July 16, 2012  |   News,Services


Analysts polled by Reuters had expected the University of Michigan’s initial July consumer sentiment index to show a minor gain. That didn’t happen: instead of the projected 0.2% rise to 73.4, the index fell 1.2% to 72.0, a low unseen since December. An exclamation point within the data: just 19% of Americans polled felt that their financial situation would improve within the next year, a record low for the survey. The barometer of current economic conditions did improve to 83.2 from 81.5.1

Given the 0.9% decline in energy prices last month, this overall gain in the Producer Price Index was surprising. The cost of gasoline increased 1.9% last month and food prices climbed as well, influencing the advance. Core PPI rose 0.2% in June.1

Pump prices increased 0.9% last week, according to AAA’s Daily Fuel Gauge Report; they are up 1.0% so far for the month. NYMEX crude gained 3.14% last week to settle Friday at $87.10 a barrel; gold advanced 0.86% on the COMEX for the week, with those futures settling Friday at $1,592.50 per ounce.2

Why? China’s latest annualized GDP estimate (+7.6%) was not as bad as forecasters expected, and Q2 results from JPMorgan and Wells Fargo were encouraging, even as Moody’s cut Italy’s credit rating Friday to two notches above junk level. After its 204-point Friday gain, the DJIA settled at 12,777.09. The NASDAQ ended Friday at 2,908.47, while the S&P 500 closed at 1,356.77. Across the week, the Dow went +0.04%, the S&P +0.15% and the NASDAQ -0.98%.2,3,4

THIS WEEK: Monday, Census Bureau data on June retail sales arrives plus Q2 results from Citigroup, Charles Schwab and Gannett. Tuesday, the June CPI and June industrial output data appear, Ben Bernanke starts two days of testimony in Congress, and earnings reports emerge from Yahoo!, Intel, Coca-Cola, Goldman Sachs, Johnson & Johnson and Mattel. On Wednesday, a new Fed Beige Book is out, June housing starts and building permits figures arrive and we have earnings from Bank of America, U.S. Bancorp, American Express, PNC Bank, Honeywell, Qualcomm, Yum! Brands and eBay. Thursday, NAR offers June existing home sales data, new initial claims numbers appear and Q2 results arrive from Philip Morris, Microsoft, Morgan Stanley, Novartis, SanDisk, Capital One, Nokia, Travelers, Verizon, BB&T, Google, AMD, Chipotle, E*Trade and Southwest Airlines. Friday, we have IPOs from Kayak and Fender and Q2 earnings from GE and Xerox.
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 7/13/123,5,6,7
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1 – www.reuters.com/article/2012/07/13/usa-economy-idUSL2E8ID23U20120713 [7/13/12]
2 – money.msn.com/market-news/post.aspx?post=96140b67-efa5-49c8-9ffc-85cd17eaea41 [7/13/12]
3 – www.cnbc.com/id/48174616 [7/13/12]
4 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F13%2F11&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F13%2F11&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F13%2F11&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F13%2F07&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F13%2F07&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F13%2F07&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F12%2F02&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F12%2F02&x=0&y=0 [7/13/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F12%2F02&x=0&y=0 [7/13/12]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/13/12]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/13/12]
7 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]

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