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Binary Options Daily Analysis – Global Stocks Slide on Mounting Economic Concerns

Equities
Asian markets closed mostly lower on Wednesday, led by heavy losses in China.   The Shanghai Composite tumbled 2.7% to 2285, a 2-month low as disappointing earnings weight on the index. The Hang Seng fell .8%, the Kospi slid .4%, and the Nikkei dropped .7% to 10183. Australia’s ASX 200 escaped the losses, rallying 1%, after the country’s central bank reported that the nation’s banking sector is in good shape.

European markets skidded, weighed down by weak economic data. The CAC40 and DAX slid 1.1%, and the FTSE dropped 1% to 5809.   Data suggested that Spain is now in another recession, and the UK’s GDP shrank more than forecast.

US stocks opened sharply lower but recovered much of their losses throughout the day. The Dow shed 72 points to 13126, while the S&P 500 and Nasdaq both fell .5%. Caterpillar shares sank 3.5% to 104.26, pressured by a disappointing durable goods report.

Annie’s surged 89% in its first day of trading, climbing 16.92 to 35.92. The company trades under the symbol BNNY.

Treasuries and Commodities
The government auctioned $35 billion in 5-year notes, with a yield of 1.04%, the highest in 5-months. Demand was weaker than usual, with a bid-to-cover ratio of 2.85, below the 3.02 average.

10-year notes settled down 2/32 to yield 2.19%, and 30-year notes eased 1/32 to yield 3.30%.

Crude oil fell 1.7% to 105.49, after a government report showed a large jump in inventories. Natural gas eased .8% to 2.276, and gasoline edged down .1% to 3.4021.

Signs of economic weakness sent copper down 2.1% to 3.8005. Silver slumped 1.7% to 32.05, and gold dropper 1.4% to 1661.30.

Agricultural futures sold off as well. Wheat fell 1.4%, corn skidded 1.7%, and coffee tumbled 2.9%.

Currencies
The currency markets traded mixed on Wednesday. The Pound fell .3% to 1.5894, the Australian Dollar declined .6% to 1.0393, and the Canadian Dollar slipped .3% to .9980. The Yen advanced .5% to 82.78, while the Euro and Swiss Franc closed flat.

Economic Outlook
Durable goods orders rose 2.2% last month, less than the 3% hoped for by analysts. Weekly mortgage applications rose while refinancing applications fell, a positive sign for the housing industry.

Thursday’s reports will include final GDP data for the 4th quarter, corporate profits, and weekly unemployment claims.

Earnings are due from Best Buy, Jos. A. Bank, Research in Motion and Texas Instruments.

-Bradley Welcher

Binary Options Daily Analysis – Asia Spikes, West Consolidates, after Monday’s Rally

Equities
Asian markets jumped in response to Monday’s Wall Street rally, inspired by Bernanke’s suggestion of another round of government stimulus. The Nikkei surged 2.4% to 10255 its highest close in more than a year. The Hang Seng rallied 1.8% to 21047, the ASX 200 climbed .9%, and the Kospi advanced 1% to 2040. The Shanghai Composite bucked the trend, easing .2% to 2347.

In Europe, markets declined, surrendering some of Tuesday’s gains after US consumer confidence data came in below forecasts. The CAC40 slumped .9%, the FTSE slid .6%, while the DAX closed flat. The Royal bank of Scotland advanced 3.3% on rumors of a possible investment by Abu Dhabi’s ruling family.

US stocks closed lower after hovering near break even for most of the session. The Dow declined 44 points to 13198, the S&P 500 lost .3% to 1413, and the Nasdaq settled down .1% at 3120.

Bank of America skidded 3.3% after Baird downgraded the stock.

Lennar shares surged 4.7% after reporting a sharp jump in home orders.

Treasuries and Commodities
Bonds gained, with 10-year notes up 16/32 to yield 2.19%, and 30-year notes up 22/32 to yield 3.30%.

Commodities traded mostly lower after yesterday’s rally. In energy, gasoline slipped .4% to 3.4041, natural gas slumped .8% to 2.208, while crude oil edged up .2% to 107.29.

Silver ticked down .3% to 32.665, copper close down .2% to 3.8815, while gold traded flat at 1686.

Volatility was high in the agricultural sector as wheat tumbled 3%, while coffee spiked 4.8%.

Currencies
The Dollar traded modestly higher on Tuesday, as currency markets traded in a narrow range. The Australian Dollar shed .5% to 1.0482, the Canadian Dollar lost .3% to .9944, and the Pound traded flat. The Euro and Swiss Franc both declined .2%, and the Yen dropped .3% to 83.10.

Economic Outlook
The Case Shiller home price index showed prices remained flat in January,. Consumer confidence fell to 70.2 from 71.6 last month, slightly below expectations.

Wednesday’s reports will include durable goods, weekly mortgage applications, and weekly oil inventories.

Earnings are due from Family Dollar, Mosaic, and Paychex.

-Bradley Welcher

Binary Options Daily Analysis – Bernanke’s Comments Trigger Stock Market Rally

Equities
Asian markets traded mixed on Monday following Friday’s disappointing home sales data from Wall Street,. The Nikkei rose .1% to 10018, the ASX 200 slipped .2%, and the Kospi dropped .4%. In China, the Shanghai Composite rose fractionally, and the Hang Seng settled flat.

European markets rallied in the afternoon as comments by Fed Chairman, Bernanke, suggested further economic easing was likely. Bernanke said the economy must grow quicker to produce more jobs, and suggested that process could be aided by government policies.

The DAX climbed 1.2%, the FTSE advanced .8%, and the CAC40 gained .7%. Germany’s IFO business activity report rose unexpectedly, contributing to the gains.

US stocks posted large gains, encouraged by the Bernanke’s remarks. The Nasdaq surged 1.8%, the S&P 500 climbed 1.4%, and the Dow advanced 161 points to 13242.

Lions Gate Entertainment jumped 4.5% after the new movie, “The Hunger Games”, netted $214 million in its opening weekend.

Treasuries and Commodities
Bond prices dropped, despite the possibility of a third round of quantitative easing by the Fed. 10-year nites eased 5/32 to yield 2.25%, and 30-year notes slipped 22/32 to yield 3.34%. German bonds tumbled, with 10-year notes down .785 and 30-year notes down 1.76.

Commodities spiked, especially metals. Copper advanced 2.4% to 3.896, gold gained 1.7% to 1691.10, and silver rallied 1.8% to 32.86.

Crude oil inched up .25 to 107.12, and gasoline rose .8% to 3.4136, while natural gas slumped 2.6% to 2.215, a 10-year low.

Currencies
The Dollar tanked in the currency markets. The Australian Dollar led the gains, rising 1.3% to 1.0536. In Europe, the Euro gained 1.2% to 1.3356, the Swiss Franc rose 1.1% to 1.1074, and the Pound advanced .9% to 1.5968. The Yen bucked the trend, slipping .3% to 82.88.

Economic Outlook
Continuing Friday’s dreary housing news, pending home sales unexpectedly fell .5%. Analysts had forecast a gain of 1% after last month’s 2% jump.

Tuesday’s economic data will include consumer confidence, the Case-Shiller home price index, and the Richmond manufacturing index.

Earnings are due from Lennar, Robbins & Myers, and Walgreen’s.

-Bradley Welcher

Binary Options Daily Analysis – Commodities Rally on Upbeat Copper Outlook

Equities
Asian markets closed mostly lower on Friday, following Thursday’s disappointing round of economic news. The Nikkei ,Shanghai Composite and Hang Seng all dropped 1.1% in an unusual parallel drop. Escaping the selling pressure, the ASX 200 eased a mere .1%, and the Kospi closed fractionally higher.

European markets traded modestly higher, as the DAX and FTSE edged up .2%, while the CAC40 rose .1%. An upbeat earnings report from Chile’s Codelco, the world’s top copper producer helped lift resource stocks in the afternoon.

US stocks posted similar gains, as the Dow ticked up 35 points to 13081, the S&P 500 advanced .3%, and the Nasdaq inched up .2%. The VIX fell 4.8% to 14.82 as the Dow snapped a 3-day losing steak.

KB Home plunged 8.5% after reporting an unexpected drop in orders. Nike shares dropped 3.2% despite upbeat earnings news.

The BATS exchange launched its IPO on Friday, but the company’s own computer system failed, causing wild fluctuations in the stock. The company said it will cancel its IPO, and all trades will be canceled.

Treasuries and Commodities
Bond prices continued to climb, with 10-year notes up 13/32 to yield 2.23%, and 30-year notes up 1 full point to yield 3.21%. German bonds posted smaller gains, with 10-year notes up .41 and 30-year notes up .835.

Commodities traded higher in a broad resource rally. Crude oil and gasoline both advanced 1.4% to 106.87 and 3.3852, while natural gas posted a smaller .3% gain to 2.275.

Silver led the gain in metals, climbing 3% to 32.372. Copper gained 1.1% to 3.8085, and gold advanced 1.2% to 1662.40.

