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Binary Options Daily Analysis – Asia and Europe Rally, US Ends Mixed

Equities
Following the West’s lead on Wednesday, Asian markets rallied on Thursday. The Nikkei gained .8% to 8877, as financial stocks led the gains. Sharp tumbled 16% to a 31-year low after warning of a record loss for the upcoming year. The Kospi climbed 1.3%, as LG Electronics advanced 7.4%, posing its 9th straight gain. In China, the Hang Seng and the Shanghai Composite both soared 2%, while Australia’s ASX 200 advanced 1%.

European markets posted modest gains, led by materials stocks, which posted a gain of 2.7%. The DAX rose .6%, the CAC40 edged up .3%, and the FTSE ticked up .1%

Mining group, Xstrata, soared 9.9% after confirming it was involved in merger talks with commodity trader, Glencore. Glencore shares surged 6.9%.

US stocks ended mixed as traders prepared for Friday’s job report. The Dow slipped 11 points to 12705, the Nasdaq advanced .4%, and the S&P 500 edged up .1%.

Mastercard shares jumped 6.7% after profits exceeded analyst estimates for the 7th quarter in a row.  Abercrombie and Fitch tumbled 13.7% after releasing weak sales data for the holiday season, and slashed their outlook for the coming year.

Treasuries and Commodities
US bonds closed mixed after dropping on Wednesday. 10-year notes inched up 2/32 to yield 2/32, while 30-year notes declined 9/32 to yield 3.01%.

The wild ride in natural gas continued, as the energy commodity surged 6.6% to 2.545. Crude oil fell 1.1% to 96.55, and gasoline slid .5% to 2.8771.

Metals traded mostly higher, as silver climbed 1.5% to 34.325, and gold gained .7% to 1761.90. Bucking the uptrend, copper shed 1.5% to 3.7855.

Currencies
Currencies traded in narrow ranges, with the Dollar moving up slightly. The Euro and Swiss Franc both slipped .2% to 1.3149 and 1.0912 respectively, and the Pound lost .3% to 1.5807. The Yen and Australian Dollar closed flat.

Economic Outlook
Weekly jobless claims fell to 367K, 6K better than forecast. Labor costs rose more than expected, while productivity increased less than expected, both positive developments for the employment situation.

Friday’s key report will be January’s non-farm payroll data. Economists are expecting a gain of 150K jobs, down from last month’s 200K gain. The unemployment rate is expected to remain at 8.5%. Also due are the ISM non-manufacturing index, and factory orders.

Earnings are due from Clorox, Tyson Foods, and Weyerhaeuser.

-Bradley Welcher

Binary Options Daily Analysis – Western Stocks Rally, Boosted by Positive Data

Equities
Asian markets ended mixed after conflicting data from China failed to provide direction. The official PMI data pointed to an expansion in manufacturing, while HSBC PMI data indicated a mild contraction. The Shanghai Composites slumped 1.1%, the ASX 200 dropped .9%, and the Hang Seng dipped .3%. Amongst the gainers, the Nikkei inched up .1%, and the Kospi edged up .2%. Korean builders soared, as Samsung Engineering and Hyuandai Engineering both gained nearly 5%.

European markets rallied strongly, supported by upbeat economic news from Germany and the US. The DAX surged 2.4%, the CAC40 climbed 2.1%, and the FTSE jumped 1.9%. Banking shares rebounded 3.8% on news a Greek debt deal was imminent.

US stocks climbed as well. The Nasdaq outperformed, closing up 1.2%, followed by the S&P 500, which rose .9% to 1324. The Dow rose 84 points to 12716, ending its 4-day slide.

Amazon shares tumbled 7.7% after the company reported a sharp drop in revenue, and lowered its outlook. Whirlpool shares surged 13.5% after issuing a strong outlook, and Broadcom jumped 8.1% after beating analyst profit forecasts.

Treasuries and Commodities
Bonds snapped their 5-day winning streak, as signs of global growth reduced the appeal of treasuries. 10-year notes eased 9/32 to yield 1.83%, and 30-year notes fell 1 5.32 to yield 2.99%.

Oil inventories rose more than expected, pressuring the energy sector. Crude oil declined 1% to 97.47, natural gas tumbled 4.8%, and gasoline eased .2% to 2.8866.

In contrast, metals rallied, led by platinum’s 2.2% rally to 1623.30. Silver gained 1.5% to 33.775, copper rose 1%, and gold closed up .4% at 1747.20.

Currencies
The Dollar settled modestly lower against global currencies. The Euro rose .5% to 1.3156, recovering from an earlier drop down to 1.3028. The Australian Dollar settled up .7% to 1.0698, while the Pound and Swiss Franc advanced .4%. The Canadian Dollar broke through the parity level, gaining .3% to .9988, and the Yen inched up .1% to 76.22.

Economic Outlook
Wednesday’s ADP Employment report showed the economy gained 170K jobs last month, falling short of expectations of 189K, but still a very respectable figure. The official government non-farm payroll report will be released on Friday.

Construction spending rose by 1.5% last month, more than forecast, and auto sales unexpectedly jumped to an annualized rate of 14.2M, up from last month’s 13.6M reading.

Manufacturing PMI data from Germany rose to 52.1, significantly better than the 50.1 forecast.

Thursday’s data will include weekly unemployment claims, productivity & labor costs, and chain store sales.

Earnings are due from Beazer Homes, Boston Scientific, Cigna, Deutsche Bank, International Paper, Kellogg’s, Merck, Sony, Take Two and Unilever.

-Bradley Welcher

 

Binary Options Daily Analysis – January Closes Quietly as Stocks Post Large Monthly Gains

Equities

Asian markets advanced moderately on Tuesday. The Kospi climbed .8% to 1956, the Hang Seng rallied 1.1%, and the Shanghai Composite added .3% to 2293. Lagging behind, the Nikkei inched up .1% to 8803, while the ASX 200 slipped .2%.

European markets gained as well, despite weaker than expected data from the US. The CAC40 posted a solid 1% gain, while the DAX and FTSE rose a modest .2%. Hopes lingered on for a Greek debt deal, while pressure mounted on the heavily-indebted country to undertake steep spending cuts.

US stocks closed little changed, overcoming earlier losses. The Dow slipped 21 points to 12634, the S&P 500 closed flat at 1312, and the Nasdaq gained 2 points to 2814. Nonetheless, January was an extremely strong month for stocks, as the Dow climbed 3.4%, the S&P 500 advanced 4.4%, and the Nasdaq soared 8%.

RadioShack tumbled 30% after issuing a profit warning, dropping to a 3-year low. Mattel advanced 5% on strong earnings, while UPS slipped .7% despite exceeding analyst forecasts.

Treasuries and Commodities
US bonds extended their rally to 5 straight days. 10-year notes gained 15/32 to yield 1.79%, and 30-year notes advanced 1 8/32 to yield 2.94%.

Commodities traded mixed, with no clear direction even within market sectors.

Natural gas plunged 8.7% to 2.477, as the resource continues to swing wildly almost daily. Crude oil eased .3% to 98.46, while gasoline gained .7% to 2.8939.

Gold rose .4% to 1741.50, while silver skidded 1% to 33.20, copper dropped .9% to 3.794.

Currencies
The Dollar was mixed as US growth concerns weighed against European debt troubles. The Euro ticked down .4% to 1.3080, and the Swiss Franc shed .3% to 1.0864. The Pound and Australian Dollar both gained .3% to 1.5760 and 1.0617 respectively, and the Yen rose .2% to 76.22.

Economic Outlook
Tuesday’s sobering economic data reawakened doubts over the pace of the US economic recovery. The Case Shiller home price index fell by 3.7%, significantly worse than last month’s 3.4% drop. Chicago PMI dropped to 60.2 from 62.5. Consumer confidence slumped to 61.1 from 64.8, whereas analysts had expected an increase to 68.2.

Wednesday’s busy economic calendar will include the ADP employment report, the Challenger job-cut report, the ISM manufacturing index, construction spending, auto sales, and weekly oil inventories.

Earnings are due from Aetna, Amdocs, AOL, Electronic Arts, Hershey, Nasdaq OMX, Qualcomm and Whirlpool.

-Bradley Welcher

Binary Options Daily Analysis – Greece Debt Deal Remains Elusive, Consumer Spending Disappoints

Equities
The week opened on a soft note as Asian markets declined. The Nikkei sagged .5% to 8793, as Mitsubishi Electric tumbled 15% after the government suspended dealings with the machinery-maker, due to accusations of overcharging. The Kospi and Hang Seng skidded 1.2%, and the Shanghai Composite dropped 1.5% as trading resumed after the week-long Lunar New Year. Australia’s ASX 200 posted a modest .4% loss.

Greece failed to reach a deal with private debt holders, pressuring European indexes. Banking shares fell 3.1%. The CAC40 slumped 1.6%, the FTSE fell 1.1%, and the DAX lost 1%. French Banks bore the brunt of the selling, as BNP Paribas, Societe Generale, and Credit Agricole each fell at least 6.5%. Yields on Portuguese debt continued to climb, amid mounting concerns that the country may need another bailout.

