Daily Market Commentary for July 15, 2011

This weekend's looming traffic snarl known as 'Carmageddon' is conjuring visions of an automotive apocalypse or to portray Los Angeles as a ghost town. (read more at Millennium-Traders.Com)
http://www.millennium-traders.com/news/newscommentary.aspx

With second quarter earnings season in full force, Google gave the markets a boost after beating analysts expectations. President Obama held a speech this morning regarding the U.S. debt limit. Lawmakers continue to face an August 2 deadline to reach a deal to raise the debt ceiling or reduce national financial obligations.

Europe’s second round of stress tests released today shows that eight banks failed - five in Spain, two in Greece and one in Austria. On a good note, reportedly all of the regions largest banking firms passed. European Banking Authority pointed to significant capital raising already this year as one of the key reasons for such a small number of banks failing the tests.

Summarized portion of speech from President Obama earlier today regarding U.S. debt ceiling: U.S. should extend payroll tax holiday, unemployment insurance; says 'ready to move' on debt ceiling; wants lawmakers to show him plan to raise debt ceiling; deal should at least put a down payment on deficit reduction; says everyone wants to avoid U.S. default; says default would essentially amount to a tax increase; says now 'unique' opportunity to stabilize U.S. finances; major deal requires changes to Medicare, revenues; says polls show Republican voters support a major deal; says a big package is hard to do; says still pushing for a big deal.
Obama added, “We don’t need a constitutional amendment to do our jobs.” Addressing the House Republican bill, he said: “I have not seen a credible plan that would allow you to get to $2.4 trillion without really hurting ordinary folks.”


Economic data released today:

CPI [Consumer Price Index]: U.S. Real Average Weekly Earnings -0.1% in June; U.S. June CPI Energy Prices -4.4%; U.S. June CPI Food Prices +0.2%; U.S. June CPI Unrounded -0.222%; U.S. June CPI Core +0.254%; U.S. June CPI Excluding-Food & Energy +0.3% vs. Consensus +0.2%; U.S. June Consumer Prices -0.2% vs. Consensus -0.2%.

New York Empire State Manufacturing Index: NY Fed July Prices Received 5.56 vs. 11.22 in June; NY Fed July New Orders -5.45 vs. -3.61 in June; NY Fed's July Manufacturing Index -3.76 vs. -7.79 in June; NY Fed July Employment 1.11 vs. 10.20 in June;

Capacity Utilization Rate: U.S. May Capacity Use Unrevised at 76.7%; U.S. Jun Capacity Utilization Unchanged-Pt at 76.7% vs. consensus 76.9%.

Industrial Production: U.S. May Industrial Production Revised to -0.1% from +0.1%; U.S. Jun Industrial Production +0.2% vs. consensus +0.3%.

University of Michigan Consumer Sentiment Index: Mid-July Current Index 76.3; Mid-July Expectations 55.8; 5-Year Inflation Forecast +2.8%; Mid-July Sentiment 63.8.


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