Daily Market Commentary for July 29, 2011
A drastic downward revision of Q1 GDP tipped the scale.
(read more at Millennium-Traders.Com) http://www.millennium-traders.com/news/newscommentary.aspx
President Obama held a speech shortly before 10:30am ET today urging Lawmakers to come together with a satisfactory bipartisan plan to resolve the debt ceiling crisis. The damage of a downgrade of the AAA credit rating of the U.S. - could be catastrophic to the country, Wall Street and Main Street America. While the President maintains the ability to utilize the 14th Amendment of the Constitution, it does not appear something he wants to have to utilize. House Republicans planned a second attempt at passing Speaker John Boehner’s proposed debt legislation, and Senate Majority Leader Harry Reid said he had asked Senate GOP leader Mitch McConnell to meet with him for a “good-faith” negotiation. Senate Democratic Leader Harry Reid said he’s bringing a bill to raise the U.S. debt ceiling and cut the deficit to the Senate floor as he said he can’t wait any longer for a competing proposal from House Republicans. Markets are growing increasingly nervous about the possibility of a default and Treasury Secretary Timothy Geithner reported Friday morning that businesses were unable to borrow money for longer than overnight.
University of Michigan Consumer Sentiment fell to 63.7 in July to its lowest level seen, since March 2009. Sentiment was sharply lower from June reading of 71.5. Consumer Sentiment reading covers how consumers view their personal finances as well as business and buying conditions; averaged about 87 in the year before the start of the most recent recession.
Yahoo! (NasdaqGS: YHOO), its Chinese partner Alibaba Group and Japanese Internet company SoftBank reported that they had reached an agreement on Alibaba payments service Alipay. Under the agreement, Alibaba Group will receive a minimum of $2 billion and a maximum of $6 billion in proceeds from an initial public offering or other liquidity event involving Alipay with the deal expecting to close by the end of 2011. Yahoo's 43% ownership stake in Alibaba Group has been a draw card for investors keen to indirectly buy into China. The deal had needed the consent of Softbank, whose founder is an Alibaba board member.
Zoll Medical (NasdaqGS: ZOLL) shares rallied higher by 24% into early afternoon trading after reporting better-than-expected fiscal Q3 earnings.
ISTA Pharmaceuticals (NasdaqGM: ISTA) shares plummeted 31% into mid-day trading, a day after it released a disappointing quarterly-earnings report and poor preliminary results from a Phase III study for its ophthalmology drug Remura.
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