US stocks opened sharply lower, but they recovered most of their losses by the close. The Dow eased a mere 7 points to 12654, after falling as much as 130 points in the first hour of trading. The S&P 500 fell .3% to 1313, and the Nasdaq declined .2%.

Bank of America dropped 3% after Goldman Sachs downgraded the stock to “neutral” from “buy”. Goldman Sachs upgraded Morgan Stanley, but the stock still fell 1.9%.

US Airways surged 4.2% on rumors Delta may make an offer to buy the company.

Treasuries and Commodities
European debt concerns helped lift bonds for their 4th straight day. 10-year notes gained 13/32 to yield 1.85%, and 30-year notes rallied 1 5/32 to yield 3.00%.

Commodities fell across the board. In energy, natural gas tanked 2.7% to 2.683, gasoline fell 2% to 2.869, and crude oil slipped .7% to 98.84.

Copper fell 1.5%, leading metals lower. Silver sank 1.1% to 33.435, and gold eased .3% to 1727.30.

Currencies
The Yen soared 1.4% to 76.34, a 3-month high, while the Dollar traded modestly lower against most other currencies. The Euro ticked up .2% to 1.3130, the Swiss Franc advanced .3% to 1.0896, and the Pound edged up 8 pips to 1.5701. The Australian Dollar eased .3% to 1.0596, as a drop in commodity prices weighed on the currency.

Economic Outlook
Personal income rose by .5% last month, slightly more than expected, but personal spending, which is considered more important, remained flat, falling short of forecasts for a .2% increase.

Tuesday’s reports will include the Case-Shiller home price index, Chicago PMI, employment cost index, and consumer confidence.

Tuesday’s star-studded earnings lineup will include reports from Amazon, Archer Daniels Midland, Broadcom, Eli Lilly, ExxonMobil, Level 3 Communications, Mattel, Pfizer, UPS, and Valero Energy.

-Bradley Welcher

Binary Options Daily Analysis – US GDP Improves, by Falls Short of Forecasts

Equities
Asian markets traded mostly higher on Friday. The Kospi advanced .4% to 1965, a 6-month high, boosted by Samsung’s record profits. Similarly, the ASX 200 gained .4%, as a rebound in metal prices lifted miners. The Nikkei eased a mere .1% to 8841, despite steep losses from NEC, Nintendo, and Elpida Memory. The Hang Seng closed flat, while China’s Shanghai Composite remained closed for the Lunar New Year.

Disappointing GDP data from the US weighed on European shares in the afternoon. The CAC40 fell 1.3%, the FTSE lose 1.1%, and the DAX slipped .4%.

US GDP grew at 2.8% in the fourth quarter, the fastest pace in nearly 2 years. The data was slightly below the 3% expected by analysts, but far better than last quarter’s 1.8% growth.

US indexes settled mixed, as the Dow lost 74 points to 12660, and the S&P 500 slipped .2%, while the Nasdaq gained .4%. Several disappointing earnings reports weighed on stocks. Dow-component, Chevron, fell 2.5% after reporting earnings that fell short of forecasts. Ford sank 4.2% on weak earnings, and Juniper Networks dropped 3% after issuing a weak outlook.

A report in the Wall Street Journal said Facebook may file for an IPO as soon as next week.

Treasuries and Commodities
Bonds rallied for a 3rd day. 10-year notes gained 11/32 to yield 1.89%, and 30-year notes advanced 20/32 to yield 3.06%.

Crude oil dipped .1% to 99.56, while the rest of energy rallied. Natural gas surged 3.8% to 2.756, and gasoline climbed 2.8% to 2.9268.

Gold ticked up .3% to 1732.30, and silver edged up .1% to 33.79. Copper posted a slight loss of .3%, settling at 3.889.

Currencies
The Dollar sank against global currencies, as the disappointing GDP data pressured the greenback. The Euro and Swiss Franc advanced .9% to 1.3220 and 1.0958 respectively. The Yen jumped 1% to 76.68, reversing its losses from earlier in the week. The Pound and Australian Dollar both edged up .3%.

Economic Outlook
Consumer Sentiment rose to 75 from last month’s 74, more than expected.

Monday’s economic calendar will include data on Personal income & spending, and the Dallas Fed manufacturing index.

Earnings are due from Acer, Baidu, Graco, and Wendy’s.

-Bradley Welcher

Binary Options Daily Analysis – European Shares Rally on Hopes for Greek Debt Plan

Equities
Asian markets traded mostly higher, encouraged by the Fed’s commitment to keep interest rates unchanged through 2014. The Hang Seng soared 1.6% as Hong Kong’s markets returned from the Lunar New Year Holiday, although volume was light, since China’s markets will remain shut until Monday. The Kospi edged up .3% despite weak 4th quarter GDP data. Meanwhile, the Nikkei skidded .4% to 8849, and markets in Australia were closed

European markets posted strong gains on hopes that Greek debt negotiations were progressing. The DAX surged 1.8%, the CAC40 climbed 1.5%, and the FTSE gained 1.3%. Shares in retailer, Carrefour, jumped 7.5% on rumors of a change in management, and Nokia shares rallied 3.1% on strong earnings data.

US stocks pared early gains to close lower. The Dow slipped 22 points to 12735, the Nasdaq dropped .5%, and the S&P 500 fell .6%.

Netflix shares surged 22% to 116.01 after announcing subscriber growth which exceeded forecasts. AT&T fell 2.5% on weaker than expected profits.

Treasuries and Commodities
Bonds rallied, with 10-year notes up 16/32 to yield 1.94%, and 30-year notes up 1 4/32 to yield 3.09%.

Portuguese debt yields hit record highs amid growing expectations that the country will be unable to meet its obligations. 5-year notes rose to yield an outrageous 20.25%, while 10-year notes yielded 15.2%.

Crude oil rose .5% to 99.87, and gasoline futures climbed .6% to 2.8505. Natural gas plummeted 5% to 2.592 as the wild daily swings continued.

Metals advanced, led by copper, which posted a 1.5% gain to 3.885. Gold rose 1.2% to 1720.40, and silver closed up .7% at 33.355.

Currencies
Currencies traded in narrow ranges, as the dollar fell modestly. The Australian dollar, Japanese Yen, and Canadian dollar all gained .3%, and the Pound edged up .2% to 1.5691. The Euro inched up 6 pips to 1.3106, while the Swiss Franc rose .2% to 1.0865.

Economic Outlook
Thursday’s economic data was mixed. Weekly jobless claims were 6K more than expected, rising to 371K from last week’s 351K reading, and new home sales fell to 307K from last month’s 314K. On the bright side, durable goods orders rose 2.1%,, and core durable goods order jumped by 3%, both better than forecast.

Friday’s reports will include advance GDP, which is expected to indicate growth of 3%. Also due is consumer sentiment from the University of Michigan.

Friday’s earnings report schedule will include Altria, Amgen, Chevron, Ford, Honeywell, Procter & Gamble, and T Rowe Price.

-Bradley Welcher

Binary Options Daily Analysis – Fed Pledges to Keep Rates Steady Until 2014

Equities
Outstanding earnings from Apple on Tuesday evening helped propel Asian markets higher on Wednesday. The Nikkei rallied 1.1% to 8840, as a drop in the Yen boosted exporters such as Sony, which surged 4.8%. The ASX 200 climbed 1.1%, and the Kospi inched up .1%. Markets in China and Hong Kong remained closed for the Lunar New Year.

Concerns over Greek’s debt situation pressured European banks, sending the FTSE down .5% and the CAC40 down .3%. Nonetheless the DAX managed a slight gain. The European mobile sector fell after Ericsson missed profit forecasts.

US stocks advanced in the afternoon, thanks to a commitment from the Fed not to raise interest rates for at least 2 years. Tech shares led the advance, as the Nasdaq gained 1.1% to 2818. The Dow rose 83 points to 12759, and the S&P 500 closed up .9%.

Apple shares surged 6.2% to 446.66 after reporting earnings which exceeded analyst forecasts. 15 brokerage firms raised their targets on the stock, which settled at an all time closing high.

AMD gained 3% after beating estimates for earnings, although revenue fell short of forecasts.

Treasuries and Commodities
Bonds snapped their losing streak, as fears of interest rate hikes were dispelled by the Fed. 5-year notes jumped 15/32 to yield .80%, and 10-year notes gained 17/32 to yield 2.00%. In Europe, German bonds rallied, with 10-year notes up .435 and 30-year notes up 1.165.

Wild swings continue to dominate natural gas’s price chart. On Wednesday, natural gas soared 7.4% to 2.74. Gasoline climbed 1.5% to 2.846, and crude oil rose .9% to 99.86.

Metals posted impressive gains, led by silver’s attention-grabbing 4.1% gain. Gold soared 2.8% to 1711.30, and copper rose 1.3% to 3.8565.

