When we are busy with our  daily work in the new week, our experts also begin their weekly works to analyzed the futures markets to make sure that traders and have necessary information supporting their trading. Because of the limited time, this week we will check out the two typical market reviews to see how they work.

First of all, we will stop by the fiancial market since changes from here usually lead to others’ changes. It was reported that banks won’t have to make adjustments until 2019 on the amount of money they have to hold, which is used just in case there are large losses. The credit card industry, mortgages, and other loans will also see unique changes. Do you think that this is a good news or not? Shouldn’t this be done in a year or less? Loans may be more stringent and this may cause more harm than good for the consumers. The reserves will be 8.5% of the balance sheet to meet the requirements. The news may cause different feelings to people with different purposes.

There is a boost in the market this morning because fo the wews of growth in China and bank reform. This may shift trades from treasuries back into stocks. View back the past 2 weeks, the market has risen with hefty gains and seems to have the same attitude today. The bank stocks may gain steam today because companies have time to adjust. The Street takes this banking news as positive since there is a less of a chance that banks can topple the economy, like they did over the past few years.

Go next to the S&P! The S&P was up 9.7 to 1113.80 and the DOW was up 78 points to 10471.00. It can go higher if it goes past 1117.00 as there is resistance at this level. This level is important, especially when economic data comes in. 1030.00 level could be the next target.

For the long term changes we need to care, but first of all, in term of finance, we also cannot neglect changes in the currency exchange rates. Market keep running and we keep chasing.

End of the road of financials, we will turn to go along with the energy road. Let’s see the pipeline leak that the market saw on Thursday is still in effect here as Crude Oil gets bid for above $77 as the structure of the Oil curve rallies with the wti spreads gaining another 20 cents in each of the first two spreads over the weekend.  During the time of Oct/Nov and Nov/Dec both trading -70.  The Dec10/Dec11 contract is now at -470, as this has rallied +160 points in last week. Around the market, we can see traders are still buying this oil as this key pipeline is still shutdown.  To compare, the S&P is above 1100 and the Euro/USD is above $1.28 as the oil market continues to rally.  Look to see Oil try and test the $78.50 key resistance level this week with indicators pointing to a rally once again.

Natural Gas is now starting to look comfortable at the $3.70-$3.80 level. This may be a good news to traders in the floor. Our market analyst is looking at long opportunities in this market as he believes it will start to see a swift move to the upside.  That Calls in Nov look very attractive right now leads him to think that this will be a great play as this market starts to make its way up.

You have just review how the financials and energies markets will be going on this week. You have noted down key points and may have your own decisions or plans in the next few days. Besides these two reviews, make sure you will not miss the other futures reviews and the daily futures price reports as usuale advised. Markets are changeable and interactive, don’t get any mistake!

- About the Author: I’m a trader in futures trading floor. I’m always eager to learn and share. Reading and searching are my hobbies. Article Source

Overnight Developments

• European stocks are lower with the European DJ Stoxx 50 down -0.03% and Dec S&Ps down -2.60 points. The euro retreated from a 1-week high against the dollar and Treasuries strengthened after German investor confidence tumbled. The Sep German ZEW economic sentiment survey fell for the fifth consecutive month and by a larger-than-expected -18.3 to a 19-month low of -4.3 as budget cuts across the Euro-Zone and slowing global growth clouded the outlook for Europe’s largest economy. Declines in utility stocks also pressured stock prices with E.ON sliding 3.0% after Germany’s biggest utility was downgraded to "hold" from "buy" at UniCredit SpA, which cited uncertainty on nuclear power plant extensions. Aug UK consumer prices unexpectedly rose +3.1% y/y, the same pace as July, and the sixth straight month prices have exceeded the government’s 3.0% limit as higher costs from airfare to food stoked price pressures.
• The Asian markets today closed mixed with Japan down -0.24%, Hong Kong +0.17%, China +0.09%, Taiwan +0.51%, Australia +0.25%, Singapore -0.59%, South Korea -0.15%, India +0.72%. Japanese stocks fell as the yen climbed to a fresh 15-year high against the dollar after Japanese Prime Minister Kan beat his rival Ozawa in a party vote today, reducing the likelihood the government will intervene in the foreign-exchange markets to weaken the yen. China’s yuan gained after the PBOC fixed the reference rate at 6.7378 per dollar, the highest since a peg against the dollar was scrapped in July 2005, on speculation the Chinese government will allow faster appreciation of the yuan to head off US trade sanctions. The action by the European Commission to raise its Euro-Zone GDP estimate yesterday for this year to 1.7% from 0.9% gave support to Asian equity markets on optimism that demand for Asian exports will remain strong. Asian bank stocks rallied for a second day after regulato rs agreed to give banks as long as 8 years to comply with new capital requirements and after Zhu Min, former deputy governor of the PBOC and current vice president of Bank of China Ltd. said that banks in Asia have high capital ratios and will be able to avoid the degree of fundraising needed elsewhere to meet the new international standards.