Currencies
The Dollar traded lower as a rise in commodities pushed down the greenback. The Australian Dollar bounced .7% to 1.0472, the Euro climbed .5% to 1.3271, and the Swiss Franc pushed up .6% to 1.1001. The Pound and Yen both rose .3%, and the Canadian Dollar edged up .1% to .9984.

Economic Outlook
New home sales unexpectedly fell to 313K, the lowest reading since October. f Analysts had expected the figure to rise to 326K from last moth’s 318K reading.

Monday’s economic reports will include pending home sales, the Dallas Fed manufacturing survey, and the Chicago Fed’s national activity index. Fed Chairman Bernanke will be speaking about the labor market at an economic conference in Arlington.

Earnings are due from Apollo Group.

-Bradley Welcher

Daily Analysis Binary Options – Weak PMI Data from China and Europe Weighs on Stocks and Commodities

Equities
PMI data from China showed industrial activity slowed for a fifth straight month, reinforcing concerns of a slowdown in the region. Nonetheless, consumer stocks gained after the Ministry of Commerce in China said consumption is likely load growth in China. The Shanghai Composite eased .1%, and the Hang Seng rose .2% to 20902. The Nikkei rose .4% to 10127, the ASX 200 advanced .5%, and the Kospi closed down fractionally.

European markets skidded, as negative news from China and and the Euro zone unsettled investors. The CAC40 tanked 1.6%, the DAX sank 1.3%, and the FTSE shed .8%. PMI data from Germany and France, a showed an unexpected drop in manufacturing, stoking fears of another recession. Materials stocks tumbled, dropping 3.4%.

US stocks closed lower, but fared better than their European counterparts. The Dow lost 78 points to 13046, the S&P 500 dropped .7%, and the Nasdaq fell .4%.

Fedex dropped 4.5% after the company lowered its outlook for the year, due to the weak economy.

Western Digital jumped 6.6% after Needham upgraded the company to “strong buy”.

Treasuries and Commodities
Bonds extended their gains, with 10-year notes up5/32 to yield 2.28%, and 30-year notes up 14/32 to yield 3.36%.

Weak global PMI data sent commodities lower. Oil dropped 1.6% to 105.53, natural gas plummeted 4.2% to 2.261, and gasoline eased .3% to 3.3473.

Copper shed 1.9% to 3.7725, silver fell 2% to 31.58, and gold ticked down .3% to 1645.30.

Agricultural futures fared better, as sugar rallied 2.3% and wheat climbed 1.6%.

Currencies
The Yen surged 1% to 82.57 as growth currencies triggered a flight to safety. The Australian Dollar fell .6%, to 1.0396 and the Canadian Dollar slumped .7% to .9992 as the two commodity currencies dropped. The Euro and Swiss Franc both eased .1%, and the Pound declined .3% to 1.5820.

Economic Outlook
Despite the weakness overseas, the US economy continues to show signs of a modest recovery. Weekly jobless claims fell to 348K, 5K better than last week, and leading indicators rose .7%, better than forecast.

Friday’s sole report will be new home sales, which are expected to rise to 326K from 321K.

Earnings are due from Darden Restaurants, and KB Home.

-Bradley Welcher

Binary Options Daily Analysis – Existing Home Sales Data Disappoints

Equities
Concerns over a possible slowdown in China hit Asian stocks for a second day., particularly resource stocks The Nikkei fell .6% to 10086, as exporters fell heavily. Sony shares tumbled 4.5%. The Kospi dropped .7%, the ASX 200 declined .5%, and the Hang Seng eased .2% to 20857. Ironically, China’s Shanghai Composite bucked the trend, inching up .1% to 2378.

In Europe, the major indexes closed mixed after trading in a narrow range all day. The DAX gained .2%, the CAC40 fell .1% and the FTSE closed flat. Food retailer, J Sainsbury rallied 4.5% after beating analyst forecasts.

US stocks closed mostly lower as disappointing home sales data weighed on sentiment. The Dow slid 46 points to 13124, the S&P 500 slipped .2%, and the Nasdaq rose fractionally.

Oracle shares fell 2.3%, surrendering early gains, despite reporting earnings which beat estimates.

Green Mountain Coffee Roasters surged 10% after announcing it would expand an existing deal with Starbucks to distribute Starbuck’s brand coffee with its brewing machines.

Treasuries and Commodities
Bonds climbed for a second session. 10-year notes rose 18/32 to yield 2.30%, and 30-year notes rallied 1 3/32 to yield 3.38%.

Crude oil rose .7% to 106.85, boosted by a report which showed an unexpected drop in inventories. Natural gas rose .4% to 2.345, while gasoline dropped .3% to 3.3535.

Metals closed higher, led by silver, which advanced 1.1% to 32.17. Gold and copper both gained .2% to 1649.80 and 3.8385, respectively.

Currencies
After rising and falling throughout the day, the currency markets closed near their opening prices. The Euro, Swiss Franc, and Canadian Dollar settled down .1%, while the Pound rose .1%. The Australian Dollar slipped .3% to 1.0450, and the Yen gained .3% to 83.41.

Economic Outlook
Existing home sales dropped .9%, more than expected, to an annualized rate of 4.59M, down from last month’s 4.63M, and the supply of houses rose. Weekly mortgage applications declined, added to concerns over the housing markets recovery.

Thursday’s reports will include weekly unemployment claims, the OFHEO home price index, and leading indicators. Earnings are due from Accenture, ConAgra, Dollar General, Fedex, Gamestop, and Nike.

Bradley Welcher

Binary Options Daily Analysis – Signs of China Slowdown Hit Stocks

Equities
Asian markets closed mostly lower as indications of a slowdown in China hurt the region. after mining giant, BHP Billiton, said it is seeing signs of “flattening” demand from China. China’s Shanghai Composite sank 1.4% and the Hang Seng slumped 1.1%, while the ASX 200 dropped .4%. Korea’s Kospi closed down .2%, as did the Nikkei.

The negative outlook for China smacked European stocks. the DAX fell 1.4%, the CAC40 dropped 1.3%, and the FTSE shed 1.2%. Auto makers tumbled 4% following a report that Chinese car sales would fall short of forecasts, and miners tanked 3.6%.

US stocks closed lower as well, but were well off their session lows. The Dow erased 69 points to settle at 13170, after dropping 110 points in the morning, the S&P 500 slipped .3% to 1406, and the Nasdaq eased .1% to 3074.

Amazon shares popped 3.7% to 192.33 after announcing the purchase of Kiva System’s, which develops robots for shipping centers.

Tiffany shares jumped 6.7% after raising its outlook for 2012, while Adobe skidded 3.9% after reporting a slowing in revenue growth.

Treasuries and Commodities
Bonds gained modestly as equities fell. 10-year notes rose 5/32 to yield 2.36%, and 30-year notes rose 18/32 to yield 3.45%, snapping their 5-day losing streak.

Commodities tanked across the board. In energy, crude oil slumped 2.3% to 106.07, natural gas shed .9% to 2.329, and gasoline ticked down .2% to 3.361.

Silver lost 2.4% to 32.16, gold declined 1% to 1651, and copper fell 1.8% to 3.839.

Currencies
The weak outlook for metals hit the Australian Dollar particularly hard, dropping 1.2% to 1.0475. The Euro eased .1% to 1.3223, the Pound declined .2% to 1.5858, and the Yen fell .4% to 83.71.
The Swiss Franc settled flat, and the Canadian Dollar fell .5% to .9918.

Economic Outlook
Building permits climbed to .72M, a 3-year high, while housing starts slipped to .70M, dropping 1.1% from last month.

Wednesday’s reports will include existing home sales, weekly mortgage applications, and weekly oil inventories.

Earnings are scheduled for Discover Financial, General Mills, and Herman Miller.

-Bradley Welcher

Binary Options Daily Analysis – US Stocks Gain, Apple Settles Above $600

Equities
Asian markets traded mostly higher on Monday. In Japan, the Nikkei ticked up .1% to 10142, extending its winning streak to 5 days, and in Korea, the Kospi advanced .6% to 2047. Australia’s ASX 200 gained.3% as miners rallied, and the Shanghai Composite edged up .2%. The Hang Seng slumped 1% to 21115, as negative comments regarding Chinese banks weighed on the index.

In Europe, stock closed modestly lower. The CAC40 dropped .5%, while the FTSE and DAX declined less than .1%.

Meanwhile, US stocks gained, but ended off their highs. The Nasdaq rallied .8% to 3078, the S&P 500 climbed .4% to 1410, and the Dow rose 7 points to 13239.

Rumors of a secondary offering by Bank of America hit the company’s shares in the afternoon, which dropped 2.8 to 9.53.

Apple settled at 601.10, up 2.7% after announcing a $2.65 quarterly dividend, and a $10 billion stock buyback plan.

US Steel surged 6.4% after UBS upgraded the stock.

Treasuries and Commodities
Bonds sank, extending last week’s losses. 10-year notes fell 20/32 to yield 2.37%, and 30-year notes dropped 1 4/32 to yield 3.47%.