Currencies
The Australian Dollar jumped 1.2% to 1.0606, as the US Dollar fell against its peers. The Euro and Canadian Dollar both rose .6% to 1.3115 and 1.0039 respectively, and the Pound gained .3% to 1.5670. The Yen eased fractionally to settle at 77.72, and the Swiss Franc advanced .7% to 1.0858.

Economic Outlook
Pending home sales fell 3.5% in December, following November’s 7.3% advance. On the plus side, the OFHEO home price index rose by 1%, more than expected.

Thursday’s economic calendar will include durable goods, weekly jobless claims, new home sales, and leading indicators.

Earnings are due from many major companies including AT&T, Bristol-Myers, Caterpillar, 3M, Juniper, JetBlue, Maxim, Motorola Mobility, Raytheon, Starbucks, and Time-Warner Cable.

-Bradley Welcher

Binary Options Daily Analysis – European Officials Reject Greek Debt Deal

Equities
In Asia, markets in Korea, China, and Hong Kong remained closed for the Lunar New Year. The Nikkei rose .3% to 8985, as Elpida Memory soared 4% on hopes for a successful merger with Micron Technology. The ASX 200 closed flat, surrendering earlier gains.

European shares declined as hopes for a Greek debt deal began to fade, after finance ministers rejected an offer from private debt holders. The FTSE and CAC40 fell .5%, and the DAX eased .3%, despite an upbeat PMI report which rose to its highest level in 4 months.

In the US, the major indexes closed mixed. The S&P 500 snapped its 5-day winning streak, slipping .1%, while the Dow ticked down 33 points to 12676. The Nasdaq posted a modest .1% rise.

Travelers’ shares fell 3.8% after reporting earnings which were weaker than expected. Texas Instruments reported chip sales that beat expectations, but the shares still fell 2%.

Treasuries and Commodities
Bonds extended their losing streak to 5 straight days, with 10-year notes down 1/32 to yield 2.05%, and 30-year notes down 7/32 to yield 3.14%.

In energy, natural gas climbed 1% to 2.551, gasoline advanced 1.2% to 2.8121, while crude oil slipped .4% to 98.15.

Metals traded mostly lower. Gold dropped .7% to 1665.90, and silver lost 1% to 31.96. Copper managed a modest .3% gain to 3.81.

Currencies
The Dollar traded mixed against world currencies, as traders paid little mind to the disappointing news from Greece. The Yen slumped 1% to 77.72 against the dollar, and the Australian dollar declined d.5% to 1.0477, while the Pound rose .3% to 1.5616. The Euro inched up 7 pips to 1.3026, and the Canadian Dollar edged up .1% to 1.0100.

Economic Outlook
The Richmond manufacturing index blew past forecasts, surging to 12 from last month’s reading of 3. Analysts had expected the index to rise to 6.

Wednesday’s economic data will include the OFHEO home price index, pending home sales, weekly mortgage applications, and weekly oil inventories.

In the afternoon, the Fed will issue its rate statement and hold a press conference.

Wednesday’s heavyweight earnings schedule will include reports from Abbott, Boeing, Citrix, Corning, Etrade, General Dynamics, Hess, Motorola, Netflix, Sandisk, Symantec, United Technologies, and Xerox.

-Bradley Welcher

Binary Options Daily Analysis – Commodities Gain, Dollar Slips on Greek Debt Hopes

Equities

Many Asian markets were closed on Monday for the Lunar New Year. In Japan, the Nikkei closed flat at 8766, and Australia’s ASX 200 slipped .3% as miners fell.

European markets advanced on news that Greece was close to reaching a deal with debt holders. The FTSE climbed .9%, while the CAC40 and DAX gained .5%. The European banking index surged 3.9% amid rumors that France and Germany were calling for a relaxation of capital requirements.

US markets closed mixed in light trading. The Dow and Nasdaq declined .1%, while the S&P 500 edged up fractionally.

Research in Motion tumbled 8.5% after the company’s CEO resigned over the weekend.

Treasuries and Commodities
Bond prices continued to fall, dropping for a fourth straight session. 10-year notes slipped 11/32 to yield 2.07%, and 30-year notes fell 28/32 to yield 3.14%.

Natural gas soared 9% to 2.554 in a powerful bounce following the recent collapse in prices. Crude oil gained 1.55 to 99.88.

Silver jumped 2% to 32.30, copper climbed 1.7% to 3.8085, and gold advanced .8% to 1676.50.

Currencies
The Euro crossed back above 1.30 to 1.3031, up .7% amid hopes for a Greece debt deal. Similarly, the Swiss Franc gained .8% to 1.0792. Both the Australian and Canadian Dollar rose .5%, while the Yen and Pound settle little changed.

Economic Outlook
Tuesday’s lone report is the Richmond manufacturing index, which is expected to rise from 3 to 6. The Fed will begin their 2-day meeting on Tuesday.

President Obama’s State of the Union address will take place in the evening.

Earnings are scheduled for Apple, AMD, Coach, McDonald’s, Travelers, Verizon and Yahoo.

-Bradley Welcher

Daily Analysis – Asia Rallies, Western Markets end Mixed

Equities
Asian markets advanced on Friday, shrugging off a weak PMI report from China. The Nikkei rallied 1.5% to 8766, and the Kospi surged 1.8%, both settling at their highest close in months. The Shanghai Composite climbed 1% to 2319, and the Hang Seng gained .8% to 20110, reaching a 3.5 month high as it crossed back above the 20000 mark. Australia’s ASX 200 lagged slightly behind, rising .6%.

In Europe, stocks closed slightly lower, but closed higher for the week. The FTSE, DAX, and CAC40 all eased .2%,

US stocks ended mixed as investors reacted to a heavy dose of earnings news. The Dow rallied 97 points to 12720, the S&P 500 gained .1%, while the Nasdaq closed down fractionally. The VIX tumbled 8% to 18.28.

Google shares tumbled 8.4% to 586, after falling short of analyst estimates. The company had beaten estimates on revenue for 8 straight quarters.

Microsoft and IBM shares advanced on solid earnings reposts, gaining 5.7% and 4.4% respectively.

Talbots shares rocketed up 18.6% on takeover rumors.

Treasuries and Commodities
Bonds fell for a 3rd straight day, with 10-year notes down 13/32 to yield 2.02%, and 30-year notes down 1 4/32 to yield 3.10%.

Natural gas managed to break its losing streak, rising .9% to 2.343. Crude oil slumped 2.2% to 98.33, and gasoline decline 1.1% to 2.7844.

Metals closed mixed as well. Silver surged 3.8% to 31.675, and gold gained .6% to 1664, while copper fell 1.5% to 3.745.

Currencies
The Pound advanced .6% to 1.5574, thanks to upbeat retails sales data which showed a gain of .6%, after last month’s .5% decline. The Australian Dollar rallied .7% to 1.0494. The Euro slipped .3% to 1.2935, settling in the middle of its daily range, while the Yen ticked up .1% to 77.03.

Economic Outlook
Existing home sales rose by 5% to an annualized rate of 4.61M, up from last month’s 4.39M reading, but fell slightly short of analyst forecasts.

No major economic reports are due on Monday.  Earnings are due from Halliburton, Texas Instruments, VMWare, and Western Digital.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Gain on IMF Hopes, Kodak Files for Bankruptcy

Equities
Asian markets rallied to their highest level in more than a month, following news the IMF is hoping to raise $600 billion in funding to help tackle the euro debt crisis. The Nikkei gained 1% to 8640, the Kospi jumped 1.2%, and the Hang Seng rallied 1.3%. China’s Shanghai Composite climbed 1.3%, nearly erasing Wednesday’s 1.4% drop. Australia’s ASX 200 lagged the region, easing .1%, as employment data showed an unexpected drop of 30K jobs in December.

France’s CAC40 soared 2% to 3329, as European indexes traded higher, following strong bond auctions in Spain and France. The DAX gained 1%, and the FTSE rose .7%, as European banks rocketed up 7.4% on hopes the IMF will help address the ongoing debt crisis.

US stocks posted moderate gains, thanks to positive economic and earnings news. The Dow rose 45 points to 12624, the Nasdaq rallied .7%, and the S&P 500 gained .5% to 1314.50.

Morgan Stanley shares jumped 5.4% after the company beat earnings forecasts, even though the company reported a decline in revenue to a legal settlement.

Kodak filed for bankruptcy, and the company said it had received a $950 million credit facility from Citigroup to keep the company operating.

Treasuries and Commodities
Bonds continued to drop, with 10-year notes down 23/32 to yield 1.98%. 30-year notes fell 1 21/32 to yield 3.04%.

Natural gas plunged another 6.8% to 2.304, as the recent selloff continued. Crude oil eased .2% to 100.39, despite an unexpected drop in oil inventories.

Copper rallied 1.6% to 3.8105, while gold edged down .3% to 1655.50. Silver settled at 30.525, down fractionally.

