FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

29Jul2016 Pre-Market Commentary: US GDP Falls Sharply, US Dollar Drops Precipitously, Gold And Crude Prices Remain Steady, Markets Expected To Open Lower

Written by Gary

US stock future indexes are down and slipping (SPY -0.2%) after the disappointing GDP report. The US GDP for the second quarter came in below what economists expected (-0.6%) and the US dollar dropped like a rock going below the 96 handle, while crude and gold remained steady. Merck topped analysts estimate this morning, while United Parcel matched its estimate.

Here is the current market situation from CNN Money

European markets are mixed today. The DAX is up 0.19% while the CAC 40 gains 0.09%. The FTSE 100 is off 0.18%.

What Is Moving the Markets

Here are the headlines moving the markets.

Exxon Mobil profit tumbles 59 percent in second quarter

HOUSTON (Reuters) - Exxon Mobil Corp, the world's largest publicly traded oil producer, said on Friday its quarterly profit tumbled 59 percent due to the slump in crude prices.

Yen, bond yields rise as Bank of Japan action underwhelms

LONDON (Reuters) - The yen jumped on Friday and Japanese government bond yields rose the most in eight years, lifting global sovereign borrowing costs, after the Bank of Japan's latest steps to boost growth and inflation fell short of investor expectations.

U.S. economy grows 1.2 percent in second quarter as inventories fall

WASHINGTON (Reuters) - The U.S. economy grew far less than expected in the second quarter as inventories fell for the first time since 2011, but a surge in consumer spending pointed to underlying strength.

Euro zone economic growth slows in quarter before Brexit

BRUSSELS (Reuters) - Economic growth in the euro zone slowed in the second quarter as uncertainty before the British vote to leave the European Union swirled, data showed on Friday, and economists said it could be a sign of future weaker growth.

Credit Suisse to create U.S. banking business for billionaire

(Reuters) - Credit Suisse Group AG , which exited its U.S. private wealth business last year, is building out a new investment banking group in the region to serve billionaires.

Oil rally to resume later this year, demand to offset glut: Reuters poll

(Reuters) - Oil analysts still expect a rise in the crude price this year, thanks to improving demand growth that should help offset any bearish headwinds from a stubborn supply surplus, a Reuters poll showed on Friday.

UPS quarterly profit climbs on revenue growth, cost cuts

CHICAGO (Reuters) - United Parcel Service Inc reported a higher quarterly net profit on Friday as revenue grew across all its business units and the company benefited from cost-cutting measures.

AB InBev clears China hurdle in SABMiller takeover deal

BRUSSELS/BEIJING (Reuters) - Brewer Anheuser-Busch InBev cleared a major hurdle toward its takeover of SABMiller with regulatory approval from China on Friday, leaving the acquisition's future in the hands of the British company's board.

Xerox's profit tops estimates on lower restructuring costs

(Reuters) - Xerox Corp reported a higher-than-expected quarterly profit as the printer and copier maker recorded lower restructuring charges.

ExxonMobil Tumbles To 2-Month Lows After Earnings Miss Worst Analyst Expectation

But, but, but the dividend yield, the oil recovery? ExxonMobil is down almost 3% in the pre-market to 2-month lows as it misses earnings expectations drastically (+41c vs 64c exp.. below the lowest expectation of +55c). Production levels also missed expectations as it appears the oil glut has trickled down to motor fuels, dragging refinery margins notably lower.



The market is not happy...

Is The BOJ About To Overhaul Its Entire QE Program: Wall Street's Take On The "Comprehensive Assessment" Clause

As previously reported, the yen soared more than 2.4% in an extremely volatile session, and the Nikkei plunged then soared, completing a stunning 1,000 point move, after BOJ's stimulus disappointed watchers and failed to match expectations, with just an increase in ETF purchases and a doubling of a dollar-lending program to $24b.