Crude oil rose .9% to 107.99, natural gas gained .8% to 2.345, and gasoline edged up .2% to 3.3647.

Silver climbed 1% to 32.915, gold rose .4% to 1663, and copper gained .7% to 3.9045.

Currencies
The Dollar dropped against foreign currencies as investors continued to shift capital into riskier investments. The Euro rose .5% to 1.3242, the Pound gained .4%, and the Swiss Franc rallied .6% to 1.0977. The Canadian Dollar advanced .5% to .9870, and the Yen rose .1% to 83.34.

Economic Outlook
The NAHB houing market index came in flat at 28, but was below expectations. 28 is the highest level recorded since June 2007.

Tuesday’s reports will include housing starts and building permits.

Earnings are expected from Cintas, Jabil Circuit, Jefferies, Oracle, and Tiffany.

-Bradley Welcher

Binary Options Daily Analysis – Energy Rallies, Stocks Mixed on Disappointing US Data

Equities
Asian markets traded mixed on Friday. The Nikkei managed to stretch its winning streak to 4, inching up .1% to 10130., and the Shanghai Composite climbed 1.3% to 2405 Amongst the losers, the Kospi slid .5% to 2034, the ASX 200 closed down fractionally, and the Hang Seng declined .2% to 21318.

In Europe, stocks gained, led by insurance companies, which advanced 2% after gaining concessions in the latest EU capital requirements. The FTSE and CAC40 climbed .4%, and the DAX rose .2%.

The major US indexes closed mixed in narrow trading. The Dow declined 20 points to 13234, ending a 7-day winning streak, the S&P 500 rose .1%, to 1404 and the Nadaq eased 1 point to 3055. The VIX dropped 6.2% to 14.47, and touched a 5-year low of 13.76 earlier in the day.

Research in Motion jumped 6.9% on rumors of a potential investment by Samsung in the company.

Bank of America jumped 6.1% to 9.80, as the recent rally in the stock continued.
Treasuries and Commodities
US bonds settled mixed, with 10-year notes down 4/32 to yield 2.29%, while 30-year notes rose 5/32 to yield 3.41%. Overseas, German bonds skidded as anxiety over the sovereign debt crisis eased 10-year notes fell .73 to yield 2.05%, and 30-year notes sank 1.74 to yield 2.71%.

The energy sector rallied, as crude advanced 1.9% to 107.06, while gasoline and natural gas climbed 2.1%.

Metals traded moderately lower. Copper shed .5% to 3.878, gold fell .2% to 1655.80, and silver lost .4% to 32.604.

Currencies
The Dollar tanked on Friday, pressured by disappointing US economic data. The Australian Dollar surged 1.4% to 1.0594, while the Euro and Pound rallied 1.1% to 1.3176 and 1.5838 respectively. The Yen rose .2% to 83.45, and the Canadian Dollar settled flat at .9921.

Economic Outlook
Friday’s economic data was universally weak. CPI data was in line with estimates, rising at .4%, although Core CPI rose just .1%, less than expected. Consumer Sentiment unexpectedly declined last month, slipping to 74.3 from 75.3. Industrial Production was flat, significantly weaker than last month’s .4% growth.

Monday’s sole report will be the NAHB housing market index. Earnings are due from Adobe, InterOil, and Talbots.

-Bradley Welcher

Binary Options Daily Analysis – US Stocks Climb on Solid Data, S&P Crosses 1400 Mark

Equities
Asian markets traded mixed on Thursday. The Nikkei rose .7% to 10123 a 7-month high, as a drop in the yen lifted exporters, with Mazda up 6.1%, Honda up 3.5%, and Canon up 3.7%. Korea’s Kospi eased fractionally, and the ASX 200 declined .2% as miners weighed on the index. In greater China, the Shanghai Composite declined .7% to 2374, extending Wednesday’s sharp 2.6% drop, while the Hang Seng edged up .2%.

In Europe, stocks closed mostly higher, as the DAX climbed .9%, and the CAC40 advanced .4%. The FTSE trailed behind, slipping .1%.

US indexes advanced, with the S&P 500 crossing the 1400 mark for the first time since 2008. The Dow tacked on 59 points to 13253, the Nasdaq rose .5%, and the S&P 500 gained .6% to 1403.

Bank shares continued to rally, with Bank of America up 4.5%, and Citigroup up 3%.

In the tech sector, AMD jumped 6.3% after garnering an upgrade from Jefferies, and Apple traded above $600 for the first time, before pulling back to settle down .7% at 585.56.

Treasuries and Commodities
Bonds fell once again, although the losses were more moderate than the previous 2 days. 10-year notes eased 3/32 to yield 2.28%, while 30-year notes dipped 8/32 to yield 3.41%.

Metals partially recovered from Wednesday’s slide. Silver climbed 1.7% to 32.726, gold gained 1% to 1659.50, and copper settled up 1.3% to 3.8975.

Energy declined, led by a 1.8% drop in gasoline to 3.2885. Crude oil slipped .3% to 105.11, and natural gas eased .2% to 2.279.

Currencies
Foreign currencies climbed against the US Dollar after yesterday’s rout. The Euro rose .4% to 1.3080, and the Pound gained .3% to 1.5714. The Swiss Franc and Australian Dollar both rallied .8%, and the Yen rose .2% to 83.55, reversing from an earlier drop down to 84.17.

Economic Outlook
Thursday’s economic reports were quite upbeat. Weekly unemployment claims dropped to 351K, 14K better than last week, and better than forecast. PPI rose .4%, less than expected, and both the Empire State manufacturing index, and the Philly Fed index exceeded analyst forecasts.

Friday’s reports will include CPI, industrial production, and consumer sentiment data from the University of Michigan. No major earnings announcements are scheduled.

-Bradley Welcher

Binary Options Daily Analysis – Bonds Tumble, Commodities Slide as Dollar Gains

Equities
Most Asian markets rallied for a second day on Wednesday as the Fed’s stress test list indicated that most US banks are in healthy shape. The Nikkei advanced 1.5% to 10051, its highest close since July, the Kospi gained 1% to 2045, and the ASX 200 rose .9%. In contrast, the Shanghai Composite tumbled 2.6% after the government dismissed the possibility of an easing in property restrictions. Property shares fell 3.7% on the news. In Hong Kong, the Hang Seng closed down .2%.

European markets closed mixed as well. The DAX rallied 1.2%, the CAC40 added .4%, while the FTSE slipped .2%. Banking shares climbed as investors cheered the stress test news, with the sector gaining 1.5%.

Back in the US, stocks closed little changed after Wednesday’s spike. The Dow rose 16 points to 13195, the S&P 500 eased .1%, and the Nasdaq closed flat.

Citigroup shares slumped 3.4% after flunking the stress tests, while Bank of America rallied 4.1% and American Express advanced 3.5%. Goldman Sachs dropped 3.4% after Greg Smith, a former executive published a harsh critique of the firm in the New York times Op-ed section.

Treasuries and Commodities
Bonds continued to tumbled, with 10-year notes tanking 1 8/32 to yield 2.27%, and 30-year notes plummeting 2 15/32 to yield 3.40%.

Commodities sold off nearly universally, with metals bearing the brunt of the slide. Gold lost 3% to 1644.10, silver plunged 4.2% to 32.18, and copper fell 1.7% to 3.837.

Crude oil fell 1.1% to 105.58, natural gas skidded .7% to 2.282, and gasoline slipped .3% to 3.3463.

Currencies
The US Dollar rallied in the currency markets on Wednesday. The Australian Dollar dropped .8% to 1.0450, as the slide in metals weighed heavily on the commodity currency. The Euro shed .4% to 1.3030, the Swiss Franc skidded .7% to 1.0748, and the Pound eased .2% to 1.5677. The Yen continued to fall, sliding .7% to 83.6925.

Economic Outlook
Import prices rose .4%, less than expected, while the US current account deficit surged to $124 billion, a 3-year high.

Thursday’s busy calendar will include PPI, weekly unemployment claims, the Empires State manufacturing index, and the Philly Fed manufacturing index.

Earnings are due from retailer Cato Corp, and Scholastic.

-Bradley Welcher

Binary Options Daily Analysis – Global Equities Rally on Solid Economic Data

Equities
Asian markets advanced on Tuesday. The Kospi rallied 1.1% to 2025, the ASX climbed 1.2% to 4248, and the Hang Seng tacked on 1% to 21340. China’s Shanghai Composite rose .9%, as rumors of a fuel price hike lifted energy shares. Japan lagged behind, inching up just .1% to 9899, after the Bank of Japan opted to not introduce another round of easing at this point.

In Europe, shares rallied, as upbeat economic data from Germany and the US lifted investor confidence. The CAC40 surged 1.7%, the DAX jumped 1.4%, and the FTSE advanced 1.1%. Banking shares bounced 3.3% as financials led the gains.

The rally continued in the US, where the Dow blasted past the 13000 level, to 13178, up 218 points. The S&P 500 rallied 1.8%, and the Nasdaq soared 1.9% to 3040, its first close above 3000 since 2000. The VIX tumbled 5.4% to 14.80, its lowest level since 2007.

