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Binary Options Daily Analysis – Asia Plunges on Greece and China Fears

Equities
Asian markets tanked on Wednesday, as the political deadlock in Greece escalated fears that Greece may exit the euro zone. Fears of a slowdown in China added to the anxiety, as data showed loan growth stalled in the first half of May. The Shanghai Composite fell 1.2%, and the Hang Seng plunged 3.2%, as Chinese banks dropped sharply. Japan’s Nikkei shed 1.1% to 8801, the Kospi sank 3.1% to 1841, and the ASX 200 slumped 2.4%.

The leading European indexes closed mixed, as the CAC40 edged up .3%, while the FTSE dropped .6%, and the DAX slipped .3%. Shipping giant, Maerk issued a cautious outlook on freight rates due to economic slowness, sending its shares down 6.5%.

German Chancellor Angela Merkel said Germany wants Greece to stay in the euro, but rumors the ECB may stop dealing with certain Greek banks undermined her remarks.

US stocks ended lower in a volatile session. The Dow slipped 33 points to 12599, the Nasdaq dropped .7% to 2874, and the S&P 500 fell .4% to 1325.

JC Penny shares plunged 19.7% after reporting a loss which was larger than forecast, and Abercrombie & Fitch tumbled 13% on weak sales data.

Treasuries and Commodities
Bonds rose moderately, with 10-year notes up 3/32 to yield 1.76%, and 30-year notes climbed 14/32 to yield 2.9%.

Natural gas surged 5% to 2.625, while the rest of energy fell. Crude oil skidded 1.3% to 92.79, and gasoline sank 1.1 to 2.9108.

Silver dropped 3.4% to 27.12, gold slumped 1.3% to 1536,60, and copper dropped 1.1% to 3.478.

Agricultural futures soared, as wheat advanced 5%, and corn surged 3.8%.

Currencies
Wednesday was another winning day for the US Dollar. The Pound and Canadian Dollar both dropped .6%, while the Euro and Swiss Franc edged down .2%. The Australian Dollar slid .4% to .9905, and the Yen eased .1% to 80.30.

Economic Outlook
Housing data was mixed, as housing starts rose to .72M from .7M, beating estimates, while building permits fell to .72< from .77M, below estimates. Industrial production increased by 1.1%, beating estimates. The Fed’s minutes showed several policymakers favored additional easing efforts if the economic recovery stagnates.

Thursday’s reports will include weekly unemployment claims, the Philly Fed survey, leading indicators, and e-commerce retail sales.

Earnings are due from Aeropostale, Children’ Place, Dollar Tree, Gap, Marvell Technology, and Wal-Mart.

Facebook’s IPO will be priced on Thursday, and begin trading on Friday.

-Bradley Welcher

Binary Options Daily Analysis – Fear Continue to Rise as Greece Fails to Form a Government

Equities
Asian markets dropped on Tuesday, as fears of a Greek exit from the euro escalated. The Nikkei lost .8% to 9901, the ASX 200 fell .7%, and the Kospi shed .8%. China’s Shanghai Composite eased .3% to 2375, while the Hang Seng rallied .8%, snapping a 7-day losing streak.

European indexes extended their losses, as banking shares tumbled 3.4%. The DAX fell .8%, the CAC40 dropped .6%, and the FTSE sank .5%. Greece;s stock market tumbled 3.6%, hitting a 22-year low, and Spain’s IBEX fell 1.6%.

US markets fared no better. The Dow fell 63 points to 12632, the S&P 500 declined .6% to 1331, and the Nasdaq edged down .3%.

Home builders rallied after the NAGB housing market index jumped to 29, blowing past forecasts for 26, climbing to a 5-year high. Lennar jumped 2.8% and DRHorton cllimbed 2.5%.

Chesapeke Energy sank 5.6% after S&P cut its bond rating to BB- from BB.

Zynga surged 7.8% as investor fever grew in anticipation of Facebook’s IPO this Friday.

Treasuries and Commodities
Bonds settled little changed, with 10-year notes down 1/32 to yield 1.77%, and 30-year closing flat to yield 2.92%.

Crude oil continued to slide, slumping 1.7% to 93.19, and gasoline fell .6% to 2.942. Natural gas bounced 2.8% to 2.50.

Metals posted steep losses. Silver tumbled 2.6% to 2.62, copper fell 1.8% to 3.4895, and gold dropped 1.1% to 1543.20.

Agricultural futures rallied, as corn climbed 2.4%, soybeans advanced 1.9%, and wheat gained 1.7%.

Currencies
The Dollar index climbed to a 4-month high as the Euro zone debt crisis continues to grow. The Euro fell .9% to 1.2717, a 4-month low, and the Swiss Franc dropped 1% to 1.0689. The Pound sank .8% to 1.5965, breaking through the 1.60 level, and the Canadian Dollar dropped .7% to 1.01. Even the Yen struggled, declining .5% to 80.37.

Economic Outlook
Tuesday’s economic data was mixed. Retails sales rose a mere .1%, below estimates for a .2% gain. However, the Empire State manufacturing index surged to 17.1 from last month’s 6.6, blowing past forecasts of 9.3. Business inventories rose .3%, less than expected, and CPI was flat.

Wednesday’s reports will include housing starts, building permits, industrial production, weekly mortgage applications, weekly oil inventories, and the FOMC minutes.

Earnings are due from Abercrombie & Fitch, Deere, Limited Brands, NetEase, Staples, and Target.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Drop as Euro Zone Fears Escalate

Equities
Asian markets closed mostly lower, as the latest Greek drama raised anxiety. In China, the Shanghai Composite fell .6% to 2381, despite the central bank’s latest cut in reserve requirements which was announced over the weekend. The Hang Seng dropped 1.2% to 19735, its 8th straight loss, and the Kospi eased .2% to 1914. On the upside, the Nikkei edged up .2% to 8974, and the ASX 200 rose .3% to 4297.

European markets tanked, as concerns over an economic slowdown, Greece, and Spain, combined. The CAC40 tumbled 2.3%, the FTSE slumped 2%, and the DAX dropped 1.9%. In Spain, the IBEX fell 2.7%, while credit default swaps on Spain’s 5-year notes spiked to record highs.

US stocks dropped as well, but the losses were more moderate. The Dow fell 125 points to 12695, while the Nasdaq and S&P 500 both shed 1.1%, to 2903 and 1338, respectively. The rise in fear pushed the VIX up 10% to 21.87, its highest leve since January.

Groupon skyrocketed 18.6% ahead of its earnings announcement.

Treasuries and Commodities
Bonds posted large gains, with 10-year notes up 18/32 to yield 1.77%, and 30-year notes up 1 17/32 to yield 2.93%.

Commodities sold off, as China’s latest easing effort was seen as a warning sign of further slowness. In energy. Crude oil fell 2.1% to 94.16, natural gas sank 3.5% to 2.421, and gasoline dropped 1.7% to 2.949.

Copper led metals lower, tumbling 3.5% to 3.5215. Silver sank 2.4% to 28.185, and gold shed 1.7% to 1557.90.

Currencies
The US Dollar benefited from the flight to safety, gaining against most currencies. The Euro and Swiss Franc fell .6%, and the Australian Dollar fell .5% to .9970, slipping below parity. The British Pound managed a small gain of .2% to 1.6100, and the Yen inched up less than .1% to 79.87.

Economic Outlook
Tuesday’s busy economic calendar will include CPI, the Empire State manufacturing index, retail sales, business inventories, and the NAHB housing market index.

Earnings are due from Dick’s Sporting Goods, Home Depot, JC Penney, Saks, TJX, and Valspar.

-Bradley Welcher

Binary Options Daily Analysis – China’s Factory Output Way Below Estimates

Equities
Asian markets declined on Friday as a huge hedging loss by JPMorgan shook up investors. The Nikkei dropped .6% to 8953, as Sony fell 6.4% after reporting la large loss, although Nikon jumped 8.6% on earnings which exceeded forecasts. In China, factory output grew much slower than forecast, while inflation data was in line with estimates. The Shanghai Composite declined .6%, and the Hang Seng sank 1.3% to 19964, down 5.3% for the week. The Kospi fell 1.4% to 1917, the ASX eased .2%.

An afternoon rally lifted European markets, thanks to upbeat consumer confidence data from the US. The DAX rallied 1%, the FTSE climbed .6%, and the CAC40 settled flat. Bucking the uptrend, Greece’s main index tanked 4.5%, after the parliament was unable to form a coalition.

US stocks settled mixed, surrendering earlier gains. The Dow declined 34 points to 12821, the S&P 500 dropped .3% to 1353, while the Nasdaq closed f

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JP Morgan plunged 9.3% to 36.96 after revealing that it had lost more than $2 billion in a failed hedging strategy. The news pulled down the financial sector, with Citigroup and Morgn Stanley down 4.2%, while Goldman Sachs dropped 3.9%.

Nvidia jumped 6.4% after reporting earnings which beat estimates, and raising its outlook.

