Before the Open (Jul 2)

Posted on by Jason Leavitt

Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets closed mostly up. New Zealand and Singapore gained over 1%. Europe is currently up across the board. France, Germany and Greece are up more than 1%, Austria and Norway aren’t far behind. Futures here in the States point towards a positive open for the cash market.

The dollar is down. Oil and copper are down. Gold and silver are down.
I don’t have much to add to the comments I made over the weekend in the Weekly Report. The market moved up in a big way last week and may be in the beginning stages of breaking out of its recent funk. But we need follow through; we need confirmation. We need evidence Friday wasn’t just a 1-day wonder that will get sold into. Unfortunately this may not happen soon.
We have an odd week ahead of us. Tuesday is a half day, and the market is closed Wednesday for the 4th of July. And Thursday is the day before the latest jobs report is released. By the time Friday rolls around, the market could gap and then just sit there. This sets us up for a week where volume may be light every day and we many not get confirmation/non confirmation of last week’s big move until next week. Mid week holidays are rare, so I’m not sure what to expect.
Spanish 10-year note yields are ~ 6.28% – a huge drop off the highs of not long ago. Italian borrowing costs are down a bunch too.
Euro-area unemployment rose to 11.1% in May from 11% in April – the highest level ever recorded.
Germany’s PMI (Purchasing Manager’s Index) declined from 45.2 to 45. Spain’s fell to 41.1. China’s dropped to 50.2. The 50 level is considered the dividing line between expanding and contracting.
DELL is being rumored to be close to buying QSFT for $2.32B.
BMY is buying AMLN for $5.3B.
LNCR is being bought by a German company. Look at the LNCR chart – I guess buying on insider knowledge isn’t against the rules in Germany.
That’s it for now. Again, I’m not sure what to expect this week given the day off Wednesday and the “scheduled” slow days Tuesday and Thursday. Be flexible and don’t dig your heels in. 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 (Jul 2)”

  3. instos dont like to sell before earnings,–so has anyone got some dead cats they can sell me
    hope its volitile but probably boring sideways chop,to fill in the time

    1. this is the way the fed is making us distribute. flat no volitility boring drawn out controlled managed miniputated. they think they’re saving the world

    1. no. it will never happen. an overheated polluted corrupt pile of shit just decays and stinks.
      this sewer bus has been driven by monkeys for over 50 yrs. its too late

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