Daily Market Commentary for May 18, 2011

Securities and Exchange Commission is set to propose tougher regulations for credit rating industry, including new penalties for ratings firms that violate conflict of interest rules. (read more at Millennium-Traders.Com)
http://www.millennium-traders.com/news/newscommentary.aspx

The Consumer Financial Protection Bureau (CFPB) today announced the Know Before You Owe project, an effort to combine two federally required mortgage disclosures into a single, simpler form that makes the costs and risks of the loan clear and allows consumers to comparison shop for the best offer. Tomorrow, the CFPB will begin testing two alternate prototype forms that are designed to be given to consumers who have just applied for a mortgage loan. This testing – which will take place over the next several months and involve one-on-one interviews with consumers, lenders, and brokers – will precede and inform the CFPB’s formal rulemaking process. The CFPB also has posted the prototypes on its website with an interactive tool to gather public input about the designs.


Dell (NasdaqGS: DELL) got a boost this morning after reporting better-than-expected Q1 earnings plus, raised its forecast for the full year. The company reported the rise in Q1 profit resulted from cost reductions and improved services revenue. Strong sales in server hardware added to the improvement. Overall PC sales by Dell fell slightly in the quarter, as sales to businesses were offset by a decline in the consumer segment.

Target Corporation (NYSE: TGT) reported a larger-than-expected rise in quarterly profit but, short of analysis expectations, sending shares lower early afternoon by 3% or almost 2 points.

SodaStream International (NasdaqGS: SODA) hosted a new 52 week high today with a gain into early afternoon trading, of over 5 points or 12% amidst heavy trading volume.

Sina (NasdaqGS: SINA) way actively trading and lower by 1% into early afternoon trading session. Shares were trending lower from the mid-morning trading session.

ProShares Ultra Silver (NYSEArca: AGQ) shares were trending higher, up almost 12 points or 7% by early afternoon trading session.

On the New York Mercantile Exchange before the noon hour, commodities rose for the first in three days - Oil futures were up $2.73 to $99.64 a barrel and gold futures were up $18.5 at $1,498.5 an ounce.


Economic data released today:

MBA [Mortgage Bankers Association] Mortgage Applications: US MBA Market Index +7.8% at 534.8; last week 496.3; US MBA Purchase Index -3.2% at 188.6; last week 194.9; US MBA Refinance Index +13.2% at 2,568.2; last week 2,269.1.

Crude Oil Inventories from DOE: U.S. Refineries Ran at 83.2% capacity; seen 82.00% capacity; U.S. Refineries Ran at 83.2% capacity vs. 81.7% capacity week ago; U.S. Distillate Stockpiles -1.157 Million Barrels in week; seen +0.5 Million Barrels; U.S. Distillate Stockpiles -1.157 Million Barrels at 143.132 Million Barrels; U.S. Gasoline Stockpiles +0.119 Million Barrels in week; seen +0.6 Million Barrels; U.S. Gasoline Stockpiles +0.119 Million Barrels at 205.936 Million Barrels; U.S. Crude Oil Stockpiles -0.015 Million Barrels in week; seen +0.7 Million Barrels; U.S. Crude Oil Stockpiles -0.015 Million Barrels at 370.312 Million Barrels.


FOMC Meeting Minutes: Fed Cites High Energy Prices, Fiscal Contraction As Keeping Growth Moderate; Fed Expects Moderate Recovery to Continue Despite 1Q Slowdown; Fed Officials Say Wage Increases Remain Subdued; A Few Fed Officials Favored Announcing An Explicit Inflation Target; Fed Officials to Closely Monitor Inflation, Inflation Expectations; Fed Officials Expect 2011 Commodity-Driven Inflation Rise to be Temporary; Many Fed Officials More Concerned By Upside Risks to Inflation; Some Fed Officials Cite 'Disruptions' from US Debt Limit Debate as Risk; Fed Officials Cite Energy Prices, Europe Crisis, Japan Disaster As Downside Risk; Some Fed Officials Saw Risk Economy Could Disappoint; Some Fed Officials Worried Early Exit for Easy Credit May Damp Recovery; A Few Fed Officials Saw Need to Raise Rates, Sell Assets In 2011 to Counter Inflation; Nearly All Fed Officials Saw MBS Runoffs as First Exit Strategy Step; Fed Exit Strategy Talk Doesn't Mean it Will Happen Soon; Fed Officials Held Detailed Exit Strategy Talks at April FOMC.



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