The DJIA: Bulls do not believe in corporate reporting anymore

U.S. corporate reporting season may not provide adequate support for Dow Jones Industrial Average

In brief: The DJIA started the rally, but the confidence buyers can unwind against the backdrop of bad data from the corporate sector statistics.

Dow Jones Industrial Average climbed to a mark of 10,125 points and falls. Dow index rose to +7.34 points (0.07%) from the beginning of trading the U.S. stock market today. At the same time, many conservative players prefer to understand how sound was Friday’s “strait” and would not hurry with their purchases until until they see positive points in the published statistics.

What is in this week’s economic calendar – may instead worsen the situation with the assumption of risk. Expected four reports on the real estate market (today 21-00 – Index of sentiment among builders of tomorrow – bookmark the new houses and the number of building permits issued on Thursday – the sale on the secondary housing market), which predict a further decline after the abolition of fiscal incentives. On the deceleration is expected to testify and the index of leading indicators (Thursday). Speakers at the Capitol Hill Chapter Federal Reserve Ben Bernanke on Wednesday-Thursday, probably have in the light of previously published data to change the tone of his speech, compared with the reports from the last meeting of the Fed.

In Europe also expect less positive figures: the index of sentiment among the business community of the institute IFO (Friday) and indexes PMI on Thursday. A key event will be the publication of stress tests 91 European banks. Regulators may not be able to achieve its objectives – to restore the confidence of the market, if the methodology is still not be enough “stress” to the same market may not be ready to scale need to replenish capital. Food for thought in this issue adds repayment of loans by banks on Tuesday the ECB. Corporate reporting season in the states can not provide adequate support. The onset of week will issue to the surface a lot of records, in particular its financial results represent such large companies as Apple, Goldman Sachs, Johnson & Johnson, Yahoo Inc, Coca-Cola, Morgan Stanley, AT & T, Microsoft. Despite his good character (he is considerably better than average results over the past fifteen years), market participants seem to have considered everything in quotes. More important, they now give the emerging statistics, which increases the risk of abrupt deceleration of the economy in the second half. So the bond market shows such a scenario – Friday yield 30-year US Treasuries fell below 3%, and on the “two-year” fell to new record low (0.5765%). Stock market in the United States concluded on Friday with losses in the 2.88% index S & P 500. In Asia on Monday for this reason, the mood remained cautious and subdued with the exception of the Chinese stock market (Shanghai composite +1.43%), in Japan today are celebrating the Day of the sea.

Ukrainian Globalist
2010-07-19 14:32, Economics.

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