Currencies
European currencies advanced, as renewed hopes for a debt solution lifted the region. The Euro and Swiss Franc gained .8%, and the Pound rose .4% to 1.5484. The Yen fell .4% to 77.12, while the Australian Dollar closed down .1% to 1.0412.

Economic Outlook
Weekly unemployment claims dropped to 352K, vastly exceeding analyst expectations of 387K. CPI was flat, while core CPI rose .1%, in line with forecasts. On a weaker note, housing starts fell to 660K, 30K short of forecasts.

Friday’s single report will be existing home sales, which are expected to rise to 4.65 million.

Earnings are scheduled for GE, Schlumberger, and Comerica.

-Bradley Welcher

Binary Options Daily Analysis – Housing Market Sentiment Soars to 4.5 Year High

Equities
Asian markets traded mixed on Wednesday, as doubts over Greece’s debt burden clashed with Tuesday’s cheer. The Nikkei climbed 1% to 8551, lifted by a sharp 6.6% rally in Elpida Memory on news the company is seeking a deal with Micron Technology. The Hang Seng rose .3%, to 19687, while the Kospi and ASX 200 settled little changed. The Shanghai Composite fell 1.4% to 2264, following Tuesday’s powerful 4.2% rally, the largest single-day gain in more than 2 years.

European shares traded mixed as well. The FTSE rose .2%, the DAX gained .3%, while the CAC40 eased .2%. Societe Generale shares surged 6% as Greece resumed debt negotiations, on hopes the bank’s losses due to exposure to Greek debt will be less than feared.

Upbeat data and rumors of a possible Greek-debt deal later in the week sent US stocks higher.  The Nasdaq led the advance, climbing 1.5%. The Dow rose 97 points to 12576, and the S&P 500 gained 1.1% to 1308.

Goldman Sachs surged 6.8% after beating earnings estimates, while Bank of NY Mellon sank 4.6% after reporting weak earnings.

Home builders soared, thanks to upbeat home builder sentiment index data. The index rose to its highest level since June 2007. Hovnanian closed up 12.2%, and Pulte Homes posted a 5.9% gain.

After the close, Ebay shares rose 2.4% on strong revenue growth.

Treasuries and Commodities
Bonds fell, with 10-year notes shedding 12/32 to yield 1.90%, and 30-year notes sinking 1 7/32 to yield 2.96%.

Gasoline futures rallied 2.2% to 2.8325, while crude oil posted a slight .1% gain. Natural gas slipped .4% to 2.479.

Silver climbed 1.1% to 30.45, copper rallied .8% to 3.761, and gold gained .4% to 1662.20.

Currencies
The Euro surged 1.6% as hopes for a solution to Greek’s debt woes lifted the single currency. The Australian Dollar rallied 1.2% to 1.0430, the Swiss Franc advance 1% to 1.0654, and the Pound climbed .8% to 1.5441. The Canadian Dollar posted a smaller .4% gain to 1.0112, and the Yen inched up fractionally to 76.99.

Economic Outlook
The NAHB housing market index jumped to 25 from last month’s reading of 21, blowing past analyst estimates of a rise to 22. Industrial production rose by .4%, slightly less than forecast, and PPI slipped .1%, following last month’s .3% gain.

Thursday’s economic data will include CPI, housing starts, weekly jobless claims, and weekly oil inventories.

Thursday’s impressive earnings lineup will include reports from American Express, Bank of America, BlackRock, Capital One, Google, Intel, IBM, Microsoft, Morgan Stanley, and SouthWest Airlines.

-Bradley Welcher

Binary Options Daily Analysis – Chinese GDP Better than Expected, Lifting Markets

Equities
GDP data from China showed the economy grew at 8.9% in the last quarter, better than forecast. The news sent the Shanghai Composite soaring 4.2%, despite the fact that the figure was lower than last quarter’s 9.1% growth. Across the region, stocks rallied, particularly in neighboring Hong Kong, where the Hang Seng jumped 3.2% to 19638. The Nikkei advanced 1.1% to 8466, the Kospi climbed 1.8%, and the ASX rose by 1.7%.

The upbeat sentiment continued in Europe, as the DAX rallied 1.8%, the CAC40 gained 1.4%, and the FTSE rose .7%. Automakers posted a 2.8% gain, as fear of a Chinese hard landing abated.

US stocks posted smaller gains. The Dow tacked on 60 points to 12482, the Nasdaq advanced .6%, and the S&P 500 gained .4%.

Citigroup shares tumbled 8.2% after reporting weaker than expected earnings, while Wells Fargo inched up .7% after beating estimates. Financials traded mostly lower, as the weight of Citigroup’s disappointment hit the sector.

Research in Motion surged 8% on takeover rumors, and Sears rocketed 9.5% higher amid rumors the company will be going private.

Cruise operator, Carnival, tumbled nearly 14% as the market reacted to the weekend crash of a cruise ship off the coast of Italy.

Treasuries and Commodities
Bonds edged up slightly. 10-year notes rose 2/32 to yield 1.86%, and 30-year notes rose 6/32 to yield 2.90%.

Commodities rallied almost universally. Crude oil jumped 2.2% to 100.84, and gasoline gained 1.4% to 2.7734.

Natural gas tumbled 7% to 2.483, adding to its recent plummet.

Copper climbed 2.3% to 3.72, silver gained 1.6% to 30.005, and gold rose 1.3% to 1652.60.

Currencies
A successful bond auction in Spain helped boost European currencies. The Swiss Franc rallied .8% to 1.0533, the Euro gained .6% to 1.2734, and the Pound inched up .1% to 1.5332. The Canadian Dollar edged up .3% after the Bank of Canada kept rates steady at 1%. In the Pacific region, the Australian Dollar climbed .7% to 1.0379, and the Yen closed down fractionally at 76.82.

Economic Outlook
The Empire State manufacturing index blew past expectations, rising to 13.5 from last month’s 9.5 reading, its highest level since April.

Germany’s ZEW economic sentiment indicator improved considerably from last month’s -53.8 reading, climbing to -32.5.

Wednesday’s economic reports will include PPI, industrial production, the housing market index, and weekly mortgage applications.

Earnings are scheduled for Ebay, Goldman Sachs, State Street, and US Bankcorp.

-Bradley Welcher

Binary Options Daily Analysis – European Markets Shrug Off S&P Downgrades

Equities
Over the weekend, S&P downgraded the debt ratings of 9 out of 17 euro zone countries, sending Asian markets lower on Monday. The Nikkei sank 1.4% to 8378, as the Euro-Yen (EURJPY) fell to 97.22, its lowest level in more than a decade, hurting exporters. In Korea, the Kospi shed .9%, and Australia’s ASX 200 dropped 1.2%. The Hang Seng slid 1% to 19012, while the Shanghai Composite tumbled 1.7%, largely erasing last week’s gains.

In contrast, European markets climbed, despite the wave of credit downgrades. The DAX rallied 1.3%, the CAC40 climbed .9%, and the FTSE rose .4%.   Late Monday, S&P downgraded the European Stability Fund’s credit rating by one notch, which may make it harder for the fund to obtain cheap funding.

US markets were closed for Martin Luther King Day

Treasuries and Commodities
While US bond markets were closed, German bonds traded modestly lower. 10-year notes eased .04 to yield 1.77%, and 30-year notes edged down .295 to yield 2.36%.

Natural gas tanked 4.5% to 2.55, while crude oil rose 1% to 99.69. Gasoline futures, which tend to follow crude prices, advanced 1.4% to 2.7725.

Silver led metals higher, rallying 1.4% to 29.945. Gold rose .8% to 1643.50, and copper gained 1.1% to 3.676.

Currencies
Global currencies traded in relatively narrow ranges, thanks to the US holiday. The Canadian Dollar gained .5% to 1.1081, ahead of the Bank of Canada’s rate decision on Tuesday. The Swiss Franc slipped .3% to 1.0478, the Australian Dollar eased .2% to 1.0306, and the Euro edged down .1% to 1.2664. The Yen rose .2% to 76.78.

Economic Outlook
Tuesday’s sole economic report is the Empire State manufacturing survey. Analysts are expecting the index to rise to 10.8 from last month’s 9.5 reading.

Earnings are scheduled for Checkpoint Software, Citigroup, TD Ameritrade, and Wells Fargo, along with a slew of regional banks.

-Bradley Welcher

Binary Options Daily Analysis – S&P Due to Downgrade Several European Countries

Equities

The week closed on an up note in Asia, as the region’s markets traded mostly higher. The Nikkei rallied 1.4% to 8500, the Kospi gained .6%, and the ASX 200 rose .4%. In greater China, the Hang Seng edged up .6%, while the Shanghai Composite fell 1.3%, following the release of  a report which revealed a drop in China’s foreign exchange reserves.

News that S&P was due to downgrade the credit rating of several European countries pressured the region’s markets. The FTSE lost .5%, the DAX dropped .6%, while the CAC40 edged down .1%. It is expected that France and Austria will be downgraded by one notch, while Spain and Portugal will drop 2 notches. Adding to the debt pain, a breakdown in negotiations between Greece and holders of its debt could spell major troubles for the Euro zone.

