July 15th 2014

Daily Market Commentary



  • Retail Sales in the U.S. were reportedly up 0.2%, below estimates of 0.6%.
  • The Export Price Index in the U.S. was reportedly down 0.4% and up 0.2% in month-over-month and year-over-year terms, respectively.
  • The Import price index was reportedly up 0.1% and 1.2% in month-over-month and year-over-year terms, respectively.
  • The NY Empire State Manufacturing Index in the U.S. was reported at 25.60, above estimates of 17.
  • A ZEW survey on economic sentiment in the Eurozone was reported at 61.8, below estimates of 62.3.
  • The Redbook index, which measures same-store sales growth in U.S. general merchandisers, was reportedly down 0.1% and up 4.1% in month-over-month and year-over-year terms, respectively.


  • West Texas Intermediate crude traded near the lowest price in two months before inventory data measuring the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent fell as supply risks eased.
  • Gold traded above a three-week low in London on speculation the biggest decline this year may attract buying and before Federal Reserve Chair Janet Yellen speaks today and tomorrow.
  • Copper slipped in New York as the dollar strengthened before Federal Reserve Chair Janet Yellen addresses U.S. lawmakers on monetary policy.


  • Production at a Bombardier Inc. rail plant in Ontario has stalled after about 900 workers walked off site at 2 p.m. yesterday following failed negotiations between the labour union and management.
  • Barrick Gold announced that it has reached an agreement to form a joint venture with Saudi Arabian Mining Company Ma’aden to operate the Jabal Sayid mine, located 120 km SE of Medina, Saudi Arabia.

United States:

  • U.S. stock-index futures were little changed, after the Standard & Poor’s 500 Index rebounded from its biggest weekly loss in three months, as investors awaited Federal Reserve Chair Janet Yellen’s testimony to Congress.
  • Microsoft Corp. is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia Oyj’s handset unit, people with knowledge of the company’s plans said.
  • Albermarle Corp. has agreed to acquire Rockwood Holdings Inc. in a cash and stock transaction valued at about $6.2 billion to create a chemicals group with interests in lithium, catalysts, bromine and surface treatment.
  • Goldman Sachs Group Inc. reported a surprise increase in second-quarter profit as fixed-income revenue fell less than many analysts projected and investment-banking fees rose.
  • JPMorgan Chase & Co., the biggest U.S. bank, posted second-quarter profit that beat estimates as fixed-income trading revenue fell less than analysts expected. Shares rose in early trading.


  • European stocks dropped, led by banks and technology shares, as investors awaited Federal Reserve Chair Janet Yellen’s semi-annual testimony.
  • Google Inc. gained an ally to develop smart contact lenses with embedded electronics to improve vision and monitor health by teaming up with Swiss drug company Novartis AG.
  • Airbus Group NV dominated the opening of the Farnborough Air Show with a $21 billion sales blitz and extended its run on the second day to grab an early lead over Boeing Co. at the aviation industry’s biggest expo. Boeing Co. is poised to win orders valued at as much as $9.2 billion.
  • Volkswagen AG, Europe’s largest car-maker, plans to cut costs and boost productivity at its namesake brand by 5 billion euros by 2017, in order to lift sagging profitability.
  • Asian stocks rose for a second day after Citigroup Inc. reported better-than-forecast profit, boosting confidence that earnings growth can sustain further gains in shares.
  • Governor Haruhiko Kuroda signaled confidence in the Bank of Japan’s bid to drive inflation to 2% as the central bank maintained unprecedented stimulus.
  • China’s broadest measure of new credit topped analysts’ estimates in June, signaling policy makers’ shift toward supporting economic growth over reining in shadow banking.