Overnight U.S. Stock News

• Dec S&Ps this morning are down -2.60 points. The stock market yesterday gapped higher and traded in positive territory the entire day and finished moderately higher (Dow +0.78%, S&P 500 +1.11%, Nasdaq Composite +1.93%). The Nasdaq rose to a 2-1/2 month high and the S&P 500 and the Dow both rallied to 1-month highs. Bullish factors included (1) carry-over support from stronger-than-expected Chinese economic data and comments from China’s Premier Wen Jiabao who said that China’s economy is in "good shape," which eases concern that the global economy will lapse back into recession, (2) a rally in bank stocks after the Basel Committee on Banking Supervision reached a compromise that doubles capital requirements for banks while giving them until 2019 to meet the buffer requirements to withstand future crisis, (3) carry-over strength from a rally in European equity markets after the European Commission raised its economic growth forecast for the Eur o-Zone this year to 1.7% instead of a previously projected 0.9%, (4) gains in raw-materials and energy producers as the slumping dollar pushed most commodities higher, with crude oil climbing to a 1-month high, (5) strength in chipmakers after research firm Gartner Inc. predicted that semiconductor equipment spending will double in 2010, (6) the smaller-than-expected US budget deficit in Aug as the economic recovery generated more tax revenue for the Treasury (-$90.5 billion versus expectations of -$100.0 billion), and (7) the prediction from CLSA Ltd. that US stock prices are "screamingly cheap" and will rally at least 30% in the next 12 months as the cheapest valuations in decades lure investors.
• Bearish factors included (1) the statement from IMF Managing Director Strauss-Kahn that the global economy may not generate much employment growth in coming years, and (2) the prediction from well-known bank analyst Richard Bove that legislators who don’t understand the banking industry and a sense of "mass hysteria" led to the passage of financial-reform law that will hurt US consumers.
• Campbell Soup (CPB) fell 2.3% in European trading after Goldman Sachs cut the stock to "sell" from "neutral" as they downgraded the packaged foods industry to "cautious" from "neutral," citing a mixed outlook for US sales, margin risks and valuations.

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Overnight Developments

• European stocks are higher with the European DJ Stoxx 50 up +0.86% and Dec S&Ps are up +9.40 points, both at 1-month highs. The dollar and Treasuries are weaker while most commodities rallied with crude oil at a 1-month high as a larger-than-expected increase in Aug China industrial production lifted mining stocks and raw material producers and boosted optimism in the global recovery. The European Commission raised its economic growth forecast for the Euro-Zone this year to 1.7% instead of a previously projected 0.9%, and said the economy may slow to a more "moderate" expansion in the second half. Bank stocks and the euro currency strengthened after the Basel Committee on Banking Supervision reached a compromise that more than doubles capital requirements for the world’s banks and gives them as long as 8 years to comply with the higher capital requirements intended to prevent future crisis. Credit Agricole jumped 6.7%, Societe Generale climbed 4.6% and Commerzbank advanced 2.0%. Deutsche Postbank AG slipped 6.8% after Deutsche Bank AG said it plans to raise at least 9.8 billion euros in its biggest-ever share sale to take over Postbank and meet stricter capital rules. Deutsche Bank expects to offer between 24 euros and 25 euros a share in cash to Postbank shareholders to increase its 29.95% stake in the lender.
• The Asian markets today closed higher with Japan up +0.89%, Hong Kong +1.89%, China +1.01%, Taiwan +2.55%, Australia +1.20%, Singapore +1.47%, South Korea +1.03%, India +2.17%. Strong economic data from China lifted Asian stocks and eased concern about a slowdown in the economic recovery. China’s Aug industrial production increased 13.9% y/y, more than market expectations of 13.0% y/y and Aug China retail sales rose +18.4% y/y. The PBOC reported Aug new loans of 545.2 billion yuan ($80 billion) and a 19.2% y/y increase in M2, the broadest measure of money supply. Both numbers were stronger than expected with the increase in M2 growth the first in 9 months. Aug China consumer prices rose 3.5% y/y, their biggest increase in 22 months due to a rise in food costs.