Treasuries and Commodities
Bonds rose, with 10-year notes up 8/32 to yield 1.84%, and 30-year notes up 25/32 to yield 3.01%.

Crude oil fell .95 to 96.13, while natural gas gained .8% to 2.509.

Currencies
The Dollar traded moderately higher against global currencies, amid concerns of a China slowdown. The Pound fell .4% to 1.6068, and the Australian Dollar slipped .3% to 1.0024. The Euro and Swiss Franc both eased .1%, and the Yen closed down 4 pips to 79.93. The Canadian Dollar managed a gain of .2% to 1.0010, following the release of upbeat employment data.

Economic Outlook
Consumer sentiment exceeded forecasts, climbing to 77.8 from 76.4, while PPI slipped .2%. Analysts had expected both figures to remain flat.

No major economic reports are due on Monday. Earnings are scheduled for Agilent and Groupon.

Binary Options Daily Analysis – Europe Gains on Greek Coalition Hopes

Equities
Disappointing trade data weighed on Asian markets on Thursday, as imports grew much less than expected. The Nikkei declined .4% to 9010, the Kospi slid .3%, and the Hang Seng dropped .5% to 20227. Ironically, the Shanghai Composite inched up .1%, but the trade data limited gains. Australia’s ASX 200 advanced .5% following a report that showed unemployment unexpectedly fell below 5%.

European markets closed higher, recovering from earlier losses, as rumors of a coalition deal in Greece helped ease anxiety. The DAX climbed .7% to 6518, the CAC40 rose .4%, and the FTSE gained .3%. Banks rallied 4.2%, rebounding after Wednesday’s 3.3% loss.

In the US, the Dow rose 20 points to 12855, snapping a 6-day losing streak. The S&P 500 gained .3% to 1358, while the Nasdaq closed down 1 point to 2934.

Cisco tumbled 10.5% to 16.81 after issuing disappointing guidance, even though earning beat expectations. Juniper fell 4.9% and Salesforce.com tumbled 9.1%, as fears of a slowdown hit the sector.

Kohl’s fell 4.3% after reporting weak earnings, while News Corp. rallied 4.9% after beating forecasts and announcing a new $5 billion buyback plan.

Treasuries and Commodities
Bond prices fell with 10-year notes down 8/32 to yield 1.88%, and 30-year notes fell 18/32 to yield 3.05%. In the UK, 10-year notes sank .82 to yield 1.99% and 30-year notes dropped .945 to yield 3.26%.

Crude oil closed down 7 cents to 96.74, extending its losing streak to 7, and gasoline fell .9% ti 2.998. Natural gas rose .5% to 2.476.

Metals settled mixed as copper gained .6%, silver fell .6%, and gold closed flat at 1594.

Cotton plummeted 4.7%, and corn tumbled 3.3%, while soybeans rallied 1.8%.

Currencies
The currency markets traded in a narrow range on Thursday. The Euro, Swiss Franc, British Pound, and Canadian Dollar all edged up .1%. The Australian Dollar climbed .6%, lifted by upbeat employment data. The Yen dropped .4% to 79.99.

Economic Outlook
Weekly unemployment claims improved by 1K to 367K, better than the 371K forecast. The US trade deficit widened to $51.8B, blowing past estimates of $49.8B, jumping $6.4B over the last month. Import prices fell .5%, more than the .1% forecast.

Friday’s economic calendar will include PPI and consumer sentiment.

Earnings are due from Dillard’s, Nissan, and Nvidia.

-Bradley Welcher

Binary Options Daily Analysis – Dow Drops for 6th Straight Day on European Debt Worries

Equities
Asian markets slumped on Wednesday, as fears over Greece’s political fate spooked investors. The Nikkei dropped 1.5% to 9045, while the Kospi and ASX 200 both slumped .9%. China’s Shanghai Composite sank 1.7%, and the Hang Seng shed .8%, as Chinese oil companies fell sharply due to the drop in oil.

European banks tanked, dropping 3.3%, although the major European indexes closed mixed. The FTSE fell .4%, the CAC40 slipped .2%, while the DAX gained .5%.

US stocks closed lower, but once again managed to erase most of their early losses. The Dow fell 97 points to 12835, extending its losing streak to 6 days. The Nasdaq fell .4% to 2935, and the S&P 500 skidded .7% to 1355.

Macy’s fell 3.7% despite reporting earnings which beat estimates, after the company failed to raise its full-year profit forecast.

MetroPCS soared 17.8% on news the company is exploring a merger with T-Mobile.

Treasuries and Commodities
10-year notes closed up 3/32 to yield 1.83% following a $24 billion auction, with a high-yield of 1.855%, and a bid-to-cover ratio of 2.90. 30-year notes closed flat, with the yield at 3.03%.

Crude oil slipped for its 6th straight day, settling down .5% to 96.55. Gasoline gained .7% to 3.0154, and natural gas rallied 2.1% to 2.443.

Metals traded lower, as gold fell .8% to 1591.70, silver dropped .5% to 29.30, and copper shed .4% to 3.6635.

Wheat tumbled 2.4%, and corn fell 2.5%.

Currencies
The Euro fell below 1.30 to 1.2941, down .5% as mounting concerns over Greece and Spain continue to pressure the single-currency. The Swiss Franc also declined .5% to 1.0776, continuing to move in lock-step with the Euro. The Pound eased .1% to 1.6141, the Australian Dollar fell .6% to 1.0056, and the Canadian Dollar slipped .2% to 1.0013, crossing below parity. Bucking the downtrend, the Yen edged up .3% to 79.62.

Economic Outlook
A report released on Wednesday suggests Spain will need another $45 billion to aid its banking industry, implying another bailout will be needed.

Wholesale inventories rose by just .3%, less than the .6% forecast, suggesting demand is growing. Weekly mortgage applications rose last week for its 3rd straight week.

Thursday’s reports will include international trade, import prices, and weekly unemployment claims.

Earnings are due from Kohl’s, MBIA, Nordstrom, Sony, and Sotheby’s.

-Bradley Welcher

Binary Options Daily Analysis – European Markets Tumble on Political Fears

Equities
Asian markets traded mostly higher, as the region rebounded from Monday’s slide. The Nikkei gained .7% to 9182, the Kospi rose .5% to 1967, and the ASX 200 edged up .3%. In greater China, markets closed lower, as he Hang Seng slipped .3% to 20485, and the Shanghai Compite eased .1% to 2449, snapping a 4-day winning streak.

The newly elected leftist leader of Greece, Alexis Tsipras rejected the terms of the international Greek bailout, raising the likelihood the heavily indebted country will be unable to raise further capital from the European bailout funds. European markets sank, as the CAC40 tumbled 2.8%, the DAX slumped 1.9%, and the FTSE fell 1.8%. In Greece, the Athens General Index dropped 3.6% to 620.52, its lowest level since 1992, extending Monday’s steep 7% drop.

US Stocks closed down, but fared much better than their European peers. The Dow had dropped as much as 198 points in the early morning, but mostly recovered to close down 76 points to 12932. The S&P 500 and Nasdaq both shed .4%.

Wendy’s sank 4.1% after earnings fell short of estimates, and McDonald’s slumped 2.1% on disappointing same store sales. Wynn Resorts fell 4.8%, on weak profits due to weak demand in its Las Vegas casinos.

Treasuries and Commodities
Bonds rose, with 10-year notes up 8/32 to yield 1.84%, and 30-year notes up 14/32 to yield 3.04%. The Treasury auctioned $32 billion in 3-year notes, with a high-yield of .362% and a bid-to-cover ratio of 3.65.

Metals tanked, as copper sank 2.3% to 3.685, and silver dropped 2.1%. Gold fell 2% to 1606.70, briefly dropping as low as 1595.50, their lowest level in 4 months.

Natural gas rallied 4.5% to 2.443, and gasoline climbed 1% to 3.0033, while crude oil fell for its 5th straight do to 97.29, down .7%.

Currencies
The drop in metals pressured the Australian Dollar, which fell .7% to 1.0114, due to its position as a major metal exporter. The Euro and Swiss Franc both declined .6%, and the Canadian Dollar slipped .3% to .9985. The Pound and Yen both closed up fractionally.

Economic Outlook
The possibility of a Greek default may become a reality if the newly elected government can form a coalition, and the markets will be very sensitive to the ongoing political developments.

The TIPP economic optimism index unexpectedly fell to 48.5 from 49.3, remaining below the key 50 mark.

Wednesday’s reports will include wholesale trade, weekly mortgage applications and weekly oil inventories.

Earnings are due from Activision, AOL, Cisco, Macy’s, Priceline, Tesla Motors, and Toyota.

-Bradley Welcher

Binary Options Daily Analysis – Asia Tumbles as France and Greece Replace Incumbents

Equities
Asian markets tumbled on Monday, following Friday’s weak US jobs data, and as elections in France and Greece replaced the incumbents. The Nikkei plunged 2.8% to 9119, a 3-month low after returning from a holday, and the Kospi sank 1.6% to 1956. Australia’s ASX 200 tanked 2.2%, its biggest loss of 2012, as mining giants Rio Tinto and BHP Billiton both slumped more than 4%. The Hang Seng tumbled 2.6%, while the Shanghai Composite closed flat.

