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Overnight Sentiment: Muted
Even with Citi reporting a miss on the top line of $18.6 billion (Exp. $19 billion), but a bottom line beat courtesy of more loan loss reserve releases amounting to $984 million, or 35% of the entire pretax net income number, sentiment has been very quiet this morning, with hardly any sharp moves, aside from the now usual leak in Spanish sovereign bonds, following Bloomberg's confirmation of the WSJ story that the ECB is willing to impair Senior bondholders, while Swiss nominal bonds continue to trade below 0.4% and the EURUSD drifts lower. Today's lethargy may be interrupted at 8:30 am when the Empire Manufacturing and Advance Retail Sales data are released, but unless we get another massive, and very convenient, EUR repatriation out of Europe at just the moment when the US market opens, we doubt much will happen today ahead of Bernanke's semi-annual congressional testimony tomorrow.
More from BofA:
Market action
Asian equity markets finished mixed after Chinese Premier Wen Jiabao said that China will increase measures to support growth. Offsetting that positive news was concern that profits would decline for Asian companies in this reporting season. The best performer was the Korean Kospi up 0.3% followed by the Hang Seng up 0.2%. On the flip side, the Shanghai Composite fell 1.7% and the Indian Sensex lost 0.6%. The Japanese Nikkei was closed today for a public holiday.
In Europe, equities are up a marginal 0.1% in the aggregate. At home, futures are pointing to a lower opening later today. The S&P 500 is set to open 0.2% lower. That follows the solid 1.7% rally recorded on Friday.
Treasuries are marginally bid in the longer end of the curve. The five year yield is flat, while the ten and long bond are down 1bp. The 10-year yield is currently 1.48%. In Europe, Spain's 10-year yield is up 9bp to 6.66% and Italy's yield is 2bp higher at 6.05%.
The dollar is strengthening with the DXY index up 0.3%. Commodities are selling off on the back of the weaker dollar. WTI crude oil is down 32 cents to $86.77 a barrel and gold is down $5.55 an ounce to $1,584.12.
Overseas data wrap-up
Euro area inflation held steady at 2.4% yoy in June. Looking ahead the weak economic environment and ongoing sovereign debt crisis will put downward pressure on prices in the region.
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good post but gold will be the one to watch today Gold: the objective of $1,547
long since stopped worrying about data and earnings. Market is gonna be whatever Ben and Timma program the algos to finish it. A market so hijaked by one person. Pathetic. You have dreadful employment reports (among other dreadful data) and 2 weeks later your at near year highs. Please. doesnt matter until Ben lifts the short ban and market can get real price discovery.
Elliott wave counts show wave 2 ending at several degrees. These are periods where volume is extremely low.
http://bullandbearmash.com/index/djia/daily/
Wave 3 down follows.
President Francois Hollande on Saturday denounced a plan by carmaker PSA Peugeot-Citroen to cut 8,000 jobs as unacceptable and said it must be renegotiated.
The struggling French carmaker announced the cutbacks Thursday, along with its intention to close a major factory north of Paris. Employees staged a protest the same day, and unions are calling for more.
yep hollande always wanted to run a productive co, instead he got stuck with france
June retail -05 vs =02.. that should be good for a few ticks up on the ES. Bullish!