Today’s U.S. Earnings Reports

Earnings reports (confirmed releases, sorted by mkt cap) FUL-HB Fuller (BEST earnings consensus $0.45), LRN-K12 Inc. (-0.07), PCYC-Pharmacyclics (-0.07), PMFG-PMFG Inc. (0.10), MTRX-Matrix Service (0.10), VALV-Shengkai Innovations (0.16), GCOM-Globecomm Systems (0.17).

Day Trader: Click here to ready the complete Morning Call.

Overnight Developments

• European stocks are weaker with the European DJ Stoxx 50 down -1.01% and Sep S&Ps down -4.20 points. The dollar and most commodities are lower while Treasuries and bunds are higher. European bank stocks are leading share prices lower with Raiffeisen International Bank Holding AG down 1.8% after the Austrian bank that operates in 17 former communist countries in eastern Europe reported Q2 net income of 71 million euros ($89.75 million), below analysts’ estimates of 99 million-euros. Eurobank Ergasias SA fell 3.1% as Greece’s second-largest lender said first-half profit fell after loan losses and taxes increased. Aug Euro-Zone inflation slowed to 1.6% y/y from 1.7% y/y in July, while the Aug Euro-Zone unemployment rate held at 10.0% for a fifth month, the highest in 12 years. In Germany, the number of people out of work declined -17,000 in Aug, its 14th consecutive month of declines, as the unemployment rate held steady at 7.6%. The German economy is leading Europe’s recovery as exports and investment surge, and may limit any slowdown in the Euro-Zone.
• The Asian markets today closed lower with Japan down -3.55%, Hong Kong -0.97%, China -0.41%, Taiwan -1.61%, Singapore -0.23%, South Korea -1.23%, India -0.34%. Asian stocks fell after slower-than-estimated growth in US personal income increased concern the economic recovery may falter. Japanese stocks tumbled despite an unexpected +0.3% m/m increase in Jul Japan industrial production and the larger-than-expected +0.7% m/m increase in Jul Japan retail sales. Stock prices in Japan remain under pressure on concern that the steps taken Monday by the BOJ and the government to halt the yen’s gain and boost economic growth will be insufficient. Q2 GDP in India expanded 8.8% annualized, its fastest pace in 2-1/2 years, which increases pressure on the Reserve Bank of India (RBI) to extend its recent string of interest rate hikes. The markets now expect another 25 bp rate hike by the RBI at its next meeting Sep 16 to cool inflation as India’s wholesale-price inflation has rem ained stubbornly around 10% since Jan.