US stocks fell moderately as well. The Dow lost 49 points to 12422, while the Nasdaq, and S&P 500 shed .5%.

JPMorgan reported earnings that fell short on revenue, sending the shares down 2.5%. The negative news weighed on banking shares, sending Citigroup down 2.7%, and Morgan Stanley down 3.1%.

Treasuries and Commodities
An escalation of Europe’s debt troubles boosted demand for US debt, sending 10-year notes up 17/32 to yield 1.96%, and 30-year notes up 1 7/32 to yield 2.91%.

Commodities traded mostly lower. In energy, natural gas slumped 1% to 2.67, and crude oil slipped .4% to 98.70. Gasoline futures posted a slight gain of .1%.

Silver led metals lower, dropping 2% to 29.522. Gold sank 1% to 1630.80, and copper eased .3% to 3.637.

Selling was particularly heavy in agricultural futures. Soybeans lost 2.1%, coffee tanked 3.7%, and sugar declined 2.5%.

Currencies
The heavy dose of negative European news hit the single currency hard. The Euro fell as low as 1.2626, before recovering slightly, closing down 1.1% to 1.2680. The Yen, Pound, and Australian Dollar all declined a mere .1%, which the Canadian Dollar dropped .4% to 1.0230. The Swiss Franc eased .2% to 1.0506.

Economic Outlook
Consumer sentiment data from the University of Michigan rose to 74 from 69.9, beating estimates for 71.2. The trade deficit grew to $47.8 billion, a significant increase from last month’s $43.3 billion deficit, hitting its highest level in 5 months.

US stock and bond markets will be closed on Monday for Martin Luther King Day.

-Bradley Welcher

Binary Options Daily Analysis – Successful Debt Auctions in Spain and Italy Lift Euro

Equities
Asian markets traded mostly lower, despite a report from China which showed inflation fell to 4.1%, its lowest level in 15 months. The Shanghai Composite eased fractionally, settling at 2275. Hong Kong’s Hang Send slid .3%, rhe Nikkei lost .7%, and the ASX 200 edged down .2%. Bucking the downtrend, South Korea’s Kospi rallied 1%,

In Europe, the ECB held rates steady, and ECB chairman, Mario Draghi, said there are signs the region is stabilizing. The FTSE and CAC40 declined .2%, while the DAX rose .4%. Auctions in short-term debt in Spain and Italy were wildly successful, but their ability to sell longer term debt may prove more challenging.

US stocks posted modest gains, despite weak economic data. The Dow inched up 22 points to 12471, the Nasdaq advanced .5%, and the S&P 500 rose .2%.

Dick’s Sporting Goods soared 12.5% after announcing a buyback plan, while Williams-Sonoma tumbled 12.2% after cutting its outlook.

Treasuries and Commodities
The Treasury auctioned $13 billion in 30-year notes, with a high-yield of 2.985%, and a bid-to-cover ratio of 2.6. Bonds closed slightly lower, with 10-year notes easing 6/32 to yield 1.92%, and 30-year notes edging down 4/32 to yield 2.97%.

Energy fell, hurt by a profit warning from Chevron. Natural gas slumped 2.1% to 2.716, crude oil dropped 1.8% to 99.02, and gasoline declined 1.2% to 2.7296.

Copper jumped 2.8% to 3.6455, leading metals higher. Gold advanced .7% to 1651.10, and silver gained .8% to 30.13.

Currencies
The Euro rallied .9% to 1.2826, and the Swiss Franc gained 1.1% to 1.0595, as the successful bond auctions in Europe relieved some anxiety. The Pound and Candian Dollar both rose .1%, and the Australian Dollar settled up .3% at 1.0340.
Economic Outlook
Weekly unemployment claims jumped by 24K to 399K, hitting their highest level in 6 weeks.
Retail sales rose a mere .1% last month, a sharp drop from November’s .4% rise.

Friday’s economic reports will include international trade, import & export prices, and consumer sentiment.

Earnings are due from JPMorgan.

-Bradley Welcher

Binary Options Daily Analysis – Fitch Warns of Potential ‘Cataclysmic’ Euro Collapse

Equities
Asian markets traded mixed on Wednesday. Amongst the winners, the Nikkei edged up .3% to 8448, the ASX 200 rallied .9%, and the Hang Seng climbed .8%. On the losing side, the Kospi fell .4%, and the Shanghai Composite slipped .4%.

In Europe, stocks slipped, pressured by remarks from Fitch, saying the ECB must buy euro zone debt to prevent a collapse of the euro. The FTSE declined .5%, while the CAC40 and DAX eased .2%. UniCredit shares rallied for a second session, gaining 6%, after its recent 75% loss in value.

In the US, the Dow edged down 13 points to 12449, while the Nasdaq rose .3%. The broader S&P 500 closed flat.

Urban Outfitters tumbled 18.6% after Citi slashed the firm’s price target.

In earnings news, Supervalu dropped 12.5%, after reporting a loss which was larger than forecast. Lennar shares advanced 7.2% despite a weak profit report, thanks to a jump in new orders.

Treasuries and Commodities
Bond prices gained, as concerns over Europe’s economic health lifted the appeal of US Treasuries. 10-year notes gained 18/32 to yield 1.90%, and 30-year notes advanced 1 7/32 to yield 2.96%.

The Treasury auctioned $21 billion in 10-year notes with a high-yield of 1.90%, and a strong bid-to-cover ratio of 3.29.

Natural gas tumbled 5.4% to 2.781, as it continues its extended downtrend. Crude oil fell 1.1% to 101.09, while gasoline closed down fractionally.

Copper led metals higher, ticking up 1.2% to 3.554. Gold climbed .7% to 1643.10, and silver gained .6% to 29.995.

Currencies
European currencies fell against the Dollar. The Pound slumped 1.1% to 1.5319, and the Swiss Franc shed .5% to 1.0480. The Euro settled down .6% to 1.2706, after trading as low as 1.2662 earlier in the day. The Yen and Australian Dollar both posted minor losses, and the Canadian Dollar eased .3% to 1.0191.

Economic Outlook
Oil inventories rose by 5 million barrels, much more than the .9 million forecast. Weekly mortgage applications rose, encouraged by low interest rates.

The Bank of England and ECB will issue their rate statements on Thursday, and both are expected to keep rates steady at .5% and 1% respectively.

Thursday’s US data will include retail sales, weekly jobless claims and business inventories.

No major earnings reports are due.

-Bradley Welcher

 

Binary Options Daily Analysis – Upbeat Outlook from Alcoa Lifts Metals and Resource Stocks

Equities
Chinese stocks rallied for a second day, despite a drop in trade data, amid hopes the government would pursue a looser monetary policy. The Shanghai Composite climbed 2.7%, and Hong Kong’s Hang Seng advanced 1.8%. Australia’s ASX 200 gained 1.1%, and the Kospi settled up 1.5%. The Nikkei returned from a holiday to close up .4%, as Olympus shares soared 20% on news the company would not be delisted.

European markets surged, led by banks and materials stocks. Shares in Italy’s UniCredit jumped 7%, and the regional banking index climbed 4.5%. The CAC40 rallied 2.7%, the DAX advanced 2.4%, and the FTSE rose 1.5%. An upbeat outlook from Alcoa helped lift materials stocks by 3.4%.

US markets continued to rise, as the Dow gained 70 points to 12462, the Nasdaq climbed 1%, and the S&P 500 advanced .9%.

Cirrus Logic shares rocketed up 15.7% after raising its outlook for the quarter. Similarly, Lululemon shares rallied 12% on a stronger outlook.

On the negative side, Tiffany shares tumbled 10.5% after lowering its outlook. WebMD plunged 28.5%, after the company’s CEO resigned.

Treasuries and Commodities
US bonds eased slightly, with 10-year notes down 4/32 to yield 1.97%, and 30-year notes down 3/32 to yield 3.03%. German bond prices fell, pushing up yields. 10-year German notes fell .35 to yield 1.88%, and 30-year notes dropped .55 to yield 2.48%.

Metals powered higher, thanks to Alcoa’s outlook for stronger demand in 2012. Silver rallied 3.8% to 29.885, copper climbed 2.6%, and gold gained 1.5% to 1632.70.

Crude oil rose .8% to 102.16 and gasoline notched up a gain of .5% to 2.7737. The recent volatility in natural gas continued, as prices sank 2,8% to 2.928.

Currencies
The Dollar traded mostly lower against world currencies, as the market traded in a narrow range. The Australian Dollar and Canadian Dollar were the biggest gainers, climbing .7% to 1.0319 and 1.0168, respectively. The Euro inched up 10 pips to 1.2774, and the Pound gained .1% to 1.5478. The Yen and Swiss Franc settled little changed.

