Daily Market Commentary for July 26, 2011
During the month of June, sales of new single-family homes in the Northeast dropped to the lowest level since the government began tracking the data in 1973. (read more at Millennium-Traders.Com) http://www.millennium-traders.com/news/newscommentary.aspx
Consumer Confidence released today indicates consumers are expecting more jobs and expect to see an increase in income over the upcoming months. During the month of July, consumer-confidence rose to 59.5 from a downwardly revised 57.6 in June. Even though expectations of consumers improved in July, views on the current economic situation declined.
George Soros, at age 80, one of the world's most famed investors and one of the world's richest men had decided to hang up his hedge-fund hat. Soros Fund Management, established by Soros in 1969, is perhaps best known for having 'broken' the Bank of England by aggressively and successfully, betting against the pound in 1992. Soros's sons Jonathan and Robert, both executives with the firm, sent a letter expressing gratitude to Soros Fund Management investors and said the firm would return to outside investors, their approximate $1 billion in invested cash. They added that they would continue to operate the business as a family office rather than an investment firm.
Of course government leaders continue to battle over rival plans to cut government spending and raise the U.S. debt ceiling through the House and Senate this week, amid little apparent appetite for compromise as the U.S. gets closer to running out of borrowing power. House Republicans are planning to vote tomorrow on a measure outlined by Speaker John Boehner that would reduce the deficit by $3 trillion over 10 years and immediately hike the debt ceiling by $1 trillion. Meanwhile, Senate Democrats are preparing to act on a plan from Senate Majority Leader Harry Reid that would raise the debt ceiling by $2.7 trillion and cut spending by nearly the same amount. Both plans share several similarities in that they would both cut $1.2 trillion in discretionary spending cuts. The indecisiveness of the two parties continues to weigh heavily on investors and Wall Street.
Netflix (NasdaqGS: NFLX) got slammed today and by early afternoon shares were lower by 8% or down almost 23 points. Late Monday the company’s forecast was a disappointment, given that it is factoring in weakness from a recently announced plan to separate its streaming-only subscription plans from its mail-order DVD plans resulting in a notable increase in rates for customers who currently use both. The company expects subscriber growth to return to more normal levels in Q4 and even suggested that revenue for the period could top $1 billion for the first time.
AK Steel Holding (NYSE: AKS) shares tumbled lower by 15% into early afternoon trading, taunting the current 52 week low, after reporting Q2 profit that came in shy of expectations.
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