European markets gained, but volume was light due to a bank holiday in the UK. The CAC40 rallied 1.7%, and the DAX edged up .1%.

US stocks ended mixed, as the Dow declined 30 points to 13009, while the Nasdaq and S&P 500 inched up fractionally.

Vertex pharmaceuticals surged 55% after reporting a successful clinical trial for its cystic fibrosis drug.

Treasuries and Commodities
Bonds closed little changed, as 10-year notes closed flat, while 30-year notes ticked up 3/32 to yield 3.07%.

Crude oil declined .4% to 98.06, while natural gas climbed 2.4% to 2.333. Gasoline edged up .2% to 2.9803.

Copper advanced 1% to 3.757, while precious metals dropped. Silver fell 1.2% to 30.07, and gold declined .4 to 1638.70.

Currencies
The Euro fell as low as 1.2962, but mostly recovered to close down .2% to 1.3052, while the Swiss Franc slipped .3% to 1.0863. The Pound and Canadian Dollar gained .2%, and the Australian Dollar inched up .1%. The Yen eased fractionally to 79.90.

Economic Outlook
Consumer credit blew past estimates, surging to 21.4B from last month’s 9.3B. The increase was the largest since November 2001.

The election results from Greece could have a significant impact on the Euro zone, since the key players involved in passing the austerity measures failed to gain reelection.

Tuesday’s lone report will be the NFIB small business index, which is expected to rise moderately from 50.3 to 49.3.

Earnings are due from DirecTV, HSBC, Disney, Officemax, Tenet Healthcare, and Wendy’s.

-Bradley Welcher

Binary Options Daily Analysis – Stocks and Energy Tumble as Payroll Data Falls Short

Equities
Asian markets traded mostly lower ahead of the key US payroll report. The Hang Seng fell .8% to 21086, the ASX 200 dropped .7%, and the Kospi eased .3% to 1989. China’s Shanghai Composite once again gained, in anticipation of a new round of government easing. Markets in Japan remained closed for a holiday.

Weaker than forecast US jobs data sent Western shares sharply lower. The non-farm payroll report indicated the economy had added just 115K jobs, significantly weaker than the 170K expected.

The FTSE and CAC40 both dropped 1.9%, and the DAX slumped 2%. Nokia shares tumbled 7.3% after the board elected a new chairman on Thursday.

The Dow dropped for its 3rd straight session, erasing 168 points to 13038. The Nasdaq tumbled 2.3% to 2956, and the S&P 500 dropped 1.6% to 1369.

LinkedIn surged 7.2% after beating forecasts on both profits and revenue, prompting multiple upgrades.

Netflix shares skidded 3.7% to 73.15, and Apple shares sank 2.9% to 565.25.

Treasuries and Commodities
Fears over a slowing recovery pushed up bonds. 10-year notes gained 15/32 to yield 1.88%, and 30-year notes climbed 29/32 to yield 3.07%.

Energy was also heavily hit by growth fears. Crude oil tumbled 4% to 98.49, natural gas dropped 2.6% to 2.279, and gasoline slid 2.4% to 2.9758.

Metals traded mixed, as precious metals gained, while copper fell .4% to 3.721. Gold rose .6% to 1645.20, and silver advanced 1.4% to 30.432.

Currencies
The Dollar traded higher as traders shifted into “risk off” mode. The Australian Dollar sank .8% to 1.0188, and the Canadian Dollar dropped .6% to .9952. The Euro and Swiss Franc both dropped .5%, while the Pound eased a modest .2%. The Japanese Yen benefited from the flight to safety, climbing .4% to 79.87.

Economic Outlook
Despite the disappointing payroll number, the unemployment rate improved slightly, slipping to 8.1%, its best level since 2009. In Canada, the Ivey PMI report clocked in at 52.7, far below estimates of 62.6.

Monday’s sole US report will be consumer credit. Earnings are due from Dish Network, Electronic Arts, Pitney Bowes, RackSpace, Tyson Foods, and Wynn Resorts.

-Bradley Welcher

Binary Options Daily Analysis – ISM Data Disappoints, Pushing Down Stocks and Commodities

Equities
Asian markets posted narrow losses following Wednesday’s disappointing economic news from the West. The Kospi and ASX 200 both declined .2%, and Hong Kong’s Hang Seng dropped .3%, as Chinese banks dropped. Bucking the slide, China’s Shanghai Composite inched up 2 points to 2440. Markets in Japan were closed for a holiday.

European markets traded mixed, after the ECB said it would hold rates at 1%, and revealed that the bank had not discussed further rate cuts. The FTSE rose .2%, while the DAX dropped .2% and the CAC40 slipped .1%. Societe General shares tumbled 4.2% despite a positive earnings report.

US stocks fell, led by the Nasdaq’s sharp 1.2% drop to 3024. The S&P 500 shed .8% to 1392, and the Dow declined 62 points to 13207. Disappointing ISM data pressured stocks, outweighing a positive weekly unemployment report.

Green Mountain Coffee Roasters plunged 48% after warning that growth was beginning to slow, and slashing its outlook. In contrast, Whole Foods rallied 7.6% after beating earnings forecasts and raising its outlook.

Treasuries and Commodities
Bonds tacked on only slight gains, despite the economic concerns. 10-year notes inched up 2/32 to yield 1.92%, and 30-year notes gained 4/32 to yield 3.11%.

Crude oil sank 2.6% to 102.53, and gasoline dropped .9% to 3.0478. Natural gas rallied 3.8% to 2.339, largely erasing yesterday’s sharp fall, after storage supplies fell more than expected.

Gold fell 1.1% to 1636.40, silver sank 1.7% to 30.135, and copper lost 1.4% to 3.7335.

Currencies
The Australian Dollar slumped .7% to 1.0258, as a drop in metals prices hit the commodity currency. The Pound and yen both eased .1% to 1.6178 and 80.21 respectively, while the Euro and Swiss Franc traded fractionally lower.

Economic Outlook
The ISM non-manufacturing index fell to 53.5 from 56, well below forecasts for 55.5. Weekly unemployment claims fell to 365K, a big jump from last week’s 392K.

Friday will feature the non-farm payroll report, with expectations for a 170K job increase. The unemployment rate is expected to remain at 8.2%.

Earnings are due from Alliant Energy, Church & Dwight, Duke Energy, Vornado Realty, and US Cellular.

-Bradley Welcher

Binary Options Daily Analysis – Employment Data for Europe and US Disappoints

Equities
Asian markets advanced on Wednesday, following Tuesday’s upbeat factory data from the US and China. In greater China, the Shanghai Composite surged 1.8% to 2438, after returning from a 2-day holiday, and the Hang Seng rallied 1% to 21309. The Nikkei rose .3% to 9380, the Kospi climbed .9% to 1999, and the ASX 200 inched up .1% 4436, closing at a 9-month high.

European markets traded mostly lower, as unemployment in the Euro zone jumped to 10.9%, its worst level in 15 years. Banks led the declines, dropping 2.9%. The FTSE fell .9%, the DAX dropped .8%, while the CAC40 bucked the trend, rising .4%. Indexes in debt-laden Spain and Italy fell 2.6%.

US stocks opened down following a disappointing employment report from ADP, but largely recovered throughout the day. The Dow slipped 11 points to 13269, the S&P 500 eased .3% to 1402, while the Nasdaq gained .3%.

Chesapeke Energy plunged 14.6% after reporting earnings which fell short of expectations. The stock has dropped more than 25% over the past month.

Treasuries and Commodities
Bonds gained, with 10-year notes up 8/32 to yield 1.92%, and 30-year notes up 22/32 to yield 3.11%.

Commodities dropped across the board. In energy, natural gas tumbled 4.6% to 2.261, crude oil declined .8% to 105.31, and gasoline shed .5% to 3.081.

Copper lost 1.5% to 3.783, silver dropped 1% to 30.635, and gold fell .5% to 1654.

Agricultural futures posted large losses as well. Wheat plunged 4.4%, corn tumbled 2.8%, and sugar fell 1.9%.

Currencies
European currencies fell, as the Euro and Swiss Franc both declined .6%, and the Pound eased .1% to 1.6201. Meanwhile, the Australian Dollar, Canadian Dollar and Yen all traded fractionally lower.

Economic Outlook
The ADP employment report showed a gain of 119K jobs last month, far below the 178K expected by analysts. The report is generally seen as a barometer for the official non-farm payroll report which will be released on Friday. Adding to the negativity , factory orders fell by 1.5%, their biggest drop in 3 years, but the results were in line with estimates.

Thursday’s report will include weekly unemployment claims, the ISM non-manufacturing index, worker productivity & labor costs, and chain-store sales.

Earnings are scheduled for AIG, Apache, Cigna, Con Ed, El Paso, GM, Kraft, LinkedIn, MGM Resorts, and Sara Lee.