The Fed left rates steady, and failed to announce any new economic policies, but acknowledged that the economy is improving.

In the afternoon, JPMorgan Chase boosted its dividend after passing the Fed’s latest round of stress tests, giving stocks an additional boost in the final hour of trading.

Midas shares leaped 27% o 11.44 on news the company will be taken private by TBC.

Treasuries and Commodities
Bonds tanked as upbeat sentiment weighed on fixed-income. 10-year notes dropped 26/32 to yield 2.13%, and 30-year notes tumbled 1 26/32 to yield 3.27%.

Energy traded higher, as natural gas rallied 2.6% to 2.327, gasoline gained 1.2% to 3.362, and oil rose .4% to 106.75.

Gold sank 1.6% to 1673.20, copper jumped 2% to 3.915, while silver closed flat at 33.42.

Currencies
The US Dollar settled mixed against global currencies, as investors digested the latest round of global economic data. The Swiss Franc and Yen both fell .7% to 1.0834 and 82.94 respectively, while the Euro dropped .5% to 1.3086. The Pound climbed .5% to 1.5710, the Australian Dollar rose .3% to 1.0550, and the Canadian Dollar gained .4% to .9883.

Economic Outlook
The German ZEW economic sentiment index hit a one-year high, spiking to 22.3 and blowing past analyst estimates of 10.6. In the US, retail sales rose .9% last month, slightly better than forecast, although the TIPP economic optimism index fell to 47.5 from 49.4.

The latest round of stress tests revealed that 4 out of 19 banks failed the tests, including Citigroup and Metlife.

Wednesday’s reports will include the current account deficit, import prices, and weekly crude oil invetories.

Earnings are expected from Affymax and Guess.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Trade Mixed, Commodities Slide on Chinese Slowdown Fears

Equities
Asian markets started the week on a down note, despite Friday’s upbeat jobs data from the US., as Chinese trade deficit data pointed to a slowdown in China. The Nikkei slid .4% to 9890, the Kospi skidded .8% to 2003, and the ASX 200 declined .4%. In China, the Shanghai Composite eased .2%, while the Hang Seng rose .2% to 21134, as China Mobile rallied 3.9% due to an upgrade by HSBC.

European markets managed slight gains with the CAC40 and FTSE edging up nearly .1% and the DAX rising .3%. Spain’s IBEX dropped 1.2% as investors dumped Spanish banks on debt concerns.

In the US, stocks closed mixed, while the VIX tumbled 8.6% to 15.64 indicating a sharp drop in investor anxiety. The Dow added 38 points to 12960, the S&P traded flat, and the Nasdaq slipped .2%.

Tranzyme Pharma tumbled 43% after reporting that a recent trial of its GI drug was a failure.

Disney shares rose .2% to 42.34 despite the weekend flop of its new film, John Carter, which pulled in a mere $30 million in its opening weekend. The film cost Disney more than $250 million to produce and market.

Treasuries and Commodities
Bonds settled little changed in calm trading with little news to move the market. 10-year notes ticked down 2/32 to yield 2.03%, and 30-year notes inched up 4/32 to yield 3.17%.

Crude oil dropped .9% to 106.48, and natural gas fell 2.4% to 2.269 in a broad slide for commodities.

Silver sank 2.3% to 33.413, and gold declined .7% to 1699.80. Copper shed .5% to 3.8375, snapping a 3-day winning streak.

Currencies
The Dollar traded mixed on Monday. The Euro and Swiss Franc both gained .2%, while the Pound fell .2% to 1.5638. The Australian Dollar dropped .6% to 1.0512 as metals fell. The Canadian Dollar declined .2% to .9930, while the Yen rose .2% to 82.30.

Economic Outlook
On Tuesday, retail sales data is due in the morning, and the Fed will issue its rate decision and a statement in the afternoon. The Fed’s recent commitment not to raise rates for 2 years minimizes the impact of the rate decision, but the statement could be significant.

No major earnings forecasts are scheduled.

-Bradley Welcher

Binary Options Daily Analysis – US Jobs Data Beats Forecasts, Lifting Dollar and Stocks

Equities
The Nikkei surged 1.7% to 9930, after rising as high as 10008, as approval of a debt swap by Greece’s private debt holders helped relieve investor anxiety. Exporters led the gains as the yen fell to a 9-month low, with Sony and Mazda each up more than 4%. The Kospi climbed .9%, and the ASX 200 gained 1%. In China, weaker than expected inflation data lifted stocks, with the Shanghai Composite settling up .8%, and the Hang Seng up .9%.

European markets gained moderately, lifted in the afternoon by upbeat US jobs data. The DAX advanced .7%, the FTSE climbed .5%, and the CAC40 rose .3%.

US stocks edged up, but concerns over a Greek “credit event” limited gains. The Dow tacked on 14 points to 12922, the Nasdaq gained .6% to 2988, and the S&P 500 rose .4% to 1371. Small cap stocks outperformed, as the Russell 2000 jumped 1.3% to 817. Greece forced all bond holders to accept the debt haircut, triggering payments on credit default swaps, but the event was largely expected.

The US economy added 227K jobs, 17K more than expected, while the unemployment rate remained steady at 8.3%.

Starbucks shares hit a new record hih, climbing 2.9% to 51.84 after announcing a single serve coffee machine. Competitor, Green Mountain, tumbled 15.7% on the news.

Treasuries and Commodities
Bonds posted narrow losses despite the strong jobs data. 10-year notes eased 4/32 to yield 2.03%, and 30-year notes edged down 2/32 to yield 3.18%.

Energy and metals advanced on growing signs the US economy is in the midst of a solid recovery. Oil gained .8% to 107.40, natural gas jumped 2.3% to 2.324, and gasoline closed up .6% to 3.3324.

Copper surged 1.8% to 3.8585, silver climbed 1.1% to 34.212, and gold gained .8% to 1711.50.

Currencies
The Dollar powered higher against most global currencies. In Europe, the Swiss Franc sank 1.2% to 1.0886, the Euro slumped 1.1% to 1.3122, and the Pound fell 1% to 1.5676. The Yen dropped 1.1% to 82.45, while the Australian Dollar slipped .7% to 1.0575. Bucking the trend, the Canadian Dollar traded flat, settling at .9906.

Economic Outlook
The US trade deficit hit $52.6 billion last month, significantly larger than the $48.9 billion forecast. Wholesale inventories rose a mere .4%, below expectations.

On Monday, earnings are due from Magic Jack and Urban Outfitters. No major economic reports are scheduled.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Climb as Bondholders Approve Greek Debt Swap

Equities
Markets rallied on Thursday in anticipation of a successful conclusion to Greece’s debt swap. The Nikkei snapped a 3-day losing streak, jumping 2% to 9769, the Kospi advanced .9% to 2001, and the ASX 200 pushed up .7% to 4171. In China, the Shanghai Composite gained 1.1% to 2420, and the Hang Seng climbed 1.3%.

European markets soared, with the DAX and CAC40 surging 2.5%, and the FTSE rising 1.2%. Car-maker, Renault, jumped 6.4% after UBS upgraded the stock to “buy” from “neutral”, lifting the auto sector 3.8%. The ECB and Bank of England both left interest rates unchanged.

US stocks rose as well, but the gains were more modest. The Nasdaq rallied 1.2%, the S&P 500 climbed 1% to 1366, and the Dow tacked on 71 points to 12908. The VIX fell 6% to 17.95, after spiking past 21 on Tuesday.

AIG shares fell 3.9% to 28.31 after the Treasury said it would sell $6 billion worth of stock. Coach shares jumped 4.6% after the CEO said business is “trending extremely well”.

Treasuries and Commodities
Bonds fell as equities advanced. 10-year notes slipped 11/32 to yield 2.01%, and 30-year notes skidded 28/32 to yield 3.17%.

Commodities traded mostly higher. In energy, gasoline gained .9% to 3.3152, crude oil rose .6%, while natural gas slumped 1.1% to 2.276, a 10-year low.

Gold gained .9% to 1698.0, silver rose .7% to 33.82, and copper closed up .5% to 3.785.

Currencies
The Euro and Swiss Franc pushed up 1% to 1.3284 and 1.1020 respectively, as the Greece debt exchange was approved by bond holders. The Canadian Dollar and Australian Dollar both climbed .8%, and the Pound rose .6% to 1.5831. The Yen fell .5% to 81.63.

Economic Outlook
Weekly unemployment claims unexpectedly rose by 8000 to 362K, 10K more than expected.

Friday’s focal report will be non-farm payrolls, which are expected to show the economy gained 209K jobs last month, down from last month’s 243K addition. The unemployment rate is expected to stay flat at 8.3%. Also due are wholesale inventories and international trade data.

Earnings are due from Ann Taylor, and Carnival Cruises.

