Daily Market Review - July 29, 2013 Global central bank meetings set the tone for the week The share market throughout Europe is expected to open slightly higher on Monday ahead of central bank meetings in the US, UK and Europe. The Bank of England, US Federal Reserve and the European Central Bank will all hold rate meetings this week. As well as this, much talk has already begun on the much anticipated Non-Farm Payrolls which will take place at the end of the week with many already expecting that figures may not impress. Analysts are expecting what could be a choppy week of trading. Greece was back on the talking board as the nation is still on the hook to meet its financial obligations despite euro zone officials signing off a further tranche of aid on Friday. Europe is expecting a big week of trading this week with a lot of economic data set to be released. Dow Jones finds its way back to log 5-week win rally The Dow Jones saw some incredible see-saw movement on heavy trading last week as it clawed its way back from a 150 point drop to finish on a fifth consecutive weekly rally. The S&P 500 and NASDAQ were among the key global indices on Friday to recover from big drops early in the trading session. Consumer sentiment was a key talking point on Friday as the figures were released to post a six year high. The Thomson Reuters/Michigan’s Consumer Sentiment data on the overall index rose to 85.1 in July from 84.1 in June. Expectations were set at 84 suggesting that consumer spending is expanding for the year ahead. The information didn’t do much for the markets however as the Dow Jones lost almost 150 points only to recover late in the session. Second quarter GDP figures are among the key pieces of information alongside the job creation report to be released today. Further talk is continuing about who will take over Fed Chairman Ben Bernanke at the end of his term in January. White House officials commented that President Obama will not likely announce a decision until later in the year. Second quarter earnings continue but slow the pace Earnings reports for the second quarter of 2013 continue this week however most of the key US stocks in view have reported earnings. Amazon and Starbucks were among the heavy hitters on Friday to release their figures. Amazon declined after the internet giant reported an unexpected loss and issued a cautious current-quarter forecast as it continues to invest in new areas like cloud computing. At least three brokerages raised their price targets for Amazon late Friday. Starbucks rallied and opened more than 5% higher once the coffeehouse giant reported much higher earnings expectations and also forecast current-quarter profit above consensus. The company also boosted its full-year guidance as its new menu offerings helped drive customer traffic. At least two brokerages lifted their price targets on the company. More than 50% of S&P 500 companies have now reported results so far this quarter. 68 percent of firms beat expectations and 56 percent beating revenue estimates, according to the data from Thomson Reuters. If all remaining companies release earnings in line with expectations, earnings will be up 4.1 percent from last year’s second quarter.
Posted on: Mon, 29 Jul 2013 10:49:44 +0000
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