-Bradley Welcher

Binary Options Daily Analysis – Dow Closes at Highest Level Since December 2007

Equities
Australia’s central bank, the RBA, cut interest rates by 50 basis points, more than expected, pushing up the ASX 200 by .8%. In contrast, the Nikkei tumbled 1.8% to 9351, as the recent advance in the Yen weighed on exporters. Honda and Toyota both fell more than 3.4%, and Sharp plunged 9.3% after releasing a disappointing outlook. Markets in greater China were closed for holidays. Factory activity in China rose to a 13-month high, according to the April PMI report.

Most European markets were closed for May Day holidays, but in the UK, the FTSE rallied 1.3% on light volume. Lloyd’s spiked 8.3% after releasing upbeat earnings, with profit more than doubling during the first quarter.

The Dow climbed to a 4-year high, ticking up 66 points to 13279, as US stocks gained. The S&P 500 climbed .6% to 1406, and the Nasdaq edged up .1% to 3050.

Herbalife tumbled 15.1%, after famed short-seller David Einhorn questioned why the company had stopped providing information regarding its distributors.

Bank of America gained 2.5% after announcing plans to cut 400 jobs. Sears jumped 15.4% after issuing an outlook which was better than expected.

Treasuries and Commodities
Bonds fell, with 10-year notes down 8/32 to yield 1.94%, and 30-year notes down 22/32 to yield 3.15%.

Natural gas continued to rally feverishly, jumping 3.6% to 2.367. The energy commodity has bounced more than 20% off 10-year lows over the past 2 weeks. Crude oil advanced 1.1% to 106.04, and gasoline climbed .8% to 3.1006.

Gold and silver both declined fractionally, while copper inched up .2% to 3.84.

Currencies
The Australian Dollar slumped .9% to 1.0330, more than erasing the previous session’s gains, while most other currencies traded in narrow ranges. The Euro and Swiss Franc both eased less than .1%, and the Pound slipped .1% to 1.6217. The Yen declined .4% to 80.12, and the Canadian Dollar ticked up .1% to .9859.

Economic Outlook
Manufacturing activity increased to 54.8 from 53.4 according to the ISM’s PMI report. Construction spending rose less than expected, inching up .1% vs. forecasts for a .5% gain. Total auto sales were flat from last month at 14.4M, slightly below expectations.

Wednesday’s reports will include the ADP employment report, factory orders, weekly mortgage applications, weekly oil inventories, and the Challenger job-cut report.

Earnings are due from Clorox, Comcast, CVS, Dreamworks, Green Mountain Coffee Roasters, Mastercard, Visa, and Whole Foods.

-Bradley Welcher

Binary Options Daily News – European Shares Sink as Spain Slips into a Recession

Equities
Asian markets opened the week solidly, led by Hong Kong’s Hang Seng, which rallied 1.7% to 21094, a 6-week high. The ASX 200 climbed .8% to 4397, and the Kospi gained .3% to 1982. Markets in Japan and mainland China were closed for holidays.

GDP data from Spain showed the economy shrunk by .3% in the first quarter, indicating it had slipped into a recession. The news sent the IBEX down 1.9%, and pressured European stocks across the region. The CAC40 fell 1.6%, the FTSE dropped .7%, and the DAX slid .6%.

US stocks snapped a 4-day winning streak, closing moderately lower. The Dow erased 15 points to 13214, the S&P 500 shed .4% to 1398, while the Nasdaq skipped .7% to 3046.

Microsoft announced it would invest $300 million in Barnes & Noble’s digital and college businesses, giving Microsoft a 17.6% stake. Barnes & Noble’s shares soared 52% on the news.

Sunoco surged 20.5% on news it would be bought by Energy Transfer Partners.

Treasuries and Commodities
Bonds gained, with 10-year notes up 7/32 to yield 1.91%, and 30-year notes up 13/32 to yield 3.10%.

Energy traded mixed. Natural gas spiked 4% to 2.273, extending its recent rally. Gasoline fell .8% to 3.1821, and crude oil slipped .3% to 104.57.

Silver sank 1.2% to 30.965, while gold closed flat at 1665, and copper edged up .3% to 3.8325.

Currencies
The Dollar traded mostly higher on Monday. The Euro eased .1% to 1.3232, and both the Pound and Swiss Franc declined .2%. The Australian Dollar sank .5% to 1.0415 ahead of the central bank’s rate decision, and the Canadian Dollar dropped .6%, following disappointing GDP data. The Japanese Yen rallied .6%, breaking through the 80 price barrier to 79.83.

Economic Outlook
Midwest business activity slowed last month according to the Chicago PMI report, which fell to 56.2 from 62.2. Personal income rose .4%, more than expected, while personal spending rose .3%, less than expected.

Tuesday’s reports will include the ISM manufacturing index, construction spending, and auto sales.

Earnings are expected from Archer Daniels Midland, ADP, Broadcom, CBS, Chesapeke Energy, Endo Pharmaceuticals, Kindred Healthcare, Motorola Mobility, Office Depot, Pfizer, and Valero.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Rise Despite GDP Disappointment and Ratings Cuts

Equities
The Bank of Japan announced it would expand its current asset purchase program by another $124 billion, but the news had little lasting impact on the region’s markets. The Nikkei closed down .4% to 9521, surrendering a brief gain following the announcement. The Kospi rose .6%, boosted by Samsung Electronics 2.5% gain, after announcing a record $5.2 billion profit for the first quarter. The Shanghai Composite slipped .4% to 2396, and both the Hang Seng and ASX 200 declined .3%.

S&P cut its debt ratings on peripheral European countries by 2 notches, although the equity markets failed to notice. Spain’s IBEX jumped 1.7%, the CAC40 gained 1.1%, and the DAX rose .9%. Trailing behind, the FTSE posted a respectable .5% gain. Superb earnings by Swedish engineering firm, Sandvik, helped push stocks higher, as the stock rose 12.5%.

US stocks closed higher, despite disappointing GDP data. The Dow added 24 points to 13228, the Nasdaq climbed .6% to 3069, and the S&P 500 gained .2% to 1403. The Nasdaq rallied 2.3% this week, its biggest gain in 3 months.

Procter & Gamble lowered its guidance for the year, citing high commodity costs. The stock fell 3.6% to 64.44.

Expedia shares soared 23.5% to 40.31 after blowing past analyst forecasts, collecting at least 8 analyst upgrades on the way.

Treasuries and Commodities
Bonds closed little changed, with 10-year notes up 1/32 to yield 1.93%, while 30-year notes eased 3/32 toy yield 3.12%. Overseas, UK bonds struggled, as 10-year notes ticked down .26 to yield 2.12%, and 30-year notes fell .63 to yield 3.33%.

Energy gained, led by natural gas, which rallied 2.8% to 2.186. Gasoline gained .7% to 3.2062, and crude oil edged up .4% to 104.93.

Copper climbed 1.4% to 3.82, silver rose .5% to 31.347, and gold edged up .3% to 1664.80.

Currencies
The Dollar fell against all major currencies on Friday. The Yen and Australian Dollar both jumped an impressive .9%, to 80.29 and 1.0467, respectively. Meanwhile, the Swiss Franc, Euro, Canadian Dollar, and Pound moved up .5% in an unusually synchronized effort.

Economic Outlook
US GDP grew at an annualized 2.2% rate in the first quarter, slower than the 2.6% expected. On a brighter note, consumer sentiment climbed to 76.4, exceeding forecasts.

Monday’s reports will include personal income & spending, Chicago PMI, and the core PCE price index. GDP data is due from Canada, with expectations for a dismal .2% growth rate.

Earnings are scheduled for Anadarko Petroleum, Anheuser Busch, FMC, Humana, Loews, and Sohu.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Gain on Strong Housing Data

Equities
Asian markets traded mostly higher on Thursday. The Kospi inched up .1% to 1964, despite a 6.2% drop in LG Electronics, and the ASX 200 gained .3% to 4375. The Hang Seng rallied .8% to 20810, while the Shanghai Composite eased .1%, and the Nikkei closed flat.

European markets closed mixed, as banks fell 2.3% following lackluster earnings from Deutsche Bank. The FTSE and DA advanced .5%, while the CAC40 declined .1%. Automakers extended their gains from the previous session, rising 2.7%, after Volkswagen reported strong earnings, pushing the stock up 7.8%.

US stocks rallied, as the Dow jumped 114 points to 13205, ad the Nasdaq and S&P 500 both climbed .7%.

H&R Block tumbled 10.7% to 14.95 after announcing it would close stores and layoff employees to cut costs.

Treasuries and Commodities
The Treasury auctioned $29 billion in 7-year notes with a high-yield f 1.347% and a bid-to-cover ratio of 2.83. Bonds closed higher, with 10-year notes up 10/32 to yield 1.95%, and 30-year notes up 16/32 to yield 3.12%.

Metals jumped, with silver gaining 2.4% to 31.095, and copper jumping 2.2% to 3.782. Gold advanced 1% to 1657.90.

Crude oil rose .4% to 104.55, and gasoline climbed .8% to 3.18, while natural gas fell 1.8% to 2.131.