-Bradley Welcher

Binary Options Daily Analysis – Fear Hits Markets, Dow Drops More than 200 Points

Equities
Asian markets extended their losses as concern over a slowdown in China weighed on the region. The Hang Seng tumbled 2.2% to 20806, and the Shanghai Composite sank 1.4%, as auto-maker BYD plunged 9.9%. The Nikkei shed .6% to 9638, the Kospi dropped .8% to 2000, and the ASX 200 fell 1.4%, as materials stocks sold off.

European markets plunged, amid escalating fears of a Greek default. The CAC40 tanked 3.6%, the DAX sank 3.4%, and te FTSE lost 1.9% as broad selling gripped the market. Banking shares were particularly hard-hit, as the sector skidded 5.3%, while auto-makers dropped 4.9%.

The selloff continued in the US. The Dow lost 204 points, to 12759, recording its biggest drop in 2012. The S&P 500 fell 1.5%, and the Nasdaq declined 1.4%. Materials and banking shares ld the declines amid concerns over global growth and fallout risk from Greece.

Treasuries and Commodities
Bonds gained as investors flocked to the safety of treasuries. 10-year notes rose 18/32 to yield 1.95%, and 30-year notes rallied 1 8/32 to yield 3.08%.

Commodities fell nearly universally, with metals bearing the largest burden. Copper tumbled 3.1% to 3.935, silver shed 2.4% to 32.88, and gold dropped 1.8% to 1672.90.

Crude oil declined 1.8% to 104.84, gasoline slipped .7% to 3.2361, and natural gas eased .3% to 2.349.

Currencies
Traders dumped foreign currencies for US Dollars as the market shifted to “risk off” mode. The Australian Dollar lost 1.1% to 1.0552, pressured by losses in metals. Amongst European currencies, the Pound fell .9% to 1.5720, the Euro dropped .8% to 1.3114, and the Swiss Franc declined .7% to 1.0886. The Yen benefited from the shift in risk, gaining .8% to 80.86.

Economic Outlook
Wednesday’s reports will include the ADP employment report, the Challenger job-cut report, productivity & labor costs, consumer credit, weekly oil inventories, and weekly mortgage applications.

Earnings are scheduled for American Eagle Outfitters, Children’s Place, Ciena, H&R Block, Hovnanian, and Men’s Wearhouse.

-Bradley Welcher

Binary Options Daily Analysis – Stocks and Metals Drop as China Cuts Growth Outlook

Equities
Asian markets traded lower on Monday, as disappointing growth forecasts from China weighed on the region. China expects its GDP to grow by 7.5% in the coming year, its lowest level in 8 years. The Nikkei declined .8% to 9697, the Kospi fell .9%, and the ASX 200 eased .2%. In greater China, the Hang Seng slumped 1.4% to 21265, and the Shanghai Composite lost .6% to 2445.

Greece warned the country would trigger collective action clauses (CACs) if private debt holders do not accept the latest 53.5% haircut on their debt. The move would be considered a default by Greece, and could have significant impact on the credit markets. European markets slipped, as the DAX fell .8%, the FTSE dropped .6%, and the CAC40 declined .4%.

US stocks managed to erase most of their losses, but still closed down. The Dow ticked down 15 points to 12963, the Nasdaq sank .9% to 2950, and the S&P 500 dropped .4% to 1364.

Yelp shares tanked 14.6% to 20.99 in the stock’s second day of trading, following Friday’s 60% spike. Zygna dropped 4.9% after JP Morgan downgraded the stock from “overweight“ to “neutral”.

Treasuries and Commodities
Despite weakness in the equity markets, bonds traded lower as well. 10-year notes fell 8/32 to yield 2.00%, and 30-year notes dropped 26/32 to yield 3.15%.

Natural gas plunged 5% to 2.365, and are rapidly approaching the 10-year low of 2.322 hit in January, as warm weather and weak demand continue to pressure the commodity. Crude oil rose .3% to 107.01, while gasoline eased .2% to 3.2652.

Silver sank 1.5% to 34.01 and copper fell 1% to 3.866 as China’s projected slowdown weighed on metals. Gold slipped .2% to 1706.90.

Currencies
The Dollar closed mixed in Monday’s currency trading. European currencies rose, as the Pound, Euro and Swiss Franc all gained .2%. The Australian Dollar dropped .6% to 1.0670, and the Canadian Dollar fell .5% to .9940. The Yen advanced .4% to 81.46.

Economic Outlook
The services sector grew more than expected, as the ISM non-manufacturing PMI rose to 57.3 from 56.8. Factory orders fell by 1%, but the drop was smaller than forecast.

No major economic reports are scheduled for Tuesday. Earnings are due from Dicks Sporting Goods, Pandora, and Stage Stores.

-Bradley Welcher

Binary Options Daily Analysis – Global Stocks End Mixed, Crude Erases Thursday’s Gains

Equities
Asian markets traded higher on Friday, amid signs the US economy is improving. The Nikkei climbed .7% to 9777, the Kospi rose .2%, and the ASX 200 gained .4%. The Shanghai Composite surged 1.4% after a government official said banks will increase lending to land developers, and the Hang Seng advanced .8% to 21562.

European markets closed mostly lower despite gains in financials on the heels of the latest liquidity injection by the ECB. The FTSE and CAC40 declined .3%, while the DAX edged up fractionally.

US stocks ended down, with the S&P 500 declining .3%, the Nasdaq down .4%, and the Dow down 3 points. Small-cap stocks were particularly under pressure, as the Russell 2000 sank 1.6% to its lowest level since the end of January.

Yelp shares (YELP) began trading under, soaring 64% on their opening day to 24.58, after pricing its shares at $15 a share.

Shutterfly shares spiked 16.5% after announcing plans to purchase Kodak’s online business.

Treasuries and Commodities
US bonds gained, with 10-year notes up 15/32 to yield 1.97%, and 30-year notes up 28/32 to yield 3.10%. German bonds posted even larger gains, as 10-year notes advanced .585, and 30-year notes rallied 1.27.

Crude oil slumped 2.14 to 106.70 and gasoline tanked 2.4% as Thursday’s rumors of a Saudi pipeline explosion dissipated. Natural gas rose .9% to 2.484.

Metals traded lower, led by silver’s large 3.2% drop to 34.525. Gold and copper both shed .7% to 1709.80 and 3.903 respectively.

Currencies
The Dollar posted significant gains against global currencies on Friday. The Euro and Swiss Franc both dropped .9% in a day-long slide. The Yen and Pound both sank .8%, and the Australian Dollar declined .7% to 1.0732. The Canadian Dollar fared better than its peers, easing .4% to .9891.

Economic Outlook
Monday’s reports will include factory orders and the ISM’s non-manufacturing index.

Earnings are due from Glencore and Verifone.

-Bradley Welcher

Binary Options Daily Analysis – Metals Tumble, Stocks Ease as Bernanke Fails to Offer New Stimulus

Equities
Asian markets closed mostly higher on Wednesday in anticipation of the ECB’s latest injection of liquidity. The Kospi rallied 1.3% to 2030, a fresh 6-month high, and the ASX 200 gained .8%. In China, markets were mixed, as the Shanghai Composite slumped 1%, ending an 8-day winning streak, while the Hang Seng closed up .5%. Japan’s Nikkei closed flat at 9723, surrendering a substantial 140-point advance from earlier in the day.

In Europe, markets traded lower in the afternoon, taking the lead from Wall Street. The FTSE sank 1% to 5872, the DAX skidded .5%, and the CAC40 eased fractionally. Banking shares bucked the downtrend, rising .5%.

US stocks fell, as remarks by Fed chairman, Ben Bernanke, made investors nervous. Bernanke said the job market is “far from normal” and may require additional stimulus, but failed to offer any plans of additional easing at this point. The Dow lost 54 points to 12952, the Nasdaq shed .7%, and the S&P 50 declined .5% to 1366.

Apple shares gained 1.3% to 542.44, pushing the companies market cap past the half-trillion mark to $506 billion, in anticipation of the company’s iPad 3 launch.

First Solar tumbled 11.3% after missing profit forecasts and slashing its outlook. Home builders gained after the CEO of Toll Brothers said the company “feels the best” in 5 years. Toll Brothers shares climbed 4.6%, Pulte Homes rallied 6.3%, and Lennar gained 3.9%.

Treasuries and Commodities
Bonds traded lower, as fixed-income investors were unimpressed by Bernanke’s speech. 10-year notes declined 10/32 to yield 1.98%, and 30-year notes fell 12/32 to yield 3.10%.

Energy gained, led by natural gas, which climbed 3% to 2.595. Gasoline advanced 1.2% to 3.2638, and crude oil ticked up .3% to 106.91, despite a larger than expected increase in inventories.

Metals tanked in a powerful slide. Silver plunged 7.1% to 34.555, gold plummeted 4.7% to 1703.70, and copper declined 1.3% to 3.869.

Currencies
The Dollar rallied nearly across the board. The Euro slumped 1.1% to 1.3321, the Swiss Franc dropped 1% to 1.1055, and the Yen shed 1% to 81.29. The Australian Dollar and Canadian Dollar both fell .5%..