Overnight U.S. Stock News

• Sep S&Ps this morning are down -4.20 points. The stock market yesterday opened lower and sold-off steadily the entire day and finished on its low (Dow -1.39%, S&P 500 -1.47%, Nasdaq Composite -1.56%). Bearish factors included (1) comments from the BOJ after its emergency meeting in which it expanded its bank loan program and said that "uncertainty" regarding the American economy is growing, (2) the weaker-than-expected Jul US personal income which fuels concern the economic rebound may slow further (+0.2% versus expectations of +0.3%), (3) the action by Morgan Stanley to cut its second-half GDP estimate for the US to between 2.0% and 2.5% from an earlier estimate of 3.0% to 3.5%, and (4) the action by Barclays Capital to reduce its year-end S&P 500 forecast to 1,120 from an earlier forecast of 1,220, saying "the market-implied probability of recession increases."
• Bullish factors included (1) carry-over strength from an early rally in European equities after Aug Euro-Zone economic confidence rose more-than-expected to its highest level in 2-1/2 years along with a rally in Asian shares after the BOJ expanded its bank-loan program, (2) the stronger-than-expected Jul US personal spending (+0.4% versus expectations of +0.3%), and (3) increased M&A activity after Sanofi-Aventis bid $18.5 billion for Genzyme, Intel agreed to buy Infineon Technologie’s wireless unit for $1.4 billion and 3M said it agreed to buy Cogent for $943 million.
• Ford Motor (F) slipped 2.1% in European trading on speculation that tomorrow’s US auto sales results will show that Aug sales this year were the slowest since 1982 as model-year closeout deals failed to entice customers.

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Overnight Developments

• European stocks are stronger with the European DJ Stoxx 50 up +0.37% and Sep S&Ps are up +7.00 points. The dollar index and Treasuries are weaker while most commodities are higher, even after German investor confidence dropped to a 16-month low. The Aug German ZEW economic sentiment survey fell a more-than-expected -7.2 to 14.0, its fourth straight decline and its lowest level in 16 months, which suggests a weaker growth outlook going forward. In the UK, July consumer prices rose +3.1% y/y, which is above the government’s 3.0% limit and forced BOE Governor King to write his third public letter this year to explain how he will bring prices under control. European stocks received a boost after Carlsberg, the biggest brewer in Russia, climbed 2.1% after it reported Q2 profit of 2.63 billion kroner, beating analysts’ estimates of 2.05 billion-kroner and after the company raised its full-year profit forecast due to the effect of a stronger ruble and an improvement in the Russian market. Weinerberger surged 7.2% after the world’s largest brickmaker reported Q2 net income of 20.6 million euros ($26 million), compared with a 151.5 million euro loss the year before after the company cut costs and the building material market began to recover.
• The Asian markets today closed mixed with Japan down -0.38%, Hong Kong +0.12%, China +0.69%, Taiwan -0.13%, Australia +0.87%, Singapore -0.35%, South Korea +0.64%, India -0.01%. Japanese bank stocks fell and helped to lead the overall market lower after Deutsche Bank downgraded the industry to "marketweight" from "overweight," citing "a lack of confidence that the strong Q1 performance will continue in subsequent quarters." A report from the Nikkei newspaper said that the Japanese government might extend the eco-point incentive program for purchases of energy-saving devices in an attempt to extend the economic recovery after Monday’s release of Japan Q2 GDP data showed the Japanese economy barely grew last quarter. The central banks of Australia and South Korea said the world economic outlook has become clouded, which may slow their pace of future interest rate increases. The minutes of the Aug 3 RBA policy meeting released today said th ere is "more uncertainty over the global outlook than there had been earlier in the year," while BOK Governor Kim Choong Soo said in a speech today that markets "may prove turbulent in the future."

Overnight U.S. Stock News

• Sep S&Ps this morning are up +7.00 points. The stock market yesterday erased early losses and finished the day mixed (Dow -0.01%, S&P 500 +0.01%, Nasdaq Composite +0.39%). The S&P 500, the Dow and the Nasdaq all fell to 3-week lows but recovered to finish mixed to higher. Bullish factors included (1) strength in raw materials and commodity producers after the dollar fell and boosted most commodities along Goldman Sachs’s reiteration of its "overweight" rating on commodities, and (2) the plunge in the yield on the 10-year T-note to a 17-month low of 2.57%, which should benefit consumers and businesses.
• Bearish factors included (1) carry-over weakness from a fall in Japanese and European stocks on concern the global economic recovery is faltering after Q2 Japan GDP came in weaker-than-expected (+0.4% annualized versus expectations of +2.3% annualized), (2) the weaker-than-expected Aug Empire manufacturing index (+2.0 to 7.1 versus expectations of +3.2 to 8.3), (3) a slump in homebuilders after the unexpected decline in the Aug NAHB housing market index to a 17-month low (-1 to 13 versus expectations of +1 to 15), and (4) the decline in most education stocks after data from the US Department of Education signaled that for-profit college aid may be imperiled because loan payback rates are insufficient.
• Potash Corp. of Saskatchewan (POT) surged 13% in pre-market trading after the world’s largest fertilizer producer rejected an unsolicited takeover proposal from BHP Billiton worth $130 a share in cash.