Currencies
The Dollar declined against global currencies on Thursday. The Pound edged up .2% to 1.6195, while the Euro and Swiss Franc inched up .1%. The Yen spiked .5% to 80.95, and the Australian Dollar climbed .3% to 1.0396.

Economic Outlook
Weekly unemployment claims dropped by 1K to 388K, significantly worse than expectations for a drop to 374K. However, pending home sales surged by 4.1%, blowing past analyst forecasts for a 1.2% gain.

Friday’s reports will include GDP and consumer sentiment.

Earnings are due from Chevron, Coventry Health Care, KKR, Merck, Procter & Gamble, and Weyerhaeuser.

-Bradley Welcher

Binary Options Daily Analysis – Apple’s Blowout Earnings Lift US Stocks

Equities
Apple’s sterling earnings reports pushed up Asian markets at the open, but the indexes closed mixed. The Nikkei climbed 1% to 9561, and the Shanghai Composite gained .8% to 2507. On the losing side, the Hang Seng slipped .2% and the Kospi eased .1%.

Mainland European markets rallied on Wednesday, with the CAC40 up 2%, and the DAX up 1.8%, while the UK’s FTSE closed flat. Automakers rallied after Peugeot Citroen and Valeo reported solid profits, climbing 4.6%, and 8.7% respectively.

US stocks advanced, particularly tech shares, following Apple’s earnings report. The Nasdaq surged 2.3% to 3030, the S&PP 500 jumped 1.4%, and the Dow added 89 points to 13091.

Apple shares popped 8.9% to 610 after blowing past analyst estimates. 14 brokerages upgraded the stock.

Caterpillar shares slumped 4.6% despite issuing an upbeat outlook, due to a shortfall in revenue.

Treasuries and Commodities
Bonds closed slightly lower, with 10-year notes down 4/32 to yield 1.99%, and 30-year notes down 13/32 to yield 3.15%.

Natural gas surged 5.2% to 2.078, while crude oil rose .5% to 104.04. Gasoline futures trailed behind, slipping .2% to 3.1526.

Copper gained .9% to 3.7055, while silver fell .5% to 30.58, and gold ended flat at 1644.

Currencies
The Dollar slipped on Wednesday as Fed chairman, Bernanke, reiterated his commitment to additional easing, if needed. The Pound, Swiss Franc, and Euro each rose .2%. The Australian Dollar gained .3% to 1.0353, and the Canadian Dollar rallied .4% to .9836, while the Yen closed little changed at 81.34.

Economic Outlook
Durable goods orders fell 4.2% , far more than forecast, while the less volatile core durable goods orders unexpectedly dropped 1.1%. The Fed raised its projection for economic growth to 2.4%-2.9% from January’s 2.2%-2.7% forecast.

Thursday’s reports will include weekly unemployment claims, the Chicago Fed’s national activity index, and pending home sales.

Earnings are due from Amazon, Bristol-Myers, Chrysler, ExxonMobil, Pepsi, Starbucks, and Zygna.

-Bradley Welcher

Binary Options Daily Analysis – US Stocks Trade Mixed Ahead of Apple’s Earnings Report

Equities
Asian markets traded mixed on Tuesday. The Nikkei dropped .8% to 9468, and the Kospi declined .5% to 19163, a 3 month low. Inflation data from Australia came in far below expectations, pushing down the Australian Dollar and lifting stocks. The ASX 200 rose .2% to 4360. China’s Shanghai Composite closed flat, while the Hang Seng edged up .3%, as the Bank of Beijing rallied nearly 4 on solid earnings.

European markets rallied, led by banks, which bounced 2% after Monday’s 3% slide. The CAC40 jumped 2.3%, the DAX climbed 1%, and the FTSE rose .8%.

US indexes closed mixed, as the Dow rose 74 points to 13002, the S&P 500 rose .4%, and the Nasdaq slipped .3%.

Apple shares dropped 2% to 560.28, ahead of its earnings report. After the close, the stock soared 7.8% to 603.81, following another set of impressive profit and revenue data.

Radio Shack tumbled 10.6% after reporting a loss, dropping to its lowest level in more than 30-years.

Treasuries and Commodities
Bonds fell, with 10-year notes down 9/32 to yield 1.97%, and 30-year notes down 23/32 to yield 3.12%.

Crude oil rose .4% to 103.49, while natural gas dropped 1.4% to 1.98, and gasoline slid .9% to 3.159.

Metals gained, led by copper’s 1.3% advance to 3.6725. Gold rose .6% to 1641.60, and silver closed up .9% to 30.80.

Currencies
The currency markets traded in relatively narrow ranges on Tuesday, and the Dollar declined modestly. The Pound edged up .1% to 1.6138, the Euro gained .2% to 1.3189, and the Swiss Franc rose .3% to 1.0977. The Australian Dollar slipped .2% to 1.0299, largely recovering from an earlier drop down to 1.0249, while the Japanese Yen declined .2% to 81.31.

Economic Outlook
New home sales fell to 328K from 353K, dropping less than expected. Home price data was conflicted, as the FHFA home price index showed an increase of .3%, better than forecast, while the Case-Shiller home price index showed an annual drop of 3.5% in prices.

The Fed will issue its rate statement and hold a press conference on Wednesday. Also due are reports on durable goods and crude oil inventories.

Earnings are due from Boeing, Caterpillar, Eli Lilly, Delta, Credit Suisse, Citrix, Corning, General Dynamics, Sprint, Akamai, and Motorola Solutions.

-Bradley Welcher

Binary Options Daily Analysis – European Political Uncertainty Sends Stocks Sharply Lower

Equities

Asian markets traded lower on Monday. The Nikkei slipped .2% to 9542, the Kospi eased .1%, and the ASX 200 declined .3%. The Shangha Composite dropped .8%, and the Hang Seng sank 1.8%, weighed down by China Mobile’s 3% drop, after the company reported disappointing subscriber data. PMI data from China showed factory output was still declining, although not as much as expected.

European markets tumbled, after the Dutch cabinet resigned as they failed to reach an agreement over austerity measures. The DAX plunged 3.4%, the CAC40 tanked 2.8%, and the FTSE slumped 1.9%. In France, socialist candidate, Francois Hollande won the first round of voting in the French presidential election, a significant setback to incumbent Nicolas Sarkozy. The second round of voting will take place in 2 weeks.

US stocks closed lower, but fared better than their European peers. The Nasdaq dropped 1% to 2970, the S&P 500 fell .8% to 1367, and the Dow skidded 102 points to 12927.

Netflix dropped 4% ahead of its earnings announcement, and plunged an additional 16.7% in after hours trading after warning of a slowdown in growth.

Wal-Mart shares tumbled 4.7% after its Mexican affiliate was accused of bribery.

Treasuries and Commodities
The wave of political uncertainty from Europe helped lift treasuries. 10-year notes rose 8/32 to yield 1.93%, and 30-year notes gained 23/32 to yield 3.09%.

Natural gas crossed back above the $2 mark, as price jumped 4.8% to 2.02. Gasoline gained 1.4% to 3.187, while crude oil declined .8% to 103.09.

Metals traded lower, led by silver’s 2.5% drop to 30.865. Copper sank 1.6% to 3.64, and gold eased .2% to 1639.80.

Currencies
The Dollar traded mostly higher in Monday’s currency trading. The Swiss Franc and Australian Dollar both declined .6%, and the Euro fell .5% to 1.3152. The Pound traded flat, while the Yen rose .4% to 81.18.

Economic Outlook
Tuesday’s reports will include the Case-Shiller home price index, the FHFA hompe price index, new home sales, and consumer confidence.

Earnings are expected from 3M, Aflac, AT&T, Amgen, Apple, Baidu, Baker Hughes, Coach, Juniper Networks, Radio Shack, Hershey’s, United Technologies, and US Steel.

-Bradley Welcher

Binary Options Daily Analysis – European Markets Gain on Upbeat Data

Equities
Asian markets closed on a mixed note, following Thursday’s data from the US which fell short of expectations. The Nikkei slipped .3% to 9561, and the Kospi tumbled 1.3%. On the upside, the Shanghai Composite climbed 1.2% amid hopes for additional government easing, while the ASX 200 and Hang Seng inched up .1%.

European markets gained, led by the DAX’s 1.2% advance, fueled by upbeat German business sentiment data. The FTSE and CAC40 both rose .5%.

US stocks closed mixed, after gaining in the morning. The Dow closed up 65 points to 13029, th S&P 500 edged up 1 point, while the Nasdaq slipped .2%.

Microsoft shares jumped 4.6% after beating analyst forecasts and garnering several analyst upgrades.

Sandisk plunged 11.3% after warning that excess supply will hurt memory prices for the rest of the year.

Treasuries and Commodities
US bonds closed little changed, with 10-year notes up 1/32 to yield 1.96%, which 30-year notes eased 2/32 to yield 3.12%. Spanish 10-year notes once again spiked above the critical 6% mark, signaling the country may struggle to fund its needs.