Crazy ~1000pt price swings in Nikkei futures last night (across all exchanges, this one from SGX) $NK_F

— Eric Scott Hunsader (@nanexllc) July 29, 2016

The summary

Kuroda expands ETF target purchases to 6t yen, and orders assessment of effectiveness of BOJ policy for Sept. meeting

The BOJ maintained policy interest rate at -0.1%

USD/JPY just under 2% to 103.30 after falling as low as 102.71. Yield on 10-year JGB jumps 9.5 bps to -0.18%, set for the steepest advance since 2013

USD/JPY 3-mo. basis swap climbs 5.6 bps to -65 bps

Macro accounts sold USD/JPY after a muted rally following BOJ's decision, with some clients already expecting BOJ to disappoint beforehand, trader says

For those confused by the unexpected letdown by the BOJ, here is a summary of Wall Street reactions to the central bank's announcement, courtesy of Bloomberg

Jun Kato (fund manager, Shinkin Asset Management)

BOJ's decision was at the minimum end of what investors were expecting, disappointing them

Decision leaves some room for further easing after seeing details of the economic stimulus package by PM Abe

USD/JPY will probably see profit-taking and move gradually toward 100

Sim Moh Siong (FX strategist, Bank of Singapore)

Frontrunning: July 29

Yen, bond yields rise as Bank of Japan action underwhelms (Reuters); Bank of Japan Takes Modest Easing Action (WSJ)

Hong Kong shares end lower as BOJ disappointment sweeps Asia (Reuters)

Accepting White House nomination, Clinton offers 'clear-eyed' vision (Reuters)

Two Conventions, Two Distinct World Views (WSJ)

Democrats Emphasize American Exceptionalism at Convention (BBG)

Clinton's Image Among Democrats at a Historic Low (WSJ)

The Number of Black C-Suite Executives Has Shrunk Under Obama (BBG)

Global funds cut share holdings to five-year lows as Brexit bites (Reuters)

Here's a Reason Baby Boomers Will Curb U.S. Growth this Decade (BBG)

Facebook May Owe Billions More in Taxes (WSJ)

Chinese Banks With Global Dreams Eye Middle East Mega Bonds (

Why Bank of Japan Dipped Into Bag of Small Tricks

The Bank of Japan underwhelmed overexcited expectations for yet another big bang of monetary stimulus. But the BOJ did promise some needed introspection.

Sony Gets to Next Level With PlayStation Help

Sony's videogame segment reported its best quarter ever. That could get another boost with the introduction of a virtual-reality gadget in October.

Past Mistakes Still Haunt Lender CIT

Midsize lender CIT is struggling to find the right size and business mix, even as it divests a profitable air leasing business.

Market Extra: Facebook just passed Buffett's Berkshire Hathaway in market value

Mark Zuckerberg has put Warren Buffett in his rearview mirror.

The Tell: Here's the key factor pushing oil prices to $35 a barrel

After enjoying a stellar run-up, crude futures head south again, treading into bear-market territory. However, the fundamentals of supply and demand may not be the key reason behind the recent bout of weakness in crude futures.

The Wall Street Journal: Sony posts surprise profit despite yen pressure

Sony reported a quarterly profit on strong PlayStation 4 sales.

Earnings Summary for Today

Earnings Calendar provided by

leading Stock Positions

Leading Stock Quotes powered by

Current Commodity Prices

Commodities are powered by

Current Currency Crosses

The Forex Quotes are powered by

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Live Market


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Rising Tide Does Not Lift All Ships
Comments on Feyerabend’s ‘Against Method’, Part II
News Blog
Docking A Huge Cruise Ship Is More Complicated Than You Think
New Seasonal Outlook Updates from NOAA and JAMSTEC - Let's Compare Them.
Infographic Of The Day: Driving Into A Battery Powered Future
Earthquake Risk - Location Matters
Investor Alert: Be On The Lookout For Investment Scams Related To Hurricane Matthew
Lost In Translation: Five Common English Phrases You May Be Using Incorrectly
The Size And Scope Of Samsung's Business
Immigration Is The Top Worry For Britons
People Killed By Russian Airstrikes In Syria
Have You Taken These 4 Simple Steps To Improve Your Trading?
14 October 2016: ECRI's WLI Growth Index Insignificantly Declines
Mom Breaks Down In Tears When Son With Autism Meets Service Dog
Rail Week Ending 15 October 2016 Paints A Negative Economic View
Investing Blog
FinTech Is Taking A Bite Out Of Banks
Options Early Assignment - Should You Worry?
Opinion Blog
US 2016 Election: Will US-China Relations Change
Prop. 51 Versus A State-Owned Bank: How California Can Save $10 Billion On A $9 Billion Loan
Precious Metals Blog
How Will The Election Outcome Impact Precious Metals?
Live Markets
21Oct2016 Market Close: Major US Indexes Close Flat On Low Volume, Crude Prices Resume Climb, US Dollar Stabilizes In Mid 98 Handle, Yes, Most Investors Are Worried Which Way This Market Will Go
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved