Morning 7-24

Earnings

  • Caterpillar guided lower citing Weak Asian demand and higher costs, but they did raise Dividend. Caterpillar a benchmark or economic bellwether so results and price action are closely watched.
  • Boeing not a surprise  lost $3.4 B in Second Quarter Stock -1%
  • UPS another economic bellwether said during earnings call Global Economy still in growth mode, Consumer driving economy
  • Texas instruments gave a surprisingly stronger than predicted sales forecast (BBG) stock +6%

Economic data Ugly in Europe providing a bid into Bunds, Treasuries, and BTPs. The French PMI released at 2:15 A.M. is what started the drop in yields run up in Bunds. Does today’s poor Economic releases change traders thinking about tomorrows ECB meeting, quite possibly as Yields dropping overnight.

Yield changes in Bps for European Sovereign Yields:

  • Italy -10.7  Futures +116 ticks
  • Greece -7
  • Spain -6
  • France and Germany -3
  • Negatively yielding bonds now at a record over $13T(IFR)

Europe (From ITC Markets) highlights mine

-French July Biz Climate Mfg: 101 vs 102 cons
-French July Markit Mfg. PMI lower (prelim): 50.0 vs 51.6 cons
-French July Markit Services PMI lower (prelim): 52.2 vs 52.6 cons
-German July Markit Mfg. PMI lower (prelim): 43.1 vs 45.1 cons
-German July Markit Services PMI (prelim): 55.4 vs 55.3 cons
-EZ July Markit Mfg PMI lower (prelim): 46.4 vs 47.7 cons
-EZ July Markit Services PMI (prelim) in-line: 53.3
-EZ June M3 Money Supply: 4.5% y/y vs 4.6% cons
 
Markets
 Dow and Spoos a bit lower due to Cat and Boeing, Nasdaq -31 handles European bourses steady to higher Deutsche bank earnings were bad but surprises no one. U.S. 10 year yield 2.04 ish down 4bps from yesterday’s highs Gold with a small bid   and Dollar surprisingly a touch lower. Oil trading a bit higher as API reported an 11 mln Barrel drop in stockpiles.
 
 
 Mueller testimony in front of two Houses panels’ today markets will be keeping one eye on testimony as it is unlikely to much market moving potential, but you never know. ECB meeting tomorrow   at 6:45
 
Calendar:
8:45 Markit PMI
9:00 New Home sales

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