Trading Blog - Daily Market Report

Markets close near lows after Greek talks fail $DXc1

US stocks ended the session weaker to extend recent losses after Greek politicians failed to form a new government after recent elections. Greece will now more than likely hold new elections with markets concerned that a newly elected government may reject the recent bailout conditions
Although the EU crisis is deepening the EU avoided a second recession in as many years after German GDP rose more than expected. The economy grew 0.5%, beating the consensus of a 0.2% contraction
There was some encouraging US economic data overnight with the Empire Manufacturing Index increasing to 17.09 from 6.6 in the last month. Retail Sales rose 0.1% which came in slightly less than expected
The S&P500 fell for the third day in a row with the index now down more than 6% from the highs seen in April
Cosmetics giant Avon fell 9.7% after Coty Inc withdrew their takeover offer. Chesapeake Energy also fell 7.8% after a broker downgrade
DOW -0.50%, S&P500 –0.57%, NASDAQ –0.30%
US Dollar Index rallied for a record 12th day in a row on Greek concerns
Gold was off slightly and Crude fell 0.8% on expected higher inventories

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US markets have been lower in four out of the last five trading days with speculation that Greece may exit the EU intensifies. Despite recent elections Greek politicians have struggled to form a government
Financial and energy stocks led the losses in the S&P overnight. JPM and BAC led the major financials lower and European banks were also weaker with continued concerns surrounding Greece. Energy stocks were hurt by a slump in commodity prices due to European uncertainty and a potential continuation of the Chinese slowdown
European Industrial production unexpectedly fell for the month of March, the index fell 0.3% against economists expectations of a rise of 0.4%
Leading the moves on the Dow was JPM, BAC, INTC and GE which all fell 3.17%, 2.65%, 2.23% and 2.16% respectively
DOW -0.98%, S&P500 –1.11%, NASDAQ –1.06%
The EUR weakened to its lowest level in more than three months against the USD on Greek concerns. The AUD has fallen below parity
Gold fell to a Dec 30 low and Crude made a five month low overnight

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The fallout from JP Morgan's USD2.00 Billion hedging loss continues to roil the financial markets with JPM losing another 9.28% on Friday's session. Financial stocks led the S&P500 to a two month low despite stronger consumer confidence data which hit a four year high
The political stalemate in Greece rolls on with the heads of the major parties meeting with Greek President Karolos Papoulias failing to bring an outcome
China moved to control the pace of its recent economic slowdown by cutting the amount of cash banks must set aside as reserves
In some brighter news computer hardware maker Nvidia Corp rallied 6.4% after its sales forecast topped estimates amid stronger demand
Majors to report this week are JC Penney and Home Depot on Tuesday, Limited Brands and Target on Wednesday and Wal-Mart on Thursday
DOW –0.27%, S&P500 –0.34%, NASDAQ 0.01%
USD made four month highs against the EUR on Greek fears
Gold continues to trade at support levels around the USD1580.00 level while Crude was softer late on Fridays session making a USD95.56 low

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US stocks were weaker again overnight with the Dow extending its losses to its sixth session in a row. This marks the longest losing streak in the Dow since August of last year. Markets continue to fret about the potential outcomes in Greece as the country struggles to reach a political outcome after recent elections
The volatility in the market continued to rise overnight with the CBOE Volatility Index breaking through 20.0 again overnight
News Corp rallied after the close after it reported stronger earnings and profit. News reported a 47% rise in Q3 net income or 38c p/s
Cisco Systems fell 8.3% to close at $18.78 in extended trade after forecasted earnings were weaker than expected. This is despite the company beating quarterly earning estimates overnight
DOW –0.75%, S&P500 –0.67%, NASDAQ –0.39%
The USD Index traded to 8 week highs. AUD is flirting with parity
Gold is trading below USD1600.00 and Oil fell for the 6th day in a row

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Renewed concerns in Greece have pushed markets lower overnight as an inconclusive election leaves the countries political parties scrambling to form a workable coalition with the chase of Greeks returning to the polls likely
The S&P500 flirted with the technically important 1350.00 level for most of the session before rallying to close above. Leading the losses on the S&P were the consumer discretionary, financial and commodity sectors with eight of the ten sectors finishing in the red
In company news EA Games fell 4.3% as forecasts fell short of estimates. McDonalds also retreated 2.1% after April sales fell short of estimates
Leading the moves in the Dow was HPQ, BAC, MCD and CSCO each falling 2.30%, 2.14%, 2.05% and 1.94% respectively
DOW -0.59%, S&P500 -0.43%, NASDAQ -0.39%
The Australian Budget was released last night with cuts to defence, foreign aid, tightening of Medicare and increased taxes allowing for more benefits to families and a small surplus of AUD1.5 Billion for next year
EURUSD was lower as Greek political unrest pushed the pair below 1.3000
Gold fell heavily, falling to a USD1595.26 low. Oil bounced late off lows

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Despite political uncertainty in Europe, US markets managed to finish the session flat with US financials trading stronger
In French elections Socialist candidate Francois Hollande won the Presidency over incumbent Nicolas Sarkozy which will further increase pressure on Germany to take a more growth orientated approach to the debt crisis that is strangling Europe
Leading the S&P500 losses was Cognizant Technologies with the IT services firm falling 19.2% after cutting its profit and revenue forecast
US financials were up with BAC and WFC rallying 2.84% and 1.42% respectively after positive comments from US investor Warren Buffet
Leading the gains on the Dow was BAC, DIS and WMT rallying 2.84%, 2.07% and 0.83%. Leading the losses was HPQ down 1.65%
DOW –0.23%, S&P500 0.04%, NASDAQ 0.05%
Euro declined on political uncertainty and the AUD held 1.0200
Gold continues to trade around US1640.00, Oil fell to 3 month lows