In the absence of US economic data releases,
In the absence of US economic data releases, the market found some follow-through from last Friday’s bullish market action but then faltered late in the session, particularly over the final hour of trading. An initial boost came from positive action seen on overseas markets, as well as strength in the euro. This strength had been catalyzed by an EU report indicating a higher than expected industrial output in Europe in April.
Later in the session, Moody’s downgraded Greece’s debt once again, this time from to A3 to Ba1, triggering some weakness in the US stock market. According to news released this weekend, Greece’s Prime Minister suggested his country would keep using the Euro, repeating his pledge to cut costs and ultimately return to growth.
Among energy issues, BP stock turned in one of the worst performances after announcing that the tally for the Gulf oil spill disaster now stands at $1.6 billion. The debate whether the oil giant should pay or forego its dividend payment continues to rage. Many UK pension funds hold BP stock; a suspension of the dividend would hit retirees; on the other hand, the fear is that BP might not be able to compensate those affected by the oil spill adequately AND pay the dividend. The US government has demanded BP suspend the dividend payment until BP has paid for cleanup and damage costs connected with the spill, now by far the worst in US history.
Key economic data for the week starting June 14, 2010. Numbers shown are consensus estimates (market anticipates this value) and prior value.
| Tuesday: | |
 |
8:30 AM NEW YORK FED (EMPIRE) (Jun): 20.0 / 19.1
IMPORT PRICE INDEX M/M (May): -1.2% / 0.9% 9:00 AM NET CAPITAL INFLOWS (TICS) (Apr): n.a. / $140.5B 10:00 AM NAHB HOUSING INDEX (Jun): 22 / 22 |
| Wednesday: | |
|
8:30 AM HOUSING STARTS SAAR (May): 650K / 672K
BUILDING PERMITS SAAR (May): 625K / 610K PPI M/M (May): -0.5% / -0.1% PPI M/M (core) (May): 0.1% / 0.2% PPI Y/Y (May): 4.8% / 5.5% PPI Y/Y (core) (May): 1.1% / 1.0% 9:15 AM INDUSTRIAL PRODUCTION M/M (May): 0.9% / 0.8% CAPACITY UTILIZATION (May): 74.5% / 73.7% |
| Thursday: | |
|
8:30 AM CPI M/M (May): -0.2% / -0.1%
CPI M/M (core) (May): 0.1% / 0.0% CPI Y/Y (May): 2.0% / 2.2% CPI Y/Y (core) (May): 0.9% / 0.9% CONTINUING CLAIMS Jun-05: n.a. / 4462K INITIAL CLAIMS Jun-12: 452K / 456K CURRENT ACCOUNT (Q1): -$120.0B / -$115.6B 10:00 AM PHILADELPHIA FED (Jun): 21.0 / 21.4 LEADING INDICATORS M/M (May): 0.4% / -0.1% |