Day Trader: Click here to read the complete Morning Call.

Overnight Developments

• European stocks are weaker with the European Stoxx down -0.45% and Sep S&Ps down -2.20 points. The euro weakened and German bunds rallied after the yield premium investors demand to hold Greek 10-year bonds instead of benchmark German bunds of similar maturity widened to over 800 bp for the first time since Jun 28. European stocks weakened and failed to hold an early rally amid renewed concern that the region’s sovereign debt crisis will curb economic growth in the second half of 2010. Bank stocks led the downturn with HSBC, Europe’s largest bank, down 1.6%, and Santander, the biggest Spanish bank, down 1.9%. Retail stocks also moved lower led by a 8% slump in Delhaize Group after the owner of Food Lion supermarkets cut its full-year profit forecast after a decline in US same-store sales accelerated. European stocks had rallied earlier after strong GDP reports within the region. Q2 German GDP expanded by a more-than-expected +2.2% q/q, the fastest pace sinc e the country’s reunification two decades ago. Combined with a larger-than-expected +0.6% q/q gain in Q2 French GDP helped Q2 Euro-Zone GDP to increase +1.0% q/q, its fastest pace of expansion in 4 years.
• The Asian markets today closed mostly higher with Japan up +0.44%, Hong Kong -0.16%, China +1.39%, Taiwan +0.79%, Australia +1.33%, Singapore +0.44%, South Korea +1.36%, India +0.52%. Strong earnings reports throughout Asia helped most Asian stock markets to close higher today. Wintek surged 6.9% after the maker of parts for Apple’s iPad reported Q2 net income of $9.81 million, its first profit after 9 quarters of losses, while Genting Singapore soared 14% after the casino operator reported Q2 profit of $291 million compared with a loss a year earlier, which prompted Credit Suisse Group AG, Citigroup and Morgan Stanley to raise their recommendations on the stock. Korean Air jumped 2.8% after the country’s largest carrier reported record operating profit as cargo sales climbed 86% to 1 trillion won. Minutes of the BOJ policy meeting from Jul 14-15 released today showed that some policy makers indicated they were worried about the yen’s advance, a sign they see the cur rency’s threat to exporters as a bigger economic risk than fallout from Europe’s sovereign-debt crisis. Concern about the rising yen may indicate the BOJ is prepared to curb currency gains, either through additional easing measures or currency intervention, to protect Japan’s recovery.

Overnight U.S. Stock News

• Sep S&Ps this morning are down -2.20 points. The stock market yesterday opened on its low and recovered most of its losses into late morning but then faded the rest of the day and finished moderately lower (Dow -0.57%, S&P 500 -0.54%, Nasdaq Composite -0.83%). All of the indexes fell to 3-week lows. Bearish factors included (1) carry-over weakness from a drop in European stocks on signs that the European economy is weakening after Jun Euro-Zone industrial production unexpectedly declined, (2) the unexpected increase in weekly initial unemployment claims which rose to a 5-1/2 month high and adds to evidence that the US economic recovery may falter (+2,000 to 484,000 versus expectations of -14,000 to 465,000), and (3) weakness in technology stocks after Cisco Systems plunged when it forecast weaker-than-expected Q3 sales and after BMO Capital Markets reduced its ratings on semiconductor companies to "underperform" from "market perform," c iting rising inventory and weakening demand.
• Bullish factors included (1) a rally in fertilizer companies after the USDA estimated that global wheat production will fall to a 3-year low, and (2) the prediction from PIMCO that the Fed’s recent decision to reinvest principal payments on mortgage holdings into Treasuries should eventually boost demand for riskier assets, including stocks.
• Intel (INTC) slipped 1.2% in European trading after a report surfaced that Nvidia has a team of engineers developing chips that could be used by computer makers instead of Intel, according to people who declined to be identified because the project hasn’t been made public.

