(As of 7:15 am PST)
It’s
a back and forth morning for stocks with earnings driving market direction
again. Stock futures were higher going
into the open after positive earnings from Apple and Boeing. Apple beat expectations on the bottom line
and shares are up 4% this morning, carrying the Nasdaq higher. Early gains were pared after Caterpillar
reported disappointing earnings. The
global equipment maker reported a drop in Q2 profits and lowered its
outlook. Shares of CAT are down 1.9% and
pulling the Dow down with it. Other big
names reporting include AT&T, who reported slipping profits after the bell
yesterday, and Ford who posted better than expected earnings. In economic news, a flash reading of the PMI
manufacturing report showed activity picking up in July to the highest level in
4 months. Also, a housing report showed
new US home sales rose 8.3% to an annual rate of 497,000 in June, marking the
highest level in 5 years. International
markets are mixed with most Asian markets closing lower after disappointing data
out of China which showed a preliminary reading of manufacturing activity
slipping in July. Europe is enjoying a
nice trading session after upbeat manufacturing reports out of France, Germany
and the euro-zone. Gold is notching
higher, while oil is down 0.5%. Interest
rates jumped this morning with the 10 yr. treasury moving back up to
2.58%. We’re in the thick of earnings
season, with the tone so far a positive one for stocks, however the outlook for
earnings in the second half of the year is cause for concern and investors seem
to be taking a cautious stance today.
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