The Bank of England’s governor, Marvin King, said he sees no need for further quantitative easing. The upbeat outlook helped the Pound overcome the broader sell off, inching up fractionally to 1.5907.

Economic Outlook
GDP data for the 4th quarter showed the economy grew at 3%, better than the 2.8% forecast by analysts. Chicago PMI rose to 64 from 60.2, significantly better than the 61.6 expected.

Thursday’s busy economic calendar will include weekly unemployment claims, ISM manufacturing index, construction spending, personal income & spending, auto sales, and chain store sales.

Earnings are scheduled for Foot Locker, Kroger, and Wendy’s.

-Bradley Welcher

Binary Options Daily Analysis – Global Stocks Rise, Energy Slides

Equities

Asian markets rallied on Tuesday, despite a bankruptcy filing by Elpida memory, in Japan. The Nikkei gained .9% to 9722, recovering from early losses, after chip-related stocks initially sold off, but later recovered. The Kospi rose .6%, as Hynix memory jumped 6.8%, and the Hang Seng surged 1.7% to 21569. The Shanghai Composite edged up .2%, and the ASX 200 posted a narrow loss.

Upbeat US consumer confidence data helped boost European markets in the afternoon. The DAX climbed .6%, the CAC40 gained .4%, and the FTSE rose .2%. The ECB will be injecting additional liquidity on Wednesday to help regional banks, which are expected to borrow 500 billion euros.

In the US, the Dow managed to close above 13000 for the first time in nearly 4 years, settling at 13005, up 24 points. The S&P 500 rose .4%, and the Nasdaq climbed .7%.

Apollo shares tumbled 16.3% after announcing that it expects a drop in enrollment.

Priceline.com rallied 7% after beating analyst profit forecasts.

Treasuries and Commodities
Bonds traded lower as risk appetite increased. 10-year notes settled down 4/32 to yield 1.94%, and 30-year notes slid 16/32 to yield 3.07%. German bonds rose with 10-year notes up .255 to yield 1.80% and 30-year notes up .56 to yield 2.41%.

Crude oil continued to drop, skidding 1.79 to 107.77. Gasoline sank 2.7% to 3.0434, and natural gas dropped 2.6% to 2.535.

Metals rallied, led by silver’s impressive 4.6% gain to 37.14. Gold advanced .7% to 1787.10, and copper rose .8% to 3.912.

Currencies
European currencies closed higher on Tuesday, as the Pound, Euro, and Swiss Franc all rose .5%. The Australian Dollar inched up .1% to 1.0771, and the Canadian Dollar gained .4% to .9952. The Yen settled flat at 80.48, after swinging up and down by .5% during the day.

Economic Outlook
Consumer confidence blew past forecasts, jumping to 70.8 from last month’s 61.5 reading, a 1-year high. The Richmond manufacturing index surged to 20 from 12, whereas analysts had expected a slide to 11.

However, not all of the economic news was positive. Durable goods, unexpected fell by 4%, reversing last month’s 3.2% gain. The Case-Shiller home price index revealed prices fell by 4% year over year, worse than expected.

Wednesday’s reports will include GDP, Chicago PMI, Beige Book, weekly mortgage applications, and weekly oil inventories.

Earnings are due from Carter’s, Costco, Joy Global, PetSmart, and Staples.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Trade Mixed as Oil Pulls Back

Equities
Asian markets traded mostly lower on Monday, as the recent spike in oil prices took its toll on stocks. The Nikkei declined .1% to 9633, although exporters gained as the yen continued to slide against the dollar. The Kospi slumped 1.4%, the ASX 200 dropped .9%, and the Hang Seng shed .9% to 2128. The Shanghai Composite bucked the downtrend, rising .3% to 2447, a 3 month high.

European markets closed lower as well. The CAC40 sank .7%, the FTSE fell .3%, and the DAX eased .2%. German Chancellor, Angela Merkel, said there was no guarantee Greece’s bailout package would succeed, dampening spirits. Banks fell 1.4%, with Societe Generale dropping 3%.

US stocks overcame early losses to close modestly higher. The Dow rose points to 12996, erasing a 100-point loss from earlier in the day The S&P 500 advanced .2% to 1369, and the Nasdaq inched up .1% to 2967.

Memory-maker, Micron Technology jumped 7.6% after its rival, Elpida Memory, filed for bankruptcy.

Dendreon shares tumbled 20.8% after announcing that demand for its prostate treatment, Provenge, is weaker than expected.

Treasuries and Commodities
Bonds rallied as the G20 called on Europe to raise more funds if it wants assistance from the outside world, suggesting additional borrowing is on the way. 10-year notes gained 15/32 to yield 1.92% and 30-year notes rallied 1 3/32 to yield 3.04%.

Energy skidded, as crude oil pulled back from its recent 7-day sprint, dropped 1.6% to 107.99. Natural gas skidded 3.3% to 2.607, and gasoline fell 1.1% to 3.118.

Gold shed 8.10 to 1768.30, and copper eased .1% to 3.858, while silver traded flat.

Wheat, soybeans, and sugar all gained more than 1% in a broad advance for agricultural futures.

Currencies
The Dollar rose against most European currencies amid uncertainty for the region. The Euro and Swiss Franc slid .4% to 1.3397 1.1119, and the Pound declined .3% to 1.5820. The Australian Dollar gained .5% to 1.0758, and the Yen bounced .6% to 80.54. The Canadian Dollar rose fractionally to .9991.

Economic Outlook
Pending home sales blew past forecasts, climbing 2% to its highest level since April 2010.

Tuesday’s reports will include durable goods, the Case-Shiller home price index, and consumer confidence.

Earnings are expected from Autozone, Cablevision, DreamWorks, First Solar, Office Depot, and Tenet Healthcare.

-Bradley Welcher

Binary Options Daily Analysis – Upbeat Economic Data Pushes S&P 500 to Multi-Year High

Equities
Asian markets advanced on Friday, following Wall Street’s gains on Thursday. The Nikkei rose .5% to 9647, the Kospi climbed .6%, and the ASX 200 gained .5%. China’s Shanghai Composite rallied 1.3% to 2440, while the Hang Seng inched up .1% to 21507.

In Europe, shares closed mostly higher, encouraged by strong earnings results from Telecom Italia, which rose 7.3%. The DAX advanced .8%, the CAC40 gained .6%, and the FTSE closed flat. Deutsche Bank jumped 4.6% after Merill Lynch upgraded the stock to “buy”.

US markets posted smaller gains, and the S&P 500 closed at its highest level in 3.5 years. The S&P 500 rose .2% to 1365.50, the Nasdaq edged up .2% to 2964, and the Dow closed flat at 12983.

Gap shares sank 4% after reporting a sharp drop in 4th quarter income. Salesforce.com rallied 9% on solid earnings data, and garnered several analyst upgrades.

Kenneth Cole soared 18.5% after announcing a plan to take the company private, and Sears shares surged 10.5% after announcing several initiatives t boost liquidity.

Treasuries and Commodities
Bonds rose with 10-year notes up 6/32 to yield 1.98%, and 30-year notes up 24/32 to yield 3.10%.

Crude oil’s powerful rally continued, climbing 1.94 to 109.77 amid mounting tensions surrounding Iran. Gasoline gained 1.3% to 3.1528, while natural gas dropped 2.7% to 2.55.

Metals traded mixed, with copper rallying 1.5% to 3.863, while gold and silver fell .6% to 1776.40, and 35.338 respectively.

Currencies
The Yen fell 1.5% to 81.20, as the recent downtrend intensified. The Dollar traded lower against its European counterparts, as the Pound advanced .8% to 1.5872, while the Euro and Swiss Franc climbed .6%. The Australian Dollar and Canadian Dollar both eased .3%.

Economic Outlook
Consumer sentiment rose to 75.3 a significant jump from last month’s 72.5 reading, hitting its highest level since February 2011. New home sales clocked in at 321K, 5K more than expected, but slightly lower than last month’s gain of 324K.

Monday’s data will include pending home sales, and the Dallas Fed’s manufacturing survey.

Earnings are due from El Paso, HSBC, Lowe’s, MBIA, Priceline.com, and Sina.

-Bradley Welcher

Binary Options Daily Analysis – Report Suggests Europe Headed for Another Recession

Equities
Asian markets traded mostly lower on Thursday, as doubts over Europe’s economic health weighed on stocks. The Kospi slumped 1% as heavyweight Samsung Electronics tumbled 3% in a broad tech drop. The ASXX 200 slipped .2%, ending a 4-day winning streak, and the Hang Seng closed down .8% to 21381. China’s Shanghai Composite managed a gain of .3% and the Nikkei rose .4% to 9596.

European markets traded mixed as DAX declined .5% to 6809, the FTSE gained .4%, and the CAC40 traded flat. A European Commission report indicated that Europe is headed for a second recession, with an expected contraction of .3% over the next year. Shares in Belgian bank, Dexia, slumped 6.5%to 6.5% after saying it may go out of business.

