Good morning. Happy Wednesday. Happy Fed Day.
The Asian/Pacific markets closed mostly up. New Zealand dropped 1%; Indonesia and Japan rallied 1%. Europe is currently mixed. Austria is up 1%; there are no other 1% movers. Futures here in the States point towards a positive open for the cash market.
The dollar is down a little. Oil is up slightly; copper is down. Gold and silver are down.
So today is Fed day. It’s the day the FOMC tinkers with the overnight rate and discount rate and issues some sort of “state of the economy” and “state of our stance” statement (the fun and games happens at 12:30 est). Rates can’t be lowered because they’re already targeted at 0.0-0.25%, but they can keep their statement unchange or make comments about Europe unraveling and economic numbers here in the States getting worse and mention they are standing by ready to act if things get worse. This is what some on Wall St. expect, so the bar is pretty high. We could get a “sell the news” scenario if they Fed sticks with their previous comments. We could also get a mini blow off top. The S&P is, after all, up almost 100 point this month and has yet to put in back-to-back down days. It’s due for a rest.
Spanish 10-year notes again hit a 7% yield and then pulled back some. They also had to pay 5.07% for 12-month treasuries and 5.11% for 18-month paper. These shorter term debt yields are records are not sustainable. So much for that $125 billion injection into the banking system calming things down and giving investors confidence.
Procter and Gamble (PG) lowered guidance.
Adobe (ABDE) cut its full-year revenue outlook.
Pepsi (PEP) said an unfavorable exchange rate will hurt 2012 profits more than previously expected.
That’s it for now. From a technical standpoint, the market is much improved lately. The indexes based and one by one broke out above their bases. Breadth indicators have improved also. Sentiment is better. But a rest is needed, so don’t get too giddy with the upside. Be a trader. There’s always another set up. More after the open.
headlines at Yahoo Finance
headlines at MarketWatch
today’s upgrades/downgrades
this week’s Earnings
this week’s Economic Numbers
0 thoughts on “Before the Open (Jun 20)”
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if we had smart fed ,they would do a fbo banking bailout,,oops handout like the ecb did twice
then usa and world already bankrupt banks could swap their worthless soverign debt for worthless usd’s,so as the banks could then go out again and gamble on worthless derivitives
and world bankrupt soverigns could sinply swap their worthless iou’s cancelling them
but do we have smart fed–a fed that wont short the market to create a dead cat bounce
soon govts, pollies ,banks will be powerless and busted unable to maintain the bigest ponsi on earth
Very Interesting AussieJS,
How do they short the market through 30 Year Treasures?
when china quits taking usd we can give them more of our banks, businesses and politians
bama just called skankie a motha fuker and tol im to lit go of da god damn purse
big stinkin manipulated propped up pile of sht