Economic Outlook
Wholesale inventories rose a mere .1%, less than the .5% forecast, which suggests buying is beginning to outstrip production. The small business optimism index rose to 47.5 from 42.8, exceeding forecasts.

Overseas, French industrial production increased by 1.1%, far better than the .1% forecast by analysts.

Wednesday’s reports will include the Fed’s Beige book, and oil inventories.

Earnings are scheduled for 99 Cent Only Stores, Lennar, and SuperValu.

-Bradley Welcher

Binary Options Daily Analysis – Global Equities Mixed, Consumer Credit Surges

Equities
Asian markets traded mixed on Monday following last week’s losses. China’s Shanghai Composite spiked 2.9%, boosted by a rise in the money supply and loan growth, and the Hang Seng rallied 1.5% to 18866. The Kospi dropped .9%, and the ASX 200 eased .1%. Japanese markets were closed for a holiday.

European markets traded lower, led by banks which fell 2.2%. The FTSE and DAX dropped .7%, and the CAC40 fell .3%. Over the weekend, Hungary’s debt rating was downgraded to junk, and Der Spiegel reported that the IMF doubts that Greece can get its finances under control.

In the US, stocks closed modestly higher. The Dow edged up .3%, the S&P 500 rose .2%, and the Nasdaq eked out a .1% gain.

Alcoa shares rallied 2.9% ahead of earnings. After the close, the aluminum maker reported a loss in line with estimates, while beating forecasts on revenue.

Netflix shares surged another 14% after launching its DVD service in the UK.

Treasuries and Commodities
Treasuries closed little changed, with 10-year notes yielding 1.95%, and 30-year notes yielding 3.02%. On Tuesday, the Treasury will auction $32 billion in 3-year notes.

A German auction for 6-month debt had a negative yield of -0.0122%.

Energy traded mixed. Natural gas slumped 1.6% to 3.013, crude oil slipped .2% to 101.34, and gasoline gained .2% to 2.7568.

Silver climbed .9% to 28.935, while gold and copper dropped .5% to 1609.60 and 3.419, respectively.

The Euro rose .4% to 1.2776, recovering from an earlier drop down to 1.2680. The Pound gained .3%, and the Swiss Franc advanced .6% to 1.0535. The Yen rose .2% to 76.84.

Economic Outlook
Consumer credit saw a massive expansion in November, climbing to $20.4 billion. Analysts had expected a gain of just $7 billion.

Tuesday’s reports will include wholesale inventories, and the NFIB small business optimism index.

-Bradley Welcher

Binary Options Daily Analysis – US Payroll Data Blows Past Expectations

Equities
Asian markets closed lower on Friday ahead of the US’s key non-farm payroll report. The Nikkei slid 1.2% to 8390, with Elpida Memory tumbling 5.4% after Deutsche Bank downgraded the memory maker. The Kospi declined 1.1%, the ASX 200 sank .8%, and the Hang Seng slumped 1.2% to 18593. Bucking the trend, the Shanghai Composite climbed .7%, as banking shares gained.

In Europe, stocks closed mixed despite strong US jobs data. The FTSE rose .5%, while the DAX fell .6%, and the CAC40 slipped .2%.

US markets had a similar close, with the Nasdaq edging up .2%, while the Dow fell 56 points to 12360, and the S&P 500 declined .3%. The VIX fell 4% to 20.63, a sign that investors are growing increasingly calm.

Netflix shares surged 8.6%, extending its weekly gain to 23%, amid rumors of a takeover.

Best Buy shares gained 3.3%, despite reporting a 1.2% drop in same-store sales, thanks to a string outlook.

Treasuries and Commodities
Bonds rose moderately. 10-year notes gained 10/32 toy yield 1.96%, and 30-year notes climbed 28/32 to yield 3.02%.

Crude oil eased .3% to 101.56, while natural gas soared 2.8% to 3.062.

Metals traded mostly lower, although copper rose .3%. Silver sank 2.1% to 28.683, and gold edged down .2% to 1616.80.

Currencies
The Dollar gained against world currencies, as euro-zone fears continue. The Euro and Pound both fell .5% to 1.2724 and 1.5424 respectively, and the Swiss Franc eased .3% to 1.0467. The Canadian Dollar sank .9% to 1.0286, and the Australian Dollar slipped .3% to 1.0228. The Yen managed a slight gain, rising .2% to 76.97.

Economic Outlook
The US economy added 200K jobs last month, far beyond the 152K estimated, and the unemployment rate fell to 8.5% from 8.7%. Despite the upbeat data, some analysts remained skeptical over the economic recovery, attributing the gain to seasonal factors.

Monday’s sole report is consumer credit, which is expected to rise by $7.2 billion.

Alcoa will report earnings on Monday, unofficially kicking off earnings season.

-Bradley Welcher

Binary Options Daily Analysis – Commodities Fall Despite Strong US Data

Equities
Asian markets traded mostly lower on Thursday, as concerns over Europe’s debt troubles resurfaced. The Nikkei dropped 71 points to 8489, the ASX 200 skidded 1.1%, and the Shanghai Composite fell 1% to 2149. Oil stocks helped offset losses in financials, with the Kospi easing a mere .1%, and the Hang Seng gaining .5%.

In Europe, stocks dropped once again, weighed down by banks. The CAC40 fell 1.5%, the FTSE lost .8%, and the DAX shed .3%. Italy’s MIB index tumbled 3.7%, as Italy’s leading bank, UniCredit, continued to drop.

US markets once again recovered from early losses. The Dow closed down 3 points, erasing a 130 point drop, while the Nasdaq climbed .8% and the S&P 500 rose .3%.

Denndreon shares surged 39.8% after reporting a huge jump in revenues.

Zumiez rocketed up 17.6% after reporting impressive sales data. Macy’s climbed 3.9%, while Target fell 3% after missing sales forecasts.

Treasuries and Commodities
Bonds retreated for a 3rd day, despite the mounting European debt fears. 10-year notes edged down 4/32 to yield 1.99%, and 30-year notes fell 18/32 to yield 3.06%.

Natural gas dropped 3.9% to 2.975, as energy traded lower. Crude oil fell 1.43 to 101.79, and gasoline lost 1.6% to 2.7399.

Metals settled mixed, as copper fell .4% to 3.4205, while gold gained .8% to 1625.50, and silver rose .6% to 29.275.

Agriculturals fell sharply, with sugar losing 5.3%, wheat dropping 3.2%, and corn sinking 2.3%.

Currencies
The US Dollar rallied across the board, while the Euro fell to a 15-month low of 1.2771, down 1.2%. The Swiss Franc lost 1.1% to 1.0493, and the Pound dropped .8% to 1.5487. In the Pacific, the Australian Dollar declined 1% to 1.0252, and the Yen shed .6% to 77.22.

Economic Outlook
ADP payroll data showed a massive jump of 325K jobs last month, blowing past estimates for a 176K gain, and boding well for Friday’s official non-farm payroll report. Weekly jobless claims fell to 372K from last week’s 387K, slightly better than forecast.

Analysts expect the government to report a gain of 152K jobs over the last month in Friday’s payroll report. The unemployment rate is expected to rise to 8.7%.

Earnings are due from PriceSmart, Robins & Myers, and Commercial Metals.

-Bradley Welcher

Binary Options Daily Analysis – Upbeat Economic Data Helps US Markets Erase Losses

Equities
Asian markets traded mixed on Wednesday, following Tuesday’s advance. For the gainers, the Nikkei rallied 1.2% to 8560, and the ASX 200 surged 2.1%, as mining giant BHP Billiton soared 4.1%. On the losing side, the Kospi declined .5%, the Shanghai Composite sank 1.4%, and the Hang Seng slid .8%

European banks tumbled 3.6%, weighing on the region’s indexes. The CAC40 slumped 1.6%, the DAX fell .9%, and the FTSE declined .6%. News that Italy’s largest bank, UniCredit, will need to raise 8 billion euros to meet capital requirements, pressured financials.

US markets traded lower at the open, but erased their losses as the day progressed. The Dow rose 21 points to 12418, while the S&P 500 and Nasdaq ended flat.

Yahoo shares dropped 3.1% after naming Scott Thompson as its new CEO. Kodak shares tumbled 28% on news the company is headed for bankruptcy.

Treasuries and Commodities
Treasuries extended their declines. 10-year notes fell 12/32 to yield 1.99%, and 30-year notes dropped 1 6/32 to yield 3.04%.

Energy rallied, led by natural gas, which jumped 3.7% to 3.104. Gasoline gained 1.4% to 2.7823, and crude oil edged up .3% to 103.23.

Metals traded mixed. Copper fell 2.8% to 3.4315 and silver lost 1.6% to 29.09, while gold rose .8% to 1612.90.

Currencies
The Euro fell .9% to 1.2942, the Swiss Franc dropped 1% to 1.0620, and the Pound eased .2% to 1.5618, as debt fears hit European currencies. The Yen and Australian Dollar settled flat, while the Canadian Dollar ticked down .1% to 1.0124.

