increase of 0.002 points.

On the brighter side, there is hope for the S&P 500, today China announced that
its growth has slowed to 7.6%, the same as analysts’ expectations. This confirmation of the state of China caused futures to rise as everyone was
assured that the situation was not worse than it seemed. Now that the stock futures
are rising, hopefully the S&P 500 will bounce back as well.

Make sure to join us for our FREE webinar this Sunday sponsored by Lido Isle and
follow us on Twitter @keeneonmarket!

In corporate news, Supervalu (SVU) plunged, losing nearly half of its value, after suspending its divident and withdrawing financial projections for the year for pricing pressure. Supervalu reported worse than expected quarterly results and is considering selling part o its heavy debt. 

Marriott International (MAR) dropped -6.44% after warning of weakenign expansion overseas. In Europe, the Stoxx Europe lost -1.1% despite an increase in May industrial production in the euro zone. The Hang Seng fell -2% and the euro fell versus the dollar. 

China had a similar day, with the Hang Seng falling for the third straight, however only off .2%. China’s imports sank to a six month low with an increase of 6.3% from a year ago, this is half of the anticipated 12.7% forecast in a Reuters poll. Samsonite, the world’s largest luggage maker, dropped 6%, and is at its lowest level in 6 months. China Yurun Food group dropped 6.6% following yesterday’s 10% dive, marking its lowest level in 6 years.

European shares rallied today on nothing more than yet another speculated bailout, the hope is that Germany’s constitutional court will give its blessing to another fund. The FTSEurofirst is up 1.2% on the thought. Banking stock are basking in the news. ASML stock, the previously mentioned Dutch company, is up 8.8% after Intel’s announcement. UK chipmaker and Intel competitor ARM Holdings dropped 1.8%. Italy shares some much needed good news in that Industrial production rose .8% for May compared to
the anticipated decline of .2%.

Pepsi, currently down in pre-trade, announced another move in opening a new food manufacturing plant in China.

Southwest airlines grabs an upgrade from Sterne Agee to buy from neutral after reading the carriers June numbers, they are up 1.1% in pre-market.

Commodities are starting mixed today with crude down, natural gas flat, and gold and silver both green today.

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