MARKETS SNAPSHOT FOR 16/07/12
Tuesday, 17 July 2012 | 00:00
DJ30 PointChange: -49.88 Level: 12727.21 NASDAQ PointChange: -11.53 Level: 2896.94 SP500 PointChange: -3.14 Level: 1353.64 NASDAQ-Adv:879 Dec: 1603 NYSE-Adv:1359 Dec: 1670
[BRIEFING.COM] Stocks finished the day with modest losses after disappointing data provoked selling. This morning's retail sales numbers fell short of estimates while business inventories registered a larger than expected build. The data was not all bad as Empire Manufacturing topped forecasts.
Citigroup (C 26.81, +0.16) gained 0.6% following its mixed quarterly results. The company announced earnings per share of $0.95 which topped the Capital IQ Consensus Estimate of $0.90, but revenues were light at $18.64 billion. Elsewhere on the earnings front, Woodward (WWD 34.54, -1.51 -2.13) guided third quarter revenue and earnings per share below consensus. The industrial company also lowered its full-year 2012 outlook. On the other hand, j2 Global (JCOM 28.47, +2.24) rallied 8.5% after it guided second quarter earnings per share and revenue above consensus.
The SPDR S&P Retail ETF (XRT 58.87, -0.35) lagged after June retail sales came in below expectations.
Gilead Sciences (GILD 51.94, +0.77) announced the FDA approval of Truvada, an oral drug for reducing the risk of acquiring HIV.
Shares of Par Pharmaceutical (PRX 50.00, +13.42) rose on news the company will be taken private at $50.00 per share in cash which is a 37% over Friday’s closing price. The transaction values the company at $1.9 billion. Today’s gains have the stock trading at levels last seen in April 2004.
Visa (V 127.15, +3.06) and Mastercard (MA 436.89, +7.29) both added close to 1.7% after settling merchant litigation. The settlement removes an overhang with the two companies on the hook for a $6.6 billion settlement. Visa’s share represents approximately $4.4 billion while Mastercard will pay roughly $2.2 billion.
The grain complex climbed as the worst drought since 1988 continues put upward pressure on prices. Teucrium Corn (CORN 49.85, +1.82) and iPath Dow Jones-UBS Gains Sub-Index (JJG 61.01, +2.48) once again saw outperformance with both holding gains of close to 4.0%. The two names are both up close to 40% over the past month.
Treasuries ended at post-data lows as traders moved out of the complex amid a rebound in risk assets. This morning’s buying dropped the 5-yr yield to a record low 0.577% while the 10-yr yield narrowly escaped a record low print as it hit 1.442% (1.440% record low). Slight flattening of the yield curve saw the 2-10-yr spread narrow to 123.5 bps.
Tuesday will see CPI and core CPI released at 8:30 am ET, net long-term TIC flows cross the wires at 9 am ET, industrial production and capacity utilization announced at 9:15 am ET, and the NAHB Housing Market Index at 10 am ET. Also of note is Chairman Bernanke’s semi-annual “Monetary Policy Report to the Congress” in front of the Senate Banking Committee at 10 am ET.
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