Homebuilders Lead the Charge

Minyanville Staff
July 9, 2013

This morning, the International Monetary Fund cut its 2013 growth forecast for the US to 1.7% from 1.9%. The IMF's global 2013 forecast was also lowered from 3.3% to 3.1%. US markets rallied on the day ahead of tomorrow's Fed minutes release and Ben Bernanke's speech. The S&P 500 (^INX) finished the day up 0.7%.

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SPDR S&P Homebuilders ETF (XHB) outperformed by a significant margin after CoreLogic reported sharply falling foreclosures in May.

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The 10-year yield finished down 2 bps to 2.63%. Crude continued to push higher, finishing up 0.5% to $103.63, and hitting levels not seen since May 2012. Gold climbed for a second straight day, closing 0.74% higher at $1,245/oz.

Alcoa (AA) reported earnings after yesterday's close, beating analyst estimates on both the top and bottom lines.

Ratings agency Standard & Poor's downgraded Italy's long-term credit rating from BBB+ to BBB. S&P's long-term outlook for the country is negative. The downgrade came after the European market close, during which the FTSE MIB Index (INDEXFTSE:FTSEMIB) traded slightly in the red.

The Nikkei 225 (INDEXNIKKEI:NI225) finished up 2.6% ahead of tomorrow's announcement from the Bank of Japan.

Tomorrow's Financial Outlook

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US wholesale trade data will be released at 10:00 a.m. EDT tomorrow morning. The consensus is to see month-over-month growth of 0.3%. The EIA petroleum status report will be released at 10:30 a.m. EDT .

The minutes from the last Fed meeting will be released at 2:00 p.m. EDT tomorrow . Chairman of the Fed, Ben Bernanke, will be speaking tomorrow after the market closes.

The Bank of Japan will make an announcement regarding its monetary policy tomorrow . The target interest rate is not expected to change.

Tomorrow , Family Dollar Stores (FDO), Supervalu (SVU), and Yum Brands (YUM) will release earnings.

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