Day Trader: Click here to read the complete Morning Call.

Overnight Developments

• European stocks are weaker with the European Stoxx down -1.15% and Sep S&Ps down -15.10 points. The drop in US stocks that began after the FOMC meeting yesterday afternoon accelerated in overnight trade with Sep S&Ps falling to a 1-week low as the Fed signaled the recovery is decelerating. Treasuries around the globe gained, with the US 2-year T-note yield dropping to a record low of 0.4892%, while the yield on the 10-year German bund slipped to a record low of 2.458%. The dollar index rose to a 1-1/2 week high and commodities slumped with copper declining to a 1-week low. Adding to pressure on European stocks was the Bank of England’s quarterly inflation report in which the BOE cut its economic growth estimate for England to a 3.0% annual pace instead of the 3.6% rate forecast in May and said that inflation will be at about 1.5% in 2012, lower than its 2.0% goal, which signals the economy may need more emergency stimulus. July UK nationwide consumer con fidence tumbled a more-than-expected 7 points to a 15-month low of 56, which aided a drop in the British pound to a 1-1/2 week low against the dollar.
• The Asian markets today closed mostly lower with Japan down -2.70%, Hong Kong -0.83%, China +0.62%, Taiwan -1.02%, Australia -1.88%, Singapore -1.17%, South Korea -1.32%, India -0.82%. Japan’s Nikkei 225 Stock Index fell to a 2-1/2 week low on economic growth concerns after Jun Japan machine orders, an indicator of business investment in 3 to 6 months, rose +1.6% m/m, far less than the expected +5.4% m/m increase. Japan’s exporters also closed lower after the yen surged to a 15-year high against the dollar as a stronger yen reduces the value of overseas income at Japanese companies when converted into their home currency. Chinese bank stocks weakened after China’s banking regulator ordered banks to transfer off-balance-sheet loans onto their books and make provisions for those that may default. Adding to evidence that China’s economy is cooling, China’s July industrial output rose +13.4% y/y, the least in 11 months, while new loans in July were 532.8 billion yuan, be low expectations of 600 billion yuan. China’s July inflation quickened to 3.3% y/y, the fastest pace in 21 months, boosted by a low year-earlier base for comparison and rising food costs.

Overnight U.S. Stock News

• Sep S&Ps this morning are down -15.10 points. The stock market yesterday traded in negative territory throughout the day, although a late-day rally helped it to close well above its worst levels (Dow -0.51%, S&P 500 -0.60%, Nasdaq Composite -1.24%). Bearish factors included (1) carry-over weakness from a fall in Chinese stocks on evidence that China’s economic growth is slowing after July China imports rose at their slowest pace of growth in 9 months, while July property prices in 70 major Chinese cities posted their smallest increase in 6 months, (2) the unexpected decline in Q2 nonfarm productivity which fell for the first time in over 2 years (-0.9% versus expectations of +0.2%), (3) weakness in materials and energy producers after the dollar index rallied to a 1-week high and the prices of most commodities tumbled, and (4) the fall in technology stocks led by a slump in semiconductor shares after Barclays Plc and R.W. Baird & Co. reduced their rating s on Intel, the world’s largest semiconductor manufacturer, because of weakening orders for personal computer components.
• Bullish factors included (1) strength in US phone companies after Wells Fargo upgraded the sector to “marketweight” from “underweight,” saying that US telephone stocks are increasingly appealing as a haven from slowing growth in the economy and because the industry pays out historically high dividends relative to the S&P 500 Index and that the industry “appears to be on the verge of a turnaround,” and (2) the post FOMC statement in which the Fed said they will reinvest principal payments on mortgage holdings into long-term Treasury securities as they expand their quantitative easing in an attempt to bolster economic growth and keep the US economy from lapsing back into recession.
• Cree (CRE) slumped 9.8% in European trading after the company forecast Q1 sales of $280 million at most, below analysts’ estimates of $284.3 million.

