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Stalemate In Washington

Discussion in 'Forex Daily News & Outlook' started by MTnews, Jul 27, 2011.

  1. MTnews

    MTnews Content Contributor

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    Daily Market Commentary for July 27, 2011

    House Speaker John Boehner abruptly delayed vote scheduled for today. (read more at Millennium-Traders.Com) http://www.millennium-traders.com/news/newscommentary.aspx

    Durable Goods Orders released this morning by the Commerce Department helped to fuel the fire. Over the past three months, Durable Goods Orders hit the second largest drop. This data indicates concerns that manufacturing is slowing down. Additional data included the fact that not only was a decline in orders in June followed a revised 1.9% rise in May and a 2.5% drop in April. Excluding-transportation has stability and Durable Goods Orders excluding automobiles and planes rose 0.1% in June after a 0.7% gain in May. In June for the 2nd straight month, shipments of Durable Goods rose 0.5%. In June for the 18th straight month, inventories of Durable Goods rose 0.4%. Orders were seen declining in motor vehicles, civilian aircraft and military planes. The biggest gain since December was seen for Orders of fabricated metals by 2.1% and computer equipment by 15.2%. Computer orders fell 0.8% and orders for machinery fell 2.3% in June. Non-defense capital equipment Orders, excluding aircraft, fell 0.4% after a rise in May by 1.7%. Such core capital-goods orders are considered the best gauge of capital spending by businesses. Data that feeds directly into calculations of GDP, shipments of core capital goods rose 1% during June. Other orders for June - electronics, excluding semi-conductors, rose 0.2%; primary metals rose 1%; electrical equipment rose 0.4% and defense capital goods fell 3.9%, while excluding defense orders fell 1.8%.

    Fed Beige Book data released today - which is based on information collected on or before July 15 - shows soft labor markets and weak real estate offset a slight boost to consumer spending which indicates an encouraging start to the tourism season. Additionally, data indicates growth has slowed in majority of districts, particularly those nearest the Atlantic seaboard, with the Minneapolis district hurt by the now-concluded state government shutdown.

    Swedish Automobile NV (SWAN.AE), the Netherlands-listed owner of troubled car maker Saab Automobile, has 14 days to pay their workers or risk bankruptcy. The general counsel at labor union Unionen issued the report after the cash-starved company failed to pay employees on time. This is the 2nd consecutive month that Saab has been unable to pay employees on time. Wages were paid last month after Saab secured EUR13 million in short-term funding by selling 582 cars to a Chinese company. Unionen's Martin Wastfelt said, "We're not doing this because our members want to see Saab Automobile bankrupt, we're doing this to guarantee their income and make sure they can take part in the state wage fund." In April, production was halted due to a lack of components after suppliers that hadn't been paid stopped delivering parts. The Swedish enforcement authority reported they had received demands for debt collection from Saab Automobile totaling 5 million Swedish kronor ($794,000) from three different companies. Hans Ryberg, head of the collection department at the enforcement authority, said he expects further requests from Saab Automobile's creditors in the coming days. Saab Automobile has possibly up to three weeks to pay the SEK5 million, or the enforcement authority will start seizing assets. Provided supplier problems are resolved, Saab expects to restart production August 29.

    WellPoint (NYSE: WLP) shares were lower by 5% into early afternoon trading, after the managed-care provider reported higher-than-expected costs in its Medicare Advantage business.

    Emerson Electric (NYSE: EMR) shares were down 7% into early afternoon trading after they warned a slowing economy could cut into it sales.

    C.H. Robinson Worldwide (NasdaqGS: CHRW) shares were lower by 7% into early afternoon trading after they missed Q2 profit expectations.


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