Crude oil and natural gas both advanced 1.1% to 103.88 and 1.927 respectively, while gasoline futures declined .4% to 3.1427.

Copper spiked 1.9% to 3.698, while precious metals closed mixed. Gold ticked up .1% to 1642.80, while silver fell .4% to 31.651.

Currencies
The US Dollar fell against global currencies on Friday. European currencies led the advance, as the Swiss Franc rallied .7% to 1.1001, the Euro climbed .6% to 1.3219, and the Pound rose .4% to 1.6132. The Australian Dollar advanced .5% to 1.0380, and the Canadian Dollar edged up .3% to .9924. The Yen inched up .1% to 81.53.

Economic Outlook
No major economic reports are scheduled for Monday. Earnings are due from Checkpoint, ConocoPhillips, DR Horton, Netflix, SunTrust Banks, Texas Instruments, and Xerox.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Drop as US Data Disappoints

Equities
On Thursday, Asian markets traded mixed following the strong gains in the prior session. The Nikkei declined .8% to 9588, the Kospi slipped .2% to 2000, and the Shanghai Composite eased .1% to 2379. The Hang Seng jumped 1%, lifted by China Life’s 3.9% advance, and the ASX 200 edged up .3% to 4363, its highest close in 8 months.

European markets closed lower, pressured by disappointing US data. The CAC40 tumbled 2.1%, the DAX fell .9%, and the FTSE closed down fractionally. Rumors of a potential credit rating cut for France hit the country’s stocks particularly hard.

US stocks dropped as well, with the Dow shedding 69 points to 12964, dropping below the 13000 mark. The Nasdaq fell .8% to 3008, and the S&P 500 declined .6% to 1377.

Gilead Sciences surged 12% after reporting positive clinical trials for a hepatitis C drug.

Apple shares slumped 3.4% amid fears the company will be unable to meet its sales targets for the iPhone, largely due to supply issues.

Treasuries and Commodities
Bonds traded modestly higher, as both 10 and 30-year notes gained 4/32 to yield 1.96% and 3.12% respectively.

Natural gas tumbled 2.4% to 1.905, as a large jump in inventories sent price tumbling. Gasoline fell 1.4% to 3.158, and crude slipped .2% to 102.50.

Precious metals gained, with silver gaining .7%, and gold inching up .1% to 1651.60. Copper declined .1% to 3.626.

Currencies
The US Dollar traded mixed against global currencies as weekly jobless claims disappointed. The Euro and Swiss Franc edged up .1%, and the Pound rose .2% to 1.6054. The Canadian Dollar and Japanese Yen both fell .4%.

Economic Outlook
Weekly jobless claims clocked in at 386K, 18K worse than forecast. Existing home sales unexpectedly declined, dropping to 4.48M from last month’s 4.6M annualized rate. Continuing the trend of disappointment, the Philly Fed manufacturing index dropped to 8.5 from 12.5.

No major reports are due on Friday. Earnings are expected from GE, Honeywell, Kimberly-Clark, Manpower, McDonald’s and Schlumberger.

-Bradley Welcher

Binary Options Daily Analysis – Stocks Drop as Spanish Debt Fears Return

Equities
Asian markets rallied on Wednesday, tracking Tuesday’s gains in Western markets. The Nikkei bounced 2.1% to 9667, the Kospi gained 1% to 2004, and the ASX 200 rallied 1.4%. China’s Shanghai Composite surged 2% to 2381, its largest gain in 2 months, and the Hang Seng added 1.1% to 20781.

Despite the previous day’s cheer, European markets skidded. The CAC40 slumped 1.6%, the DAX dropped 1%, and the FTSE declined .4%. Data showed that Spanish banks are holding more bad loans than expected, confirming fears over the health of the country’s banking system.

US stocks traded lower as well. The Dow dropped 83 points to 13033, while the Nasdaq and S&P 500 shed .4%. IBM shares fell 3.5% to 200.13 after revenue fell short of forecasts, although earnings beat estimates.

Intel shares dropped 1.8% after warning that gross margins would drop due to production expenses.

Treasuries and Commodities
US bonds inched up, with 10-year notes up 5/32 to yield 1.98%, and 30-year notes up 6/32 to yield 3.13%.

Oil sank 1.5% to 102.87, pressured by the weekly inventory reports which showed inventories unexpectedly rose by 3.9M barrels. Gasoline dropped .9% to 3.2065, and natural gas eased .2% to 1.948.

Gold shed 10.30 to 1640.80, copper lost .5% to 3.6285, and silver slipped .4% to 31.555.

Agricultural futures posted larger losses, as sugar fell 2.5%, corn sank 2.4%, and soybeans dropped 1.3%.

Currencies
The Pound climbed .6% to 1.6022, while the Dollar gained against most other currencies. The Australian Dollar declined .4% to 1.0351, and the Yen dropped .5% to 81.25. The Euro, Swiss Franc, and Canadian Dollar all eased .1%.

Economic Outlook
Thursday’s reports will include weekly unemployment claims, existing home sales, the Philly Fed survey, and leading indicators.

Earnings are scheduled for AMD, Bank of America, Capital One, DuPont, Microsoft, Morgan Stanley, Nokia, Sandisk, and Verizon.

-Bradley Welcher

Binary Options Daily Analysis – European and US Stocks Soar

Equities
Asian markets continued to slide on Tuesday, as concerns over Spain’s debt burden escalated. The Nikkei eased .1% to 9465, the Kospi fell .4% and the ASX 200 declined .3%. China’s Shanghai Composite slumped .9%, and the Hang Seng slipped .2% as Chinese financial shares struggled.

European markets soared as a dose of good economic data and a successful Spanish debt auction triggered a buying spree. The DAX and CAC40 surged 2.7% and the DTSE climbed 1.8%. European banks led the gains, as the sector jumped 4.1%. Germany’s ZEW economic sentiment index climbed to its highest level since June 2010, blowing past analyst forecasts.

US stocks advanced as well, but the gains were slightly less impressive. The Nasdaq spiked 1.8% to 3043, the S&P 500 rallied 1.6% to 1391, and the Dow rocketed up 194 points to 13116.

Apple shares jumped 5.1%, snapping a 5-day losing streak. Citigroup climbed 3.2% after earning an upgrade from Meredith Whitney.

Coca-Cola and Johnson & Johnson both gained after beating analyst profit forecasts. Goldman Sachs slipped .8% despite earnings which exceeded forecasts.

Treasuries and Commodities
Bond prices eased, with 10-year notes down 4/32 to yield 1.99%, and 30-year notes down 7/32 to yield 3.14%. German bonds dropped as confidence in the Euro zone improved, with 10-year notes down .31 and 30-year noes down 1.005.

Energy traded mixed, as crude oil rose 1.3% to 104.27, while natural gas tumbled 3% to 1.955, and gasoline skidded 1% to 3.2349.

Metals gained, led by silver which rose 1.1% to 31.715. Copper advanced .5% to 3.646, and gold edged up .1% to 1651.60.

Currencies
The Dollar traded mostly lower on Tuesday as money flowed back into risk. The Canadian Dollar jumped .9% to .9903, the Pound rose .2% to 1.5934, and the Australian Dollar gained .4% to 1.0394. The Euro and Swiss Franc closed flat, while the Yen declined .6% to 80.90.

Economic Outlook
Building permits rose to .75M, up from .72M last month hitting their highest level since September 2008, but housing starts unexpectedly dropped to .65M from last month’s .69M.

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

Earnings are due from Abbott Laboratories, American Express, Bank of NY Mellon, BlackRock, Ebay, Halliburton, Kinder Morgan, Qualcomm, St. Jude Medical, Vmware, and Yum Brands.

-Bradley Welcher

Binary Options Daily Analysis – Spanish Debt Fears Grow, as Yields Cross 6%

Equities
Asian markets skidded on Monday, following Friday’s slide in the West. The Nikkei tanked 1.7% to 9471, the Kospi dropped .8%, and the ASX 200 declined .5%. In greater China, the Hang Seng fell .4% and the Shanghai Composite eased .1%, ending a 4-day winning streak.

European markets rebounded from early losses thanks to strong US sales data. The DAX advanced .6%, CAC40 gained .5%, and the FTSE rose .3%. Yields on 10-year Spanish debt crossed above 6%, hitting their highest level this year, and the cost to insure Spanish debt spiked to a record high.

US stocks ended mixed, as the Dow climbed 72 points to 12921, while the Nasdaq slumped .8% to 2988, and the S&P 500 eased less than 1 point to 1370.

Apple shares fell 4.2% to 580.13, marking its 5th straight loss.

Toy maker, Mattel Corp., tumbled 9.1% after earnings fell short of forecasts.

Treasuries and Commodities
US bonds closed flat, while German bonds rose, with 10-year notes up .17 to yield 1.72% and 30-year notes up .46 to yield 2.37%.

Natural gas moved back above the $2 mark, climbing 1.7% to 2.014, while gasoline sank 2.5% to 3.2641. Crude oil edged up .2% to 103.04.