Economic Outlook
Vehicle sales remained at an annualized rate of 13.6 million, slightly above expectations, and factory orders increased by 1.8% after last month’s .2% decline.

Thursday’s heavy economic calendar will include the ADP employment report, the Challenger job-cut report, weekly jobless claims, ISM non-manufacturing data, and chain-store sales.

Earnings are scheduled for Apollo Group, Family Dollar, Monsanto, and Constellation Brands.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Surge on Opening Day of 2012

Equities
The year opened strongly for Asian markets, as investors were encouraged by upbeat Chinese PMI data. The Kospi surged 2.7% to 1875, and the ASX 200 climbed 1.1%, with materials stocks leading the gains. Hong Kong’s Hang Seng jumped 2.4% to 18877, as petroleum stocks rallied more than 4%. Markets in Japan and China were closed for holidays.

European markets gained as well, boosted in the afternoon by strong US data. The FTSE advanced 2.3%, the DAX rallied 1.5%, and the CAC40 rose .7%.

US stocks posted strong gains as well. The Dow jumped 180 points to 12397, the Nasdaq rallied 1.7%, and the S&P 500 climbed 1.6%.

Micron Technology garnered an upgrade from Barclays, sending the shares up 7.4%. JPMorgan upgraded Cisco to overweight, giving the shared 3.4% pop.

Treasuries and Commodities
Bond prices fell, as a renewed appetite for risk pressured fixed income. 10-year notes dropped 20/32 to yield 1.95%, and 30-year notes sank 1 20/32 to yield 2.97%.

Commodities rallied nearly universally, lifted by the strong manufacturing data. Crude oil surged 4.3% to 103.08 as a rise in tensions with Iran sent prices sharply higher. Gasoline jumped 3.6% to 2.7519, and natural gas edged up .1% to 2.992.

Silver posted an impressive 6% gain to 29.575, leading metals higher. Copper gained 2.6% to 3.526, and gold rose 2.5% to 1605.50.

Agricultural futures also posted strong gains. Sugar advanced 5.2%, and cotton settled up 4.4%.

Currencies
Investor optimism pressured the US Dollar, which fell across the board against major currencies. The largest gainer was the Australian Dollar, which traded up 1.3% to 1.0371. The Euro and Pound gained .9% to 1.3050 and 1.5648 respectively, while the Canadian Dollar and Swiss Franc rallied .8%. The Yen had a smaller .3% gain to 76.65.

Economic Outlook
In the US, the ISM manufacturing index rose to 53.9 from 52.7, slightly more than expected. Constructions spending rebounded after last month’s .2% decline, climbing 1.2%.

In the UK, Manufacturing PMI rose substantially, climbing to 49.6 from 47.7.

Wednesday’s reports will include monthly auto sales, factory orders, and weekly mortgage applications.

Earnings are due from chemical maker Mosaic, and Sonic Corp.

-Bradley Welcher

Binary Options Daily Analysis – Global Stocks Trade Mixed on Final Day of the Year

Equities
Asian markets closed mixed on the last trading day of the year, but were sharply lower than their 2010 settling prices. The Nikkei gained .7% to 8455, closing the year down 17%. Australia’s ASX 200 slipped .4%, declining 14.5% in 2011. In China, the Shanghai Composite jumped 1.2%, but dropped 22% for the year. The Hang Seng edged up .2%, a minor change to the index’s 20% drop in 2011.

In Europe, the major indexes enjoyed moderate gains. The CAC40 climbed 1%, the DAX advanced .9%, and the FTSE edged up .1%. For the year, the indexes fell 18%, 15%, and 6% respectively. Regional banks were the biggest losers, shedding almost 40% over the past year.

US stocks closed lower in light trading. The Dow fell 69 points to 12218, trimming its 2011 gain to 5.5%. The Nasdaq eased .3%, slipping 1.8% for the year, and the S&P 500 closed down .4%, ending flat for 2011.

American Airlines parent, AMR, tumbled 32% on news the company would be delisted from the New York Stock Exchange, after filing for bankruptcy last month.

Treasuries and Commodities
110 and 30-year notes both rose a modest 6/32, putting the yield at 1.88% and 2.89% respectively.

Energy traded lower, led by natural gas, which fell 1.3% to 2.989. Crude oil dropped .8% to 98.93, while gasoline slipped .5% to 2.6574.

In contrast, metals rallied significantly. Silver jumped 2.2% to 27.915, gold advanced 1.7% to 1568.80 and copper climbed 2% to 3.436.

Currencies
The Yen surged .9% to 76.91, and the Pound rallied .8% to 1.5543, as the Dollar traded lower. The Australian Dollar gained .7% to 1.0209, and the Swiss Franc edged up .2% to 1.0660. The Euro closed flat at 1.2961.

Economic Outlook
Tuesday’s major reports will include the ISM manufacturing index, constructions spending, and the minutes from the last FOMC meeting. No major earnings reports are scheduled.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Rally as Housing Market Recovers

Equities

Asian markets traded mostly lower in anxious anticipation of an Italian auction for 10-year notes, later in the day. The Nikkei eased .3% to 8399, the ASX 200 closed down .4%. Korea’s Kospi ended flat, despite a disappointing factory output report. The Hang Seng slid .7% to 18398, while China’s Shanghai Composite managed a slight gain of .2%.

Meanwhile, European markets rallied, lifted by upbeat US economic data. The CAC40 jumped 1.8%, the DAX advanced 1.3%, and the FTSE rose 1.1%. Italy succeeded in selling 7 billion Euros of 10-year notes at 6.98%, an improvement from November’s 7.56% rate, but still incredibly high.

US stocks rose, with the Dow climbing 136 points to 12287. The S&P 500 gained 1.1%, and the Nasdaq closed up .9%.

Homebuilders surged following a jump in pending home sales data. Beazer jumped 7%, and Pulte climbed 6.1%.

Treasuries and Commodities
Bond prices rose for a second day. 10-year notes edged up 5/32 to yield 1.90%, and 30-year notes gained 13/32 to yield 2.9%.

Natural gas tumbled 3% to 3.028, while crude oil rose .3% to 99.65, despite a jump in oil inventories.

Gold sank 1.1% to 1547.60, extending its recent losses. Silver however, rallied 1.8% to 27.71, bouncing after Wednesday’s tumble. Copper settle up .4% at 3.38.

Currencies
The Dollar traded moderately lower against most currencies. The Euro recovered from a morning drop down to 1.2860, to settle at 1.2963, up .2%. The Canadian Dollar and Swiss Franc rose .3%, and the Yen gained .4% to 77.64. The British Pound declined .2% to 1.5416, but was well off its intraday low of 1.5364.

Economic Outlook
Pending home sales surged 7.3% in the last month, blowing past analyst expectations for a 1.7% gain. Chicago PMI was reported at 62.5, better than expected. Less impressively, weekly jobless claims were worse than the 372K forecast, rising to 381K from last week’s 366K.

No major economic reports or earnings releases are scheduled for Friday.

-Bradley Welcher

Binary Options Daily Analysis – Dollar and Bonds Surge, Commodities Tumble

Equities
Asian markets extended their declines on Wednesday in very thin trading. Korea’s Kospi skidded .9% to 1825, the Nikkei edged down .2%, and the ASX 200 dropped 1.3%. The Hang Seng closed down .6% to 18519, while the Shanghai Composite managed a slight .2% gain.

European markets fell, pressured by an ECB report showing banks were increasingly depositing cash with the central bank, rather than lend to each other. The DAX tumbled 2%, the CAC40 slid 1%, and Italy’s MIB declined .7%. The FTSE closed flat, as gains in retailers offset losses from other sectors. An auction of 6-month Italian bonds was a major success, with yields dropping to 3.25%, compared to 6.5% just one month ago.

US stocks dropped sharply, with the Nasdaq and S&P 500 both dropping 1.3%, and the Dow losing 140 points to 12151.

A sales report by Comscore showed that retail sales for the holidays rose to $35 billion, up 15% from last year.

Treasuries and Commodities
Investors poured into US treasuries, pushing 10-year notes up 24/32 to yield 1.92%. 30-year notes surged 2 8/32, to yield 2.92%.

Metals dropped sharply, led by silver’s massive 5.9% drop to 27.06. Gold tumbled 2.5% to 1556.40, and copper declined 1.6% to 3.3545.

Crude oil erased yesterday’s gains, falling 1.8% to 99.53. Gasoline lost 1.5% to 2.649, and natural gas slipped .6% to 3.13.

Currencies
The Dollar surged, while European currencies plunged. The Euro dropped 1% to 1.2935, hitting a 1-year low, the Pound fell 1.4% to 1.5448, and the Swiss Franc sank .9% to 1.0607. The Australian Dollar declined .6% to 1.0090, and the Canadian Dollar slid .5% to 1.0244. The Yen slipped fractionally to 77.92.

Economic Outlook
Thursday’s economic calendar will include weekly unemployment claims, Chicago PMI, pending home sales, and weekly oil inventories.

