July 19th, 2016

Daily Market Commentary



  • Building permits in the US were listed at 1.153M in month-over-month terms, above estimates.
  • US Housing starts were also listed at 1.189M, above estimates.
  • The Redbook Index, which measures same-store sales of US general merchandising stores, was reportedly down 0.5% and up 0.4% in month-over-month and year-over-year terms, respectively.
  • A ZEW survey of Investor Confidence for the Eurozone was reported at -14.7, far below estimates of 12.3.



  • Oil traded near $45 a barrel in New York, as a decline in European equities and concerns about fuel demand countered signs that supply losses are re-balancing world crude markets.
  • Gold rose from its lowest close this month as a drop in equities spurred demand for a haven. The International Monetary Fund is due to update its projections for world growth on Tuesday and Managing Director Christine Lagarde warned last week that estimates may be cut.


  • Reviving the Keystone XL pipeline project from Canada has become an official policy of the Republican Party in the 2016 election, with its inclusion in the platform that’s just been approved at the national convention (Globe & Mail).
  • The recession in Alberta will be its worst in at least three decades and will be among its longest as well, economists at TD Bank said in a new report. (Huffington Post)

United States:

  • U.S. index futures slipped, indicating equities will fall after reaching a fresh record. The rally that pushed the S&P 500 to an all-time high for the fifth time in six days and the Dow to a fifth straight record is taking a breather as investors assess gains amid the ongoing earnings season.
  • Johnson & Johnson posted second-quarter profit earnings that beat analysts’ estimates, aided by the growing pharmaceutical division that is home to blockbuster products such as arthritis treatment Remicade.
  • Investors pulled an estimated $21.7 billion from actively managed funds that buy U.S. stocks in June, the biggest monthly withdrawal since October 2008, Morningstar Inc. reported Monday.
  • After a series of setbacks, Raytheon Co. cleared two hurdles needed to receive a new contract and likely full-production approval this year of a top missile interceptor for which the Pentagon wants to spend as much as $2.6 billion.


  • European stocks fell as commodity producers declined and the earnings season picked up pace. Akzo Nobel NV and Trelleborg AB — among 18 Stoxx Europe 600 Indexcompanies reporting results today — slid at least 4 percent after their sales missed analyst forecasts.
  • Daimler AG, Paccar Inc.’s DAF Trucks, Volvo-Renault and Iveco agreed to pay European Union regulators a record 2.93 billion euros ($3.24 billion) in fines for fixing truck prices over 14 years.
  • Asian stocks outside Japan fell from their highest levels in almost nine months as commodity producers led losses and investors judged the rally spurred by a global equities recovery was overdone.
  • Takata Corp., the air-bag supplier behind the industry’s largest ever recall, routinely manipulated results of air-bag inflator tests reported to Honda Motor Co., according to an ongoing audit commissioned by the parts maker and its biggest customer.
  • SoftBank Group Corp. plunged in Tokyo after unveiling its $32 billion takeover of chip designer ARM Holdings Plc, a deal that marks founder Masayoshi Son’s biggest gamble so far on the future of technology.
  • China’s cabinet fueled speculation that the nation is pressing ahead with debt-to-equity swaps that would give lenders stakes in some companies as part of tackling a build-up in corporate leverage and bad loans.

*All information is taken from Bloomberg, unless otherwise noted.