Copper inched up .1% to 3.631 and silver edged up .3% to 31.49. Gold slipped .4% to 1653.20.

Agricultural futures sank, as cotton tumbled 4.3%, coffee slumped 2.5%, and wheat dropped 1.2%.

Currencies
The Euro briefly fell below the 1.30 mark but recovered to close up .3% to 1.3116. The Pound rose .2% to 1.5887, the Swiss Franc gained .3% to 1.0877, and the Yen climbed .6% to 80.46. The Australian Dollar dropped .4% to 1.0333, and the Canadian Dollar settled down fractionally at 1.0001.

Economic Outlook
Monday’s economic data was mixed. Retail sales blew past forecasts, rising .8% vs. forecasts for a .4% gain. On the negative side, the Empire State manufacturing index tumbled to 6.6 from 20.1, way below estimates. The NAHB housing market index unexpectedly fell to 25 from 28, the first drop in 7 months.

Tuesday’s economic data will include building permits, housing starts, and industrial production. The Bank of Canada will issue its rate decision, but is expected to keep rates at 1%.

Earnings are due from Coca-Cola, Comerica, Goldman Sachs, Intel, IBM, Johnson & Johnson, TD Ameritrade, and US Bankcorp.

-Bradley Welcher

Binary Options Daily Analysis – Western Markets Tumble as Data Disappoints

Equities
Asian markets gained on Friday, as investors disregarded a North Korean rocket launch and disappointing growth data from China. GDP data from the first quarter showed the Chinese economy grew at 8.1%, down from 8.9% in the previous quarter. The Shanghai Composite rose .4%, amid hopes that signs of a slowdown will prompt more easing from the government. The Hang Seng jumped 1.8% to 20701, the ASX 200 climbed 1%, and the Nikkei advanced 1.2% to 9638. Korea’s Kospi snapped a 3-day losing streak, bouncing 1.1%.

Meanwhile, European markets tanked amid growing debt concerns, and selling accelerated in the afternoon after US consumer sentiment data disappointed. The CAC40 sank 2.5%, the DAX slumped 2.4%, while the FTSE fell 1%. Markets in Spain and Italy plunged more than 3% after data showed Spanish banks were borrowing extensively from the ECB.

US markets closed at the low of the session, dropping more than 1%. The Dow shed 137 points to 12850, the Nasdaq declined 1.5% to 3011, and the S&P 500 fell 1.3% to 1370.

Banking shares were hit hard, led by Bank of America’s 5.3% drop. JPMorgan dropped 3.6% despite earnings which beat estimates.

Google announced a 2:1 stock split and beat earnings estimates, but nonetheless, the shares fell 4.1%.

Treasuries and Commodities
A flight to safety pushed up bonds, with 10-year notes up 20/32 to yield 1.98%, and 30-year notes up 1 20/32 to yield 3.13%.

Metals posted steep losses, led by silver’s 3.5% drop to 31.39. Copper slumped 2.5% to 3.627, and gold fell 1.2% to 1660.20.

Crude oil slid .8% to 102.83, gasoline slipped .3% to 3.3461, and natural gas eased .1% to 1.981.

Currencies
The US Dollar benefited from the switch to “risk off” mode, particularly against its European counterparts. The Euro fell .8% to 1.3078, the Swiss Franc skidded .9% to 1.0877, and the Pound dropped .6% to 1.5856. The Canadian Dollar declined .5% to .9996, and the Australian Dollar lost .6% to 1.0378. The Yen eased fractionally to 80.93.

Economic Outlook
Consumer sentiment data from the University of Michigan disappointed, unexpectedly sliding to 75.7 from last month’s 76.2 reading. CPI data showed prices rose .3%, above forecasts, but the less volatile core CPI was in line with estimates, rising .2%.

Monday’s busy economic calendar will include retail sales, the Empire State Manufacturing index, the NAHB housing market index, and business inventories.

Earnings are due from Charles Schwab, Citigroup, Mattel, and United Continental.

-Bradley Welcher

Binary Options Daily Analysis – US Weekly Jobless Claims Continue to Drop

Equities
China’s Shanghai Composite returned from a 3-day holiday to rally 1.7%, while most Asian markets traded lower. The Hang Seng fell 1% , the Nikkei slid .5%, and the ASX 200 declined .3%. Sharp gains in car makers lifted the Kospi .5%, as Hyundai Motors rallied more than 4%.

European markets recovered from early losses after the weekly US jobless claims report showed modest progress. The FTSE gained .4%, the CAC40 rose .2%, while the DAX lagged behind, easing .1%.

US stocks closed mixed after a quiet session. The Dow slipped 15 points to 13060, the S&P 500 eased 1 point to 1398, while the Nasdaq gained .4% to 3081. The VIX rose 1.6% to 16.70, up 7.8% for the week.

On the earnings front, beverage maker, Constellation Brands tumbled 12.5% after lowering its outlook, while Bed Bath & Beyond jumped 8.5% after beating earnings forecasts.

Treasuries and Commodities
Bonds continued their advance, with 10-year notes up 12/32 to yield 2.18%, and 30-year notes p 18/32 to yield 3.33%.

Crude oil recovered from Wednesday’s slide, climbing 1.7% to 103.17, while natural gas broke below the 2.10 mark to 2.097, down 2.1%.

Silver advanced 2.1% to 31.69, and gold bounced 1.1% to 1632.40. Copper settled flat at 3.79.

Currencies
European currencies retreated, as he Euro skidded .6% to 1.3067, while the Pound and Swiss Franc declined .4%. The Australian Dollar and Canadian Dollar both rose .3%, and the Yen inched up .1% to 82.36.

Economic Outlook
Weekly unemployment claims declined by 6000 to 357K, slightly weaker than the 355K forecast by analysts. Overseas, Canada’s payroll report showed the economy staged a sharp upswing last month, adding 82.3K jobs. The figure blew past forecasts for a modest 11.3K.

On Friday, the government will release its monthly payroll report, which is expected to show a gain of 211K. The unemployment rate is expected to remain flat at 8.3%. Also due are consumer credit and average hourly earnings.

The stock and bond markets will be closed fin the US and Europe for Good Friday. No major earnings reports are due.

-Bradley Welcher

Binary Options Daily Analysis – Global EquitiesTumble on Spanish Debt Fears

Equities
Asian markets tumbled on Wednesday, as hopes for another round of easing by the Fed faded. The Nikkei tanked 2.3% to 9820, its steepest drop in 5 months. The Kospi slumped 1.% to 2019, while the ASX 200 managed to ease just .1%, as a slide in the Australian Dollar helped exporters. In China, the Shanghai Composite and Hang Seng were closed for a holiday.

Selling pressure intensified in Europe following a weak Spanish bond auction. The DAX plunged 2.8%, the CAC40 tumbled 2.7%, and the FTSE skidded 2.3. Spain sold just 2.6 billion euros in short-term debt, an amount which was at the bottom of its target range, and yields on Spanish 10-year notes climbed to 5.61%.

US stocks fared modestly better, but still closed sharply lower. The Dow dropped 125 points to 13075, the S&P 500 fell 1% to 1399, and the Nasdaq shed 1.5% to 3068.

AIG shares jumped 5.3% after garnering an upgrade from Bernstein.

Sandisk plunged 11% after issuing a profiit warning due to weak demand and abundant supply in the market.

Treasuries and Commodities
A flight to safety lifted bonds, with 10-year notes up 21/32 to yield 2.22%, and 30-year notes up 1 16/32 to yield 3.36%.

Commodities sold off, particularly metals. Silver tumbled 6% to 31.26, copper dropped 3.2%, and gold tanked 2.1% to 1621. Crude oil fell 1.9% to 102.07, natural gas sank 2.5% to 2.133, and gasoline shed 1.6% to 3.3424. Crude oil inventories rose to 9M barrels, blowing past estimates of 2.1M barrels.

Currencies
The US Dollar benefited from the shift away from risk, climbing .7% against the Euro, Swiss Franc, and Australian Dollar. The Yen climbed .5% to 82.42 as traders unwound carry trade positions. The Canadian Dollar declined .6% to .9966, while the Pound eased .2% to 1.5888.

Economic Outlook
The ADP payroll report indicated the economy added 209K jobs last month, slightly more than forecast, but a smaller gain than last month’s 230K jump. On Friday, the government will release the official non-farm payroll report, which is expected to show a gain of 211K jobs.  ISM non-manufacturing PMI slid to 56.0 from 57.2, slightly below forecasts.

Thursday’s sole report will be weekly unemployment claims.

US and European markets will be closed on Friday for Good Friday.

Earnings are due from Carmax, Constellation Brands, and Pier 1 Imports.

-Bradley Welcher

Binary Options Daily Analysis – FOMC Minutes Suggest No More Easing

Equities
Asian markets traded mostly higher, following Monday’s advance in Western shares. The Hang Seng climbed 1.3% to 20791, and the Kospi gained 1% to 2049. The ASX 200 edged up .2%, as the country’s central bank held rates steady. Lagging behind, the Nikkei slipped .6% to 10050, as the yen spiked to a 3-week high against the dollar, hurting exporters.

