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Morning Call: Stocks Rise On Earnings

Ndubisi Onuora




●     Asian stock indexes surged today due to strong U.S. corporate earnings and China’s commitment to improving its growth.

●     Nikkei rose 0.79 percent; KOSPI surged 1.56 percent; Shanghai Composite advanced 0.73 percent; Hang Seng escalated 1.66 percent; S'P/ASX 200 rallied 2.02 percent.


●     European stock indexes jumped today on strong company earnings from Akzo Nobel to Hermes International. Look for movements in Vanguard MSCI Europe ETF (VGK).

●     Spanish bonds prices slumped due to weaker demand. The bond yields for two-year bonds rose to 5.204 percent from 4.335 percent on June 7. Those for five-year bonds rose to 6.459 percent from 6.072 percent on June 21.


●     U.S. stock futures pointed higher as companies such as eBay and IBM reported strong earnings.


Philip Morris

●     2nd Quarter

●     Actual EPS = $1.36; Expected EPS = $1.35

●     ETF Movements

Consumer Staples Select Sector SPDR Fund (XLP)



●     2nd Quarter - 4:30 p.m. ET

●     Expected EPS = $8.75

●     ETF Movements

PowerShares Nasdaq Internet Portfolio (PNQI)

Morgan Stanley

●     2nd Quarter

●     Actual EPS = $0.28; Expected EPS = $0.43

●     ETF Movements

○     PowerShares KBW Capital Markets Portfolio Profile (KBWC)


●     2nd Quarter - 8:30 a.m. ET

●     Expected EPS = $0.64

●     ETF Movements

Vanguard Telecommunication Services ETF (VOX)

iShares Dow Jones U.S. Telecommunications Index Fund (IYZ)


●     2nd Quarter - 5:30 p.m. ET

●     Expected EPS = $0.63

●     Expected ETF Movements

S'P North American Technology-Software Index Fund (IGV)

Dow Jones US Technology Index Fund (IYW)

PowerShares QQQ Trust (QQQ)

Technology Select Sector SPDR Fund (XLK)



All commodities news is as of 7:30 a.m. ET.


Gold and Silver Surged

●     Gold rose 0.92 percent, or $14.48, to $1588. Expect increases in SPDR Gold Shares (GLD), the physical bullion ETF.

●     Silver elevated 1.18 percent, or $0.32, to $27.51. Expect growth in the iShares Silver Trust (SLV).


WTI and Brent Oil Advanced

●     The August contract for WTI crude oil jumped 1.26 percent, or $1.13, to $91 per barrel.

●     The September contract for Brent crude oil rose 1.62 percent, or $1.70, to $106.86 per barrel.

●     Expect growth in both the United States Oil Fund (USO) and in the United States Brent Oil Fund (BNO).


Fund Flows
On Wednesday, July 18, 2012, the top ETF in nominal inflows was the SPDR S'P 500 ETF (NYSEArca:SPY, with creations of $309.1 million. The top ETF in nominal outflows was the iShares Barclays 1-3 Year Treasury Bond Fund (SHY), with redemptions of $169.0 million.



ETF Launches

ProShares rolls out two funds focused on the Aussie dollar that both cost 0.95 percent a year:

  • ProShares Ultra Australian Dollar ETF (NYSEArca:GDAY)
  • ProShares UltraShort Australian Dollar ETF (CROCF)

PowerShares rolls out a technicals-focused equities ETF targeting small-cap U.S. stocks:

  • Portfolio PowerShares DWA SmallCap Technical Leaders Portfolio (NYSEArca:DWAS).


ETF Filings

None as of today.


Economic Calendar


●     Jobless Claims - 8:30 a.m. ET

●     Bloomberg Consumer Comfort Index - 9:45 a.m. ET

●     Existing Home Sales - 10:00 a.m. ET

●     Philadelphia Fed Survey - 10:00 a.m. ET

●     Leading Indicators - 10:00 a.m. ET

●     Fed Balance Sheet - 4:30 p.m. ET

●     Money Supply - 4:30 p.m. ET



●     Switzerland

Merchandise Trade Balance - 2:00 a.m. ET

●     UK

Retail Sales - 4:30 a.m. ET


●     Japan

All Industry Index - 12:30 a.m. ET


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