No major earnings reports are due.

-Bradley Welcher

Binary Options Daily Analysis – Crude Jumps Past $100, Equities Trade Narrowly

Equities
Asian markets traded lower in thin trading, following Monday’s holiday closure of American and European markets. The Nikkei declined .5% to 8441, and the Kospi dropped .8% to 1842. China’s Shanghai Composite sank 1.1% to 2166 on extremely light volume. Markets in Australia and Hong Kong remained closed.

In Europe, the DAX edged up .2%, and the CAC40 closed up fractionally in light trading. Markets in the UK were closed for an extended weekend. Italy’s MIB index dropped 1% as regional banks fell following a weak bond auction.

Thin trading continued in the US, and is likely to last through the rest of the year. The Dow and S&P 500 closed little changed, while the Nasdaq rose .3% to 2625.

Sears Holdings tumbled 27% to 33.38 after announcing it would close more than 100 Sears and Kmart stores to cut costs.

Treasuries and Commodities
Bonds rose moderately, with 10-year notes up 6/32 to yield 2.00%, and 30-yeat notes up 18/32 to yield 3.03%.

Crude oil jumped 1.7% to 101.38, settling back above the highly watched $100 mark. Natural gas inched up .1% to 3.117, while gasoline closed down .2% at 2.6812.

Metals fell, led by copper’s 1.6% drop to 3.4125. Silver slumped 1.5% to 28.65, and gold lost $11 to 1595.

Agricultural futures soared, with wheat climbing 3.9% and soybeans gaining 3.2%.

Currencies
Currency markets traded in very narrow ranges as the world remained on vacation. The Dollar settled mostly lower, as the Euro edged up .1% to 1.3068, and the Pound gained .3% to 1.5668. The Yen and the Swiss Franc both rose .2% to 77.87 and 1.0707 respectively. The Australian Dollar and the Canadian Dollar slipped fractionally.

Economic Outlook
Tuesday’s economic data was mixed. The Case-Shiller home price index showed house prices continued to drop, with the annual rate reaching 3.4%, slightly more than expected. The Richmond manufacturing index rose to 3 from last month’s zero reading, but fell shy of forecasts. Consumer Confidence jumped to 64.5 from last month’s 55.2 reading, blowing past analyst expectations.

No major economic data or earning reports are due on Wednesday.

-Bradley Welcher

Binary Options Daily Analysis – Upbeat US Data Continues to Push Stocks Higher

Equities
A drop in US unemployment claims helped push Asian markets higher on Friday. The Kospi climbed 1.1%, and the ASX 200 added 1.2%, led by materials stocks. The Shanghai Composite rose .9%, and Hong Kong’s Hang Seng advanced 1.4%, gaining 1.9% for the week. The Nikkei was closed for a holiday.

The equity rally continued in Europe, as the FTSE and CAC40 rallied 1%, while the DAX gained .5%. Oil and gas stocks were the largest gainers, as crude oil continued its recent advance.

Similar gains were achieved in the US. The Dow climbed 124 points, the S&P 500 gained .9%, and the Nasdaq rose .7%. Congress passed a 2 month extension on a payroll tax cut, which affects 160 million workers.

Rambus shares jumped 12% after signing a licensing agreement with Broadcom.

Treasuries and Commodities
US bonds fell as equities gained. 10-year notes dropped 22/32 to yield 2.02%, and 30-year notes sank 1 16/32 to yield 3.06%.

Gasoline futures surged 1.8% to 2.6872, and crude oil inched up .15 to 99.68, while natural gas slumped 1.7% to 3.114.

Copper rallied 1.6%, boosted by the recent flow of upbeat housing data. Silver edged up .1% to 29.084, while gold slipped .3% to 1606.

Currencies
The major pairs traded in narrow ranges as the market prepared for the extended holiday weekend.. The Euro closed down fractionally at 1.3048, while the Swiss Franc, Australian Dollar, and Yen all edged up .1%. The British Pound was a notable mover, dropping .6% to 1.5588.

Economic Outlook
Yet another report suggested that the US housing market is finally beginning to recover, as new home sales edged up to 315K, better than last month’s 310K, and slightly above expectations.

Durable goods orders jumped 3.8%, blowing past forecasts of 2.2%, although core durable goods orders, which is more reliable, rose a mere .3%, below analyst expectations.

European and US markets will be closed on Monday for Christmas.

-Bradley Welcher

Binary Options Daily Analysis – Weekly Jobless Claims Drop to 3.5 Year Low

Equities
Asian markets traded lower, as the ECB’s liquidity efforts failed to inspire confidence amongst investors. The Nikkei dropped .8% to 8395, and the Kospi edged down fractionally. Australia’s ASX 200 slumped 1.2% as retailers continue to slash their outlook for the first quarter, due to weak Christmas sales. In greater China, the Hang Seng and Shanghai Composite both declined .2%, but were well-off their earlier lows.

In contrast, European markets rallied, led by banks, which gained 2%. The CAC40 climbed 1.4%, the FTSE gained 1.3%, and the DAX advanced 1.1%.

US markets closed higher as well, boosted by upbeat economic data. The Dow gained 62 points to 12170, while the Nasdaq and S&P 500 both rose .8%.

Micron Technology shares jumped 15.7%, as upbeat sales data outweighed concerns over lower than expected profits. Meanwhile, Bed Bath & Beyond shares slid 6.3% after issuing a weak outlook.

Treasuries and Commodities
US bonds rose modestly, as 10-year notes rose 4/32 to yield 1.95%, and 30-year notes edged up 10/32 to yield 2.99%.

Energy extended its gains, as crude oil rose .9% to 99.51, gasoline advanced.7% to 2.637, and natural gas closed up .5% to 3.171.

For a second day, precious metals fell, while copper closed .8% higher. Silver lost .4% to 29.13, and gold shed .5% to 1606.30.

Currencies
The Pound, Euro, and Swiss Franc all ended little changed from their Wednesday settlement prices, closing near the center of their intraday price range. The Canadian Dollar climbed .6% to 1.0208, and the Australian Dollar gained .4% to 1.0130, as traders moved back into “risk on” mode. The Yen eased .2% to 78.17.

Economic Outlook
3rd quarter GDP was revised downward to 1.8% from 2.0%, showing the economy is growing slowly, but steadily. Weekly jobless claims fell to 364K, 12K better than expected, hitting their best level since 2008. Consumer confidence moved up to 69.9 from 67.7, better than forecast.

Friday’s reports will include new home sales, durable goods orders, and personal income & spending. No major earnings reports are scheduled.

-Bradley Welcher

Binary Options Daily Analysis – ECB Offers 489 Billion Euro Liquidity Boost

Equities
Asian markets advanced on Wednesday, buoyed by strong Tuesday’s outstanding US housing data. The Nikkei gained 1.5% to 8460, the Kospi jumped 3.1%, and the ASX 200 rallied 2.1%. Hong Kong’s Hang Seng climbed 1.9% to 18416, while China’s Shanghai Composite bucked the uptrend, sliding 1.1% to 2191.

European markets declined, as a morning spike faded. The DAX fell 1% to 5792, the CAC40 dropped .8% and the FTSE declined .6% to 5390. The ECB offered 489 billion euros in 3-year notes, in an effort to increase liquidity to struggling banks.

US markets closed mixed as the Nasdaq dropped 1%, while the S&P 500 gained .2%, and the Dow inched up 4 points.

Oracle shares tumbled nearly 12% after announcing earnings that missed analyst estimates.

Research in Motion shares jumped 10.1% on hopes the company might be taken over.

After the bell, Bed Bath & Beyond shares slumped 3.8% on weaker than expected sales.

Treasuries and Commodities
Bonds fell for a second day, as the ECB’s liquidity measures lowered interest in US bonds. 10-year notes fell 14/32 to yield 1.97%, and 30-year notes dropped 1 18/32 to yield 3.00%.

Energy rallied, boosted by a sharp drop in oil inventories, which far exceeded expectations. Gasoline gained 1.7% to 2.6234, oil advanced 1.6% to 98.32, and natural gas rose by 1.2% to 3.165.

Metals traded mixed as copper gained .7% to 3.394, while precious metals fell. Gold eased .1% to 1615.40, and silver slipped .6% to 29.365.

Currencies
The major currencies swung widely in a volatile session, as the ECB’s efforts triggered a brief dollar selloff which quickly reversed. The Euro closed down .3% to 1.3048, after spiking as high as 1.3188 earlier in the day. The Australian Dollar rose by .2% to 1.0092, the Pound edged up .1% to 1.5676. and the Canadian Dollar settled up .3% to 1.0263.

Economic Outlook
Existing home sales rose by much less than forecast, climbing to 4.42M from 4.25M, as opposed to a forecast of 5.04 million.

Thursday’s economic data will include final GDP data for the 3rd quarter, leading indicators, the OFHEO home price index, and consumer sentiment data from the University of Michigan.

Earnings are due from American Greetings and Neogen.

 

-Bradley Welcher

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