A123 Systems (AONE) dropped 4.6% in European trading after the company reported a Q2 loss of 33 cents a share, wider than the 27-cent loss estimated by analysts.

Day Trader: Click here to read the complete Morning Call 

Overnight U.S. Stock News

• Sep S&Ps this morning are down -15.10 points. The stock market yesterday traded in negative territory throughout the day, although a late-day rally helped it to close well above its worst levels (Dow -0.51%, S&P 500 -0.60%, Nasdaq Composite -1.24%). Bearish factors included (1) carry-over weakness from a fall in Chinese stocks on evidence that China’s economic growth is slowing after July China imports rose at their slowest pace of growth in 9 months, while July property prices in 70 major Chinese cities posted their smallest increase in 6 months, (2) the unexpected decline in Q2 nonfarm productivity which fell for the first time in over 2 years (-0.9% versus expectations of +0.2%), (3) weakness in materials and energy producers after the dollar index rallied to a 1-week high and the prices of most commodities tumbled, and (4) the fall in technology stocks led by a slump in semiconductor shares after Barclays Plc and R.W. Baird & Co. reduced their rating s on Intel, the world’s largest semiconductor manufacturer, because of weakening orders for personal computer components.
• Bullish factors included (1) strength in US phone companies after Wells Fargo upgraded the sector to “marketweight” from “underweight,” saying that US telephone stocks are increasingly appealing as a haven from slowing growth in the economy and because the industry pays out historically high dividends relative to the S&P 500 Index and that the industry “appears to be on the verge of a turnaround,” and (2) the post FOMC statement in which the Fed said they will reinvest principal payments on mortgage holdings into long-term Treasury securities as they expand their quantitative easing in an attempt to bolster economic growth and keep the US economy from lapsing back into recession.
• Cree (CRE) slumped 9.8% in European trading after the company forecast Q1 sales of $280 million at most, below analysts’ estimates of $284.3 million.

A123 Systems (AONE) dropped 4.6% in European trading after the company reported a Q2 loss of 33 cents a share, wider than the 27-cent loss estimated by analysts.

Day Trader: Click here to read the complete Morning Call 

Overnight Developments

• European stocks are slightly higher with the European Stoxx up +0.59% and Sep S&Ps up +1.90 points. The dollar and Treasuries are a little stronger as the markets await the US employment report for July later this morning. The euro weakened after June German industrial production unexpectedly declined -0.6% m/m versus expectations for a +0.5% m/m gain. A 1.8% increase in Royal Bank of Scotland (RBS) led gains in European bank stocks after RBS said its first-half net income unexpectedly increased to 9 million pounds ($14 million), higher than analysts’ estimates for a -47 million pound loss and its first profit since 2007. Unicore SA climbed 3.2% after the world’s largest precious-metals recycler raised its full-year profit forecast to a range of 315 million euros ($415 million) to 335 million euros, up from a previous forecast of 260 million euros to 290 million euros. Declines in brewing companies limited gains in European stocks after Anheuser-Busch InBev, the world’s largest brewer, fell 3.9%, and Heinekin NV dropped 3.5% on concern that wheat prices may continue to climb as other nations follow Russia’s wheat export ban.
• The Asian markets today closed mixed with Japan down -0.12%, Hong Kong +0.59%, China +1.64%, Taiwan +0.33%, Australia -0.01%, Singapore -0.39%, South Korea -0.02%, India -0.16%. Most Asian exporters lost ground on concern that the unexpected increase in US initial unemployment claims to a 3-1/2 month high signals a slowdown in the US economy. Korea’s Hyundai Motor, which counts North America as its biggest overseas market, closed down 2.4% and Fanuc Ltd, the Japanese industrial robot maker that gets 18% of its sales from North America, lost 1.2%. The Reserve Bank of Australia (RBA) said today that Australia’s economic expansion is unlikely to stoke inflation pressures for the next 2 years as weaker household and government spending offset the stimulatory boost from the nation’s mining boom. The RBA forecasts that Australia’s core inflation will average 2.75% until the end of next year before accelerating to the top of the central bank’s 2.0% to 3.0% target range by m id-2012. The RBA also reiterated its prediction from 3 months ago that annual economic growth will quicken to 3.75% late this year to 4.0% at he end of 2012.