US stocks advanced, as stocks recovered from early losses. The Dow added 46 points to 12985, the Nadaq climbed .8% to 2957, and the S&P 500 rose .4 to 1363.50.

Shares in Vivus, surged 77.5% after an FDA panel endorsed approval of its diet pill, Qnexa.

HP shares sank 6.5% after reporting disappointing earnings, and Kohl’s dropped 5.9% after missing analyst profit forecasts.

Treasuries and Commodities
Bonds ticked up slightly, with 10-year notes up 4/32 to yield 1.99%, and 30-year notes up 9/32 to yield 3.13%.

Crude oil extended its recent advance, climbing 1.7% to 108.05, despite an larger than expected gain in inventories. Gasoline gained 1% to 3.119, while natural gas slipped 1.2% to 2.611.

Silver rallied 3.4% to 35.415, and gold edged up .6% to 1781.40. Copper declined .6% to 3.8125.

Currencies
The Euro rallied .9% to 1.3367 despite the negative outlook for the region. , The Swiss Franc climbed .9% as well, and the Australian Dollar rose .7% to 1.0706. The Pound and Yen both gained .4%, to 1.5736, and 79.98 respectively.

Economic Outlook
Weekly unemployment claims were flat from last week at 351K, marginally better than forecast. The OFHEO home price index rose by .7% more than the .2% expected.

Friday’s reports will include new home sales, and consumer sentiment.

Earnings are expected from Endo Pharmaceuticals and JC Penney.

-Bradley Welcher

Binary Options Daily Analysis – Asia Gains, West Slips, on Mixed Economic Data

Equities
Chinese manufacturing climbed to its highest level in 4 months, encouraging markets around the region. The Nikkei advanced 1% to 9554, with exporters gaining as the Yen moved back above the psychologically significant 80 level. The Shanghai Composite rallied .9% to 2404, the Hang Seng edged up .3%, and the Kospi rose .2%. In Australia, the ASX 200 erased early losses to close flat.

Meanwhile, European markets skidded on weaker than expected economic data. The service sector’s PMI data unexpectedly contracted, slipping to 49.4 from last month’s 50.4 reading. The DAX slumped .9%, the CAC40 dropped .5%, and the FTSE eased .2%.

Fitch cut its rating on Greece to C from CCC, explaining that a near term default is highly likely, despite the recent bailout efforts.

US stocks traded moderately lower as well. The Nasdaq shed .5% to 2933, the Dow slipped 27 points to 12937, and the S&P 500 declined .3% to 1358.

Dell plummeted 5.8% after earnings fell short of estimates.

Treasuries and Commodities
Concerns over the euro zone helped propel bonds higher. 10-year notes gained 16/32 to yield 2.00%, and 30-year notes advanced 1 12/32 to yield 3.14%.

Commodities traded mixed with no clear direction. Crude oil eased .3% to 105.98, while natural gas gained 1.5% to 2.665.

Gold rallied 1.2% to 1779.30, while silver ticked up fractionally, and copper settled flat.

Wheat climbed 1.8%, while cotton slumped 2.6%, and coffee fell 2%.

Currencies
The Dollar traded mostly higher against global currencies. The Pound sank .7% to 1.5668, the Australian Dollar fell .3% to 1.0635, and the Swiss Franc lost .2%. The Yen declined .7% to 80.29. The Euro inched up .1% to 1.3244, after trading in a narrow range all day.

Economic Outlook

January’s existing home sales data was strong, rising by 4% to a 1.5 year high. However, the gains were based on a steep downward revision of December’s data, so the results fell shy of expectations. Mortgage applications declined last week.

Thursday’s reports will include weekly unemployment claims, the FHFA home price index, and weekly inventory data for crude oil and natural gas.

Earnings are expected from AIG, Autodesk, Crocs, Dillard’s, Dish Network, Gap, MetroPCS, Marvell, Officemax, Safeway, Salesforce, Target, and WebMD.

-Bradley Welcher

Binary Options Daily Analysis – Greece Secures Bailout Package, Commodities Jump

Equities
Greece received approval for its long awaited bailout package from lawmakers, but Asian markets traded mixed on the news. The Nikkei eased .2% to 9463, as Mazda shares tumbled 10% after announcing it would raise $2 billion in a share offering. The ASX 200 advanced .8%, the Hang Seng edged up .3%, and the Shanghai Composite climbed .8%. Korea’s Kospi closed flat, as significant losses in ship builders offset gains in other sectors.

European markets declined, as the Greek debt deal failed to inspire investors. The DAX shed .6%, the FTSE dropped .3%, and the CAC40 slid .2%.

The Dow briefly crossed the 13000 mark for the first time since May 2008, but failed to hold those gains as US stocks ended mixed. The Dow settled at 12966, up 16 points, the S&P 500 inched up .1% to 1362, while the Nasdaq slipped .1% to 2949.

Wal-Mart shares slumped 3.9% after reporting disappointing earnings.

Surging oil prices pressured airline stocks, sending US Airways and Delta Airways tumbling 11.4% and 7.2 respectively.

Treasuries and Commodities
Bond prices fell as the risk of a Greek default passed. 10-year notes declined 16/32 to yield 2.06%, and 30-year notes fell 1 4/32 to yield 3.21%.

Oil jumped 2.4% to 106.12, and gasoline advanced 1.7% to 3.066, while natural gas dropped 2.1% to 2.628.

Metals rallied across the board. Silver surged 3.5% to 34.37, copper bounced 3.1% to 3.8245, and gold traded up 2.1% to 1761.50.

Currencies
The Australian Dollar dropped .7% to 1.0666, despite the spike in metal prices, as the US Dollar gained. The Pound slipped .4% to 1.5784, the Canadian Dollar declined .3% to .9966, and the Yen eased .1% to 79.72. The Euro and Swiss Franc closed flat.

Economic Outlook
Wednesday’s key report will be existing home sales, which analysts expect to rise to an annualized rate of 4.66M. Also due are weekly mortgage applications.

Earnings are due from Dollar Tree, Hertz, Hewlett-Packard, Limited Brands, MGM, and Toll Brothers.

-Bradley Welcher

Binary Options Daily Analysis – China Eases Reserve Requirements, Stocks Rally

Equities
China announced a new stimulus plan to cut bank reserve requirements, pushing up most markets in the region, although much of the initial gains did not last. The Nikkei advanced 1.1% to 9427, and the ASX 200 rallied 1.4%, as miners jumped, encouraged by the Chinese announcement. China’s Shanghai Composite rose as much as 1.3%, but closed up a mere .2%, and the Hang Seng declined .3%, as energy shares sold off. Korea’s Kospi inched up .1%, sliding back from a 6-month high.

European markets rallied, with the DAX leading the advance, climbing 1.5% to 6948. The CAC40 gained 1% to 3473, and the FTSE rose .7% to 5945. JPMorgan said the DAX is its preferred European index, contributing to outsized gains for the German benchmark.

US stock and bond markets were closed for Presidents Day.

Commodities
Metals advanced on expectations that China’s easing efforts will boost demand. Copper and silver climbed 1.1%, and gold rose .6% to 1735.50.

Oil surged 1.6% to 104.92, and gasoline traded up 1.2% to 3.0511, while natural gas sank 2.6% to 2.615.

Currencies
The Dollar declined, as expectations for a successful Greek bailout encouraged risk taking. The Euro advanced .7% to 1.3241, and the Swiss Franc push up .8% to 1.0967. The Australian Dollar rose .4% to 1.0752, and the Canadian Dollar gained .3%% to .9938. The Yen closed flat after touching a 6-month low of 79.70.

Economic Outlook
Tuesday’s sole report will be the Chicago Fed’s national activity index.

Earnings are due from Barnes & Noble, Cheesecake Factory, Chesapeake Energy, Dell, Home Depot, Kraft Foods, Macy’s, Saks, and Wal-Mart.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Trade Higher on Greek Hopes, Economic Data

Equities
Thursday’s rally on Wall Street gave Asian markets a boost on Friday. The Nikkei jumped 1.6% to 9384, the ASX 200 added .3%, and the Kospi gained 1.3%, as Samsung Electronics advanced 3.6% to a record closing high. In greater China, the Hang Seng rallied 1% to 21692, while the Shanghai Composite closed flat.

Expectations for an imminent Greek bailout lifted European markets. The DAX and CAC40 climbed 1.4%, and the FTSE edged up .3%. Shares in Lafarge, the world’s largest cement maker, soared 8.3% after the company announced it would cut costs to offset losses tied to Greece.

US stocks traded mixed in light trading, as traders prepared for the long weekend. The Dow added 46 points to 12950, the S&P 500 rose .2%, and the Nasdaq declined .3%.

In the biotech world, Vivus shares surged 7.3% o hopes the FDA would approve its diet pill, while Gilead Sciences tumbled 14.3% after announcing disappointing news concerning its experimental Hepatitis C drug.

Heinz shares rallied 4.56% after beating analyst forecasts, and Campbell soup climbed 2.6% on solid earnings.

