Daily Market Commentary for June 28, 2011
U.S. trade officials urged China to further open its markets ahead of high-level trade talks later in the year. (read more at Millennium-Traders.Com)
Investors expressed their optimism over a solution to the debt crisis in Greece. Dow Jones Industrial Average was hosting a triple digit gain, mid day. “The only way to avoid immediate default is for parliament to endorse the revised economic program,” said Olli Rehn. The European Union commissioner for economic and monetary affairs, in a statement Tuesday. The European Union warned Greece that passage of a controversial and unpopular austerity package this week, offers the sole path for averting a potentially devastating default. The European Union and International Monetary Fund have made approval of the 78 billion euros ($111.4 billion) package of additional austerity measures and accelerated asset sales a prerequisite for the release of a delayed €12 billion tranche of aid, for Greece. Approval would move Greece closer to an additional aid package, which may reach €120 billion. The austerity and privatization measures “must be approved if the next tranche of financial assistance is to be released,” Rehn said. “To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default.” Main opposition party in Greece has refused to support the package despite pressure from European officials who have called for cross-party support. Greek Prime Minister George Papandreou’s PASOK party holds a five-seat majority in the 300-seat chamber and at least two PASOK members have threatened to vote against the plan. Lawmakers are expected to vote on the plan on Wednesday and if passed, a vote on implementation measures is expected to follow on Thursday.
In June, Consumer Confidence fell to worst levels seen, in eight months. Continuing concerns over employment situation and income keep confidence levels at lows. Other readings: Expectations barometer fell to 72.4 in June from 76.7 in May - lowest since October. Those expecting more jobs in six months fell to 14.2% in June from 16.7% in May. Those expecting income to decrease rose to 16.5% from 15.1%. The present-situation gauge fell to 37.6 in June from 39.3 in May - to strike a three-month low. The number of those saying business conditions are 'bad' ticked higher as well as those saying jobs are 'not so plentiful'. Percentage of respondents that plan to purchase an automobile within six months fell to 10.7% in June from 13.7% in May. Those with plans to buy a home fell to 3.7% from 5.5%. Those with plans to purchase major appliances declined to 47% from 47.9%.
Monster Worldwide (NYSE: MWW) shares were higher by 8% mid-day after announcing the launch of BeKnown, a networking app designed to allow Facebook users to establish a professional network and find career opportunities.
Nike (NYSE: NKE) shares gained 7% into mid-day after reporting Q4 earnings that beat Wall Street estimates.
Westport Innovations (NasdaqGS: WPRT) shares tacked on a gain of 10% mid-day company announced agreement with General Motors (NYSE: GM).
Youku.com (NYSE: YOKU) shares were higher by 18% mid-day after announcing partnership to offer American on-demand movies to Internet users in China - with Time Warner Inc. (NYSE: TWX).
Spreadtrum Communications (NasdaqGS: SPRD) shares were lower by 10% after Muddy Waters reported short position.
Economic data released today:
Conference Board Consumer Confidence: U.S. Conference Board June Consumer Confidence 58.5 vs. May 61.7; U.S. Conference Board June Expectations Index 72.4 vs. May 76.7; U.S. Conference Board June Present Situation Index 37.6 vs. May 39.3.
Richmond Manufacturing Index: June Manufacturing Index 3 vs. May -6; June Mfg Shipments Index -1 vs. May -13; June Services Revenues Index -4 vs. May 9; June Retail Revenues Index -2 vs. May 3.
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