Some 600 balloons emblazoned with a poppy and the name of a fallen soldier flutter in the sky during the "Short Step" ceremony, to mark the 100th anniversary of the outbreak of World War One.
Stocks rose on the first day of the trading week after the market endured its worst performance in two years last week.
First, the scoreboard:
- Dow: 16,569.28, +75.9, (+0.5%)
- S&P 500: 1,938.99, +13.8, (+0.7%)
- Nasdaq: 4,383.89, +31.2, (+0.7%)
And now, the top stories on Monday:
1. The economic calendar is light this week, with just the July ISM New York report featuring on the calendar. The report came in at 68.1, better than last month's 60.5 reading, as both the prices paid and job growth sub-indices hit multi-month highs.
2. The Federal Reserve released its latest Senior Loan Officer Opinion Survey, which showed a "continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand."
3. Amid last week's sell-off and a market that continues to prepare itself for the Fed raising interest rates, high-yield bonds have made their way to front of investors' minds. Alain Bokobza and his team at Societe Generale alerted us to this chart showing the massive outflows from high-yield bond funds. The Wall Street Journal's Katy Burne also detailed some of the issues facing high yield bond investors, including liquidity concerns in the face of accelerating fund redemptions.
4. General Motors disclosed that its financing arm, GM Financial, has received a subpoena from the Justice Department related to subprime loan originations. This notice comes as many wonder about the pace of auto sales and the health of the auto lending market, which at least one analyst has said has a dark side that is leading to increasing sales and decreasing loan quality.
5. According to data from Morningstar, "Bond King" Bill Gross suffered his 15th straight month of outflows from his firm's flagship bond fund, the PIMCO Total Return Fund. Morningstar said that total assets in the Total Return Fund were down to $223 billion at the end of July from $225 billion at the end of the previous month.
6. For-profit college operator ITT Educational saw shares fall more than 40% after the company disclosed that a real estate deal that would've seen the company sell 24 parcels of land for about $120 million fell through. The failed sale is yet another blow to the company which has suffered this year, along with the broader for-profit education space, as many, including Mark Cuban, continue to predict an ugly demise for the ballooning cost of higher education.
7. McDonald's said that its sales in China and Japan are experiencing a "significant negative impact" following a scandal with a food supplier in China. The announcement from McDonald's follows a similar disclosure from Yum! Brands last month, which said that the impact from the controversy on its sales remained to be seen, but could threaten the company achieving its full-year sales goals.
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