Day Trader: Click here to read the complete Morning Call.

Overnight Developments

• European stocks are weaker with the European Stoxx down -0.81% and Sep S&Ps down -2.90 points. The dollar and Treasuries are higher on increased safe-haven demand as stocks falter. European bank stocks are leading financial shares lower after Allied Irish Banks Plc, Ireland’s second-biggest bank, dropped 8.2% after its first-half loss widened as bad debts rose. Standard Chartered Plc fell 6.3% after Royal Bank of Scotland Group Plc cut its recommendation on the bank to "hold" from "buy," citing weakness in capital-market related sales and pre-impairment profit that missed forecasts. Next Plc slid 7.4% and led retailers lower after Britain’s second-largest clothing retailer said consumer spending will be "more restrained" in the second half. Limiting losses in European stocks was the 4.0% jump in Electricite de France SA after the French government said that electricity prices would rise 3.4% starting Aug 15. Demand for dollars continues to weaken after the 3-month dollar Libor rate fell for the 16th consecutive session to a 2-3/4 month low of 0.424%.
• The Asian markets today closed mixed with Japan down -2.11%, Hong Kong +0.43%, China +0.37%, Taiwan +0.19%, Australia -0.65%, Singapore -0.43%, South Korea -0.10%, India +0.57%. Asian stocks were undercut after weaker-than-expected US economic data on home sales and factory orders renewed concerns about the strength of the global economy. Japanese exporters were pressured as the yen rose to an 8-month high against the dollar, which threatens to hurt the value of overseas sales when converted to the local currency. Canon, the world’s biggest maker of digital cameras, fell 4.3%, and Sony, which gets 22% of its sales from the US, slipped 3%. Toyota Motor dropped 1.6% and Honda Motor fell 2.2% after the companies posted declines in US auto sales last month of 3.2% and 2.0% respectively. The yield on Japanese 10-year government bonds fell below 1.00% for the first time in 7 years on speculation the strengthening yen will increase deflationary pressures.

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Overnight Developments

• European stocks are weaker with the European Stoxx down -0.81% and Sep S&Ps down -2.90 points. The dollar and Treasuries are higher on increased safe-haven demand as stocks falter. European bank stocks are leading financial shares lower after Allied Irish Banks Plc, Ireland’s second-biggest bank, dropped 8.2% after its first-half loss widened as bad debts rose. Standard Chartered Plc fell 6.3% after Royal Bank of Scotland Group Plc cut its recommendation on the bank to "hold" from "buy," citing weakness in capital-market related sales and pre-impairment profit that missed forecasts. Next Plc slid 7.4% and led retailers lower after Britain’s second-largest clothing retailer said consumer spending will be "more restrained" in the second half. Limiting losses in European stocks was the 4.0% jump in Electricite de France SA after the French government said that electricity prices would rise 3.4% starting Aug 15. Demand for dollars continues to weaken after the 3-month dollar Libor rate fell for the 16th consecutive session to a 2-3/4 month low of 0.424%.
• The Asian markets today closed mixed with Japan down -2.11%, Hong Kong +0.43%, China +0.37%, Taiwan +0.19%, Australia -0.65%, Singapore -0.43%, South Korea -0.10%, India +0.57%. Asian stocks were undercut after weaker-than-expected US economic data on home sales and factory orders renewed concerns about the strength of the global economy. Japanese exporters were pressured as the yen rose to an 8-month high against the dollar, which threatens to hurt the value of overseas sales when converted to the local currency. Canon, the world’s biggest maker of digital cameras, fell 4.3%, and Sony, which gets 22% of its sales from the US, slipped 3%. Toyota Motor dropped 1.6% and Honda Motor fell 2.2% after the companies posted declines in US auto sales last month of 3.2% and 2.0% respectively. The yield on Japanese 10-year government bonds fell below 1.00% for the first time in 7 years on speculation the strengthening yen will increase deflationary pressures.

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