Treasuries and Commodities
Bonds traded modestly lower, with 10 and 30-year notes declining 6/32 to yield 2.00% nd 3.15% respectively.

Natural gas spiked 4.6% to 2.684, extending its gains from Thursday, as the wild volatility in natural gas continued. Crude oil gained .9% to 103.24, while gasoline fell 1% to 3.0156.

Copper slumped 2.2% to 3.708, leading metals lower. Silver fell .5% to 33.216, and gold edged down .1% to 1725.90.

Wheat advanced 2.4%, and corn rose .9%.

Currencies
The Yen continued to drop, shedding .8% to 79.57. The Pound rose .2% to 1.5831, and the Euro inched up .1% to 1.3148, while the Swiss Franc and Canadian Dollar traded flat. The Australian Dollar declined .4% to 1.0712.

Economic Outlook
Leading indicators rose to a 3.5 year high of 94.1, up .4%, posting its 4th straight monthly gain. CPI data showed prices rose .2%, slightly less than expected.

US markets will be closed on Monday for President’s Day.

-Bradley Welcher

Binary Options Daily Analysis – US Stocks Rally on Upbeat Economic Data

Equities
Asian markets skidded on Thursday, as another delay in Greece’s bailout package unnerved investors. The Kospi slumped 1.4% to 1997 as shipbuilders dropped, and the ASX 200 shed 1.7%, pulled down by disappointing earnings from Westpac, a major bank. The Hang Seng and Shanghai Composite both fell .4%, and the Nikkei edged down .2%.

European markets closed little changed, as an afternoon rally helped erase earlier losses. The FTSE and DAX declined .1%, while the CAC40 gained .1%. Greece reached an agreement with lenders on additional budget cuts for 325 million euro, bringing the resolution of the situation a step closer.

US stocks rallied thanks to upbeat economic data, led by tech shares. The Nasdaq jumped 1.5%, the Dow climbed 123 points to 12904, and the S&P 500 advanced 1.1% to 1358.

GM shares soared 9% after reporting record profits, even though the figure fell shy of expectations. Groupon shares jumped 4.1% after announcing plans for a new VIP subscription service.

Amazon shares dropped 2.5% to 179.93 after Morgan Stanley downgraded the stock to “equal weight” from “over weight”.

Treasuries and Commodities
The stock market rally pushed down bond prices. 10-year notes slipped 16/32 to yield 1.98%, and 30-year notes dropped 30/32 to yield 3.14%.

Natural gas surged 5.9% to 2.569, leading energy higher. Crude oil gained .6% to 102.37, and gasoline rose 1.2% to 3.0424.

Metals traded modestly higher. Gold inched up .1% to 1730, copper gained .2%, and silver edged up .3% to 33.51.

Currencies
The US Dollar skidded on Thursday, as market participants shifted in to “risk on” mode. The Pound climbed .7% to 1.5802, the while the Euro, Swiss Franc, and Australian Dollar all advanced .6%. The Canadian Dollar rose .3% to .9970. Bucking the uptrend, the Yen dropped .7% to 78.91, extending its recent declines.

Economic Outlook
Thursday’s busy economic calendar was full of positive economic news. Weekly jobless claims unexpectedly fell by 13K to 348K. Analysts had expected a slight increase to 364K from last week’s 361K. Housing starts also surprised analysts, climbing to 700K, from last month’s annualized rate of 690K. Building permits rose to 680K, inline with estimates, and PPI jumped to .4% from last month’s .1% increase. Finally the Philly Fed manufacturing index blew past estimates, jumping to 10.2 from last month’s 7.3 reading

Friday’s economic calendar will include CPI and leading indicators.

Earnings are due from Campbell Soup, Heinz, Pilgrim’s Pride, and Ventas.

-Bradley Welcher

Binary Options Daily Analysis – Asian Stocks Rally, US Slides

Equities
Asian markets jumped on Wednesday, as angst over Greece’s debt troubles waned. The Nikkei soared 2.3% to 9260, its highest level in August. In Korea,the Kospi rallied 1.1% to 2052, a 6-month high, as Samsung Electronics and Hynix Memory both surged more than 5%. Hong Kong’s Hang Seng rallied 2.1%, and the Shanghai Composite climbed .9%, encouraged by comments that China will continue to purchase European sovereign debt.

European shares traded mixed. The CAC40 and DAX advanced .4%, while the FTSE slipped .1%. Heineken shares soared 3.7% and BNP Paribas jumped 4.1% after both companies exceeded analyst profit forecasts.

US stocks dropped, as investors shrugged off upbeat economic data. The Dow skidded 97 points to 12781, the Nasdaq dropped .6%, and the S&P 500 fell .5%. The minutes from the last FOMC meeting revealed that some Fed officials believe another round of asset buying will be needed to prop up the economy, spooking investors.

Apple shares skidded 2.3% to 497.67, pulling back from its record high.

Several companies surged on impressive earnings data. Comcast shares climbed 4.9%, Dean Foods rocketed up 10.3%, and Abercrombie & Fitch rallied 8.3% on upbeat earnings reports.

Zygna shares tumbled 17.8% despite reporting earnings which exceeded forecasts.

Treasuries and Commodities
Bonds traded mixed with 10-year notes up 2/32 to yield 1.93%, while 30-year notes slipped 6/32 to yield 3.10%.

Commodities traded mixed, with no clear direction within the major groups. In energy, crude oil advanced 1.2% to 101.94, and gasoline rose .8% to 3.0065, while natural gas slumped 3.8% to 2.436.

Gold gained .7% to 1729.10, silver inched up .1% to 33.39, while copper declined .2% to 3.806.

Currencies
The Euro fell .5% to 1.3067, and the Swiss Franc declined .3% to 1.0834. The Pound, Australian Dollar, and Canadian Dollar all closed within .1% of their previous close. The Yen ticked up .1% to 78.35 after Tuesday’s steep drop.

Economic Outlook
The Empire state manufacturing survey jumped to 19.5, blowing past forecasts of 14.7, and a sharp advance from last month’s 13.5 reading. The NAHB housing market index rose to 29, its highest level since 2007, another sign that the real estate market is turning around. Industrial production came in flat, below estimates for a .7% gain.

Thursday’s reports will include housing starts, PPI, the Philadelphia Fed survey, and weekly jobless claims.

Earnings are due from Agilent, Applied Materials, Baidu, GM, Nordstrom, and Waste Management.

-Bradley Welcher

 

Binary Options Daily Analysis – Moody’s Warns of Debt Downgrades for UK and France

Equities
Asian markets traded mixed on Tuesday. The Nikkei advanced .6% to 9052, as the Bank of Japan announced another $130 billion asset buying plan. The news weakened the yen, which pushed up exporters. Australian shares dropped 1%, weighed down by miners, and the Kospi eased .2%, as steel makers tumbled more than 3%. The Hang Seng ticked up .2% to 20918, while the Shanghai Composite slipped .3% to 2345.

Moody’s downgraded the debt of 6 European countries, and warned it may downgrade the debt of the UK, Austria, and France, all of which have Aaa ratings.

European shares traded slightly lower, unfazed by the rating move. The CAC40 slipped .3%, the DAX declined .2%, and the FTSE eased .1%.

US stocks closed little changed as the Dow rose 4 points to 12878, the Nasdaq traded flat, and the S&P 500 edged down .1%.

Yahoo shares tanked 4.7% to 15.37, on news that negotiations with Softbank and Alibaba over the sale of Yahoo’s Asian assets have stalled.

Zynga share jumped 7% ahead of its earnings report. After hours, the shares fell 7%, erasing all of their gains, even though the company exceeded analyst estimates.

Treasuries and Commodities
US bonds gained, with 10-year notes up 10/32 to yield 1.94%, and 30-year notes up 21/32 to yield 3.09%.

Natural gas soared 4.8% to 2.547, as the energy commodity continues to experience wild daily swings. Crude oil gained .2% to 101.07, while gasoline fell .8% to 2.9899.

Metals traded lower as silver lost .7% to 33.485, copper fell .6% to 3.8185, and gold dipped .3% to 1720.60.

Currencies
The Yen tumbled 1.2% to 78.51 falling to a 3-month low, while the Dollar traded modestly higher against other currencies. The Pound and Euro both slid .4%, and the Swiss Franc ticked down .3% to 1.0865. The Australian Dollar lost .3% to 1.0683, and the Canadian Dollar declined .2% to .9990.

Economic Outlook
US retail sales data was disappointing, rising just .4% last month, as opposed to a forecast of .8%. On the bright side, core retail sales rose .7%, slightly more than the .6% expected. Business inventories and import prices were both inline with estimates.

Wednesday s extremely busy economic calendar will include the Empire state manufacturing survey, industrial production, housing market index, weekly oil inventories, FOMC minutes, credit card default rates, and weekly mortgage applications.

Earnings are scheduled for CBS, Abercrombie & Fitch, Comcast, Deere, Nvidia, Marriott, NetApp, NetEase, Tesla Motors, and Vonage.

-Bradley Welcher

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