European stocks slumped, as concerns over Spanish debt weighed on investors. The CAC40 tanked 1.4%, the DAX sank .8%, and the FTSE fell .4%.

US stocks mostly recovered from their losses, but still ended down. The Dow dropped 65 points to 13200, the S&P 500 fell .4% to 1413, and the Nasdaq declined .2% to 3114. Following the release of the minutes from the FOMC’s last meeting, the indexes briefly tumbled 1%. The minutes indicated it is unlikely the Fed will authorize another round of easing, thanks to an improving economy.

GM shares tumbled 4.6% after monthly sales fell short of estimates, despite posting an impressive 11.8% increase.

RIMM shares plunged 9.5% after revealing a plan to offer services to customers of other mobile networks, another indication the company’s Blackberry offering has lost relevance.

Treasuries and Commodities
Bonds slumped as hopes for another round of quantitative easing were dashed. 10-year notes fell 28/32 to yield 2.28%, and 30-year notes sank 1 18/32 to yield 3.41%.

Metals sank as well. Gold tumbled 2.1% to 1644, silver dropped 1.6% to 32.58, and copper fell .9% to 3.8845.

Energy traded mixed, as crude oil dropped.2% to 103.99, while natural gas climbed 1.1% to 2.176 and gasoline gained .4% to 3.3943.

Currencies
The Dollar rallied against global currencies. The Yen fell 1% to 82.90, erasing Monday’s gains, and the Australian Dollar fell .9% to 1.0318. The Pound, Euro, and Swiss Franc all dropped .8%. The Canadian Dollar largely escaped the downtrend, easing less than .1% to .9914.

Economic Outlook
US factory orders rose by 1.3%, slightly below forecasts for a 1.5% gain. Monthly auto sales also fell short of forecasts, as the annual rate declined to 14.4M from last month’s 15.1M reading.

Wednesday’s reports will include the ADP employment report, the ISM non-manufacturing index, the Challenger job-cut report, weekly mortgage applications, and weekly oil inventories.

Earnings are due from Acuity Brands, Bed Bath & Beyond, and Monsanto.

-Bradley Welcher

Binary Options Daily Analysis – Solid PMI Data from China and US Energizes Stocks

Equities
PMI data from China exceeded analyst forecasts, rising to an 11-month high of 53.1, lifting some Asian markets. The Nikkei rose .3% to 10110, led by car makers, and the Kospi climbed .8% to 2029. Moody’s raised its credit rating on South Korea’s sovereign debt, boosting financial stocks. The Hang Seng slipped .2% to 20522, and the ASX 200 eased .1%, while the Shanghai Composite was closed for a holiday which will extend through Wednesday.

European markets traded sharply higher, as the upbeat news from China, and solid US data lifted investor optimism. The FTSE rallied 1.9%, the DAX climbed 1.6%, and the CAC40 gained 1.1%. The gains came despite a disappointing manufacturing report from the euro zone, indicating the region is in the midst of another recession.

US stocks gained, with the Dow ticking up 52 points to 13264, the Nasdaq jumping .9% to 3120, and the S&P 500 climbing .7% to 1419.

Groupon shares tumbled 16.9% after cutting its revenue data for the 4th quarter, due to significant customer returns.

Treasuries and Commodities
Bond prices rose modestly, with 10-year notes up 6/32 to yield 2.19%, and 30-year notes up 3/32 to yield 3.33%. In the UK, bonds slipped, with 10-year notes dropping .20 and 30-year notes down .44.

Commodity prices spiked in response to the Chinese data. Crude oil gained 2.1% to 105.19, gasoline climbed 2.4% to 3.3859, and natural gas advanced 1.2% to 2.152.

Copper, which is heavily tied to industrial demand, jumped 2.4% to 3.918. Gold edged up .4% to 1678.50, and silver rallied 1.6% to 32.99.

Currencies
The Yen climbed 1% to 82.03 in a steady day-long rally, and the commodity currencies gained, with both the Australian Dollar and the Canadian Dollar up .8%. The Euro eased .1% to 1.3326, the Swiss Franc declined .2% to 1.1067, while the Pound edged up .1% to 1.6032.

Economic Outlook
Monday’s economic data was mixed. ISM manufacturing PMI rose to 53.4 from last month’s 52.4 reading, slightly above forecasts. However, construction spending unexpectedly fell 1.1%, extending last month’s decline.

Tuesday’s economic data will include auto sales, factory orders, and minutes from the Fed’s last meeting.

Earnings are expected from Comverse Technology and International Speedway.

-Bradley Welcher

Binary Options Daily Analysis – US Stocks Complete Best Quarter Since the 90′s

Equities
Asian markets closed mixed on Friday, while ending the quarter with strong gains. The Nikkei eased 31 points to 10084, up 19.3 for the first quarter, and the Kospi settled flat, cementing a gain of 10% for the first quarter. The Hang Seng slipped .3% to 20556, climbing 11.8% in the first quarter, and the Shanghai Composite rose .5%, inching up a mere 2.9% in the first 3 months of the year. Finally, the ASX 200 edged down .1%, up 7% for the quarter.

In Europe, stocks rallied as finance ministers agreed to expand the region’s rescue fund., as concerns over Spain’s debt troubled escalated. The CAC40 advanced 1.3%, the DAX climbed 1%, while the FTSE rose a more modest .5%. Gains in Europe were more muted than elsewhere, as the FTSE rose just 3.5% for the quarter.

US stocks closed mixed. The Dow rose .5% to 13212, the S&P 500 gained .4% to 1408, while the Nasdaq eased .1% to 3092. For the quarter the Dow gained 8%, the S&P climbed 12%, and the Nasdaq surged 18.7%.  All three indexes had their best showing since the 1990′s.

Research in Motion shares jumped 7.1% even though the company posted a loss, after suggesting the company will launch an internal review which may involve a sale of the company.

Treasuries and Commodities
Bonds fell, with 10-year notes down 14/32 to yield 2.21%, and 30-year notes down 1 5/32 to yield 3.34%.

Natural gas fell 1.1% to 2.126, and gasoline shed 1% to 3.3081, while crude oil inched up .2% to 103.02.

Metals posted solid gains, led once again by silver which advanced 1.5% to 32.484. Gold climbed 1% to 1671.90 and copper gained .8% to 3.825.

Agricultural futures spiked after a USDA agricultural report indicated supply would be lower than forecast. Wheat skyrocketed 7.9%, corn surged 6.6%, and soybeans climbed 3.5%.

Currencies
European currencies advanced, encouraged by the expansion of the rescue fund to 700 billion Euros. The Euro rose .3% to 1.3340, the Pound gained .4 to 1.6012, and the Swiss Franc climbed .5% to 1.1086. The Yen slid .5% to 82.86, the Australian Dollar declined .3 to 1.0342, and the Canadian Dollar eased .2 to .9987.

Economic Outlook
Personal income rose .2%, less than forecast, while personal income jumped .8%, exceeding forecasts. Chicago PMI declined slightly to 62.2 from 64, while consumer sentiment jumped to 76.2, its highest level in more than a year.

Monday’s reports will include the ISM manufacturing index and construction spending.

Earnings are due from Pep Boys and Talbots.

-Bradley Welcher

Daily Analysis Binary Options – Asian and European Stocks Skid, Energy Sinks

Equities
Asian markets fell on Thursday as mounting fears of a global slowdown weight on investors’ nerves. The Nikkei slid .7% to 10115, the Kospi slumped .9%, and the ASX 200 eased .1%. The Shanghai Composite tumbled for a second day, skidding 1.4% to 2252, and the Hang Seng sank 1.3% to 20609.

Selling pressure intensified in Europe, as the DAX tanked 1.8% to 6875, the CAC40 fell 1.4%, and the FTSE dropped 1.2%. Financial shares fell nearly 3%, and Italy’s MIB index plunged 3.3%.

In contrast, US stocks continued to show their resilience, as the major indexes bounced back from a 1% slide to close mixed. The Dow rose 20 points to 13146, 113 points off its low for the day. The Nasdaq declined .3%, and the S&P 500 eased .2% to 1403.

Sprint jumped 5.3% after Deutsche Bank raised its outlook for the company.

Health care stocks rallied as the Supreme Court listens to hearings concerning the legality of Obamacare. Aetna surged 6.5%, and Coventry Health sprinted 5.9% higher.

On the earnings front, Best Buy tumbled 7%and Mosaic skidded 5.1% after both companies reported a drop in earnings.

Treasuries and Commodities
Bond prices rose, with 10-year notes up 11/32 to yield 2.16%, and 30-year notes up 22/32 to yield 3.27%.

Natural gas plunged 4.9% to 2.17, its lowest level in more than a decade, while crude oil dropped 2% to 103.29. Gasoline futures escaped the slide, edging up .3% to 3.405.

Silver led metals higher, climbing 1.4% to 32.375. Copper rose .5% to 3.8105, and gold inched up .1% to 1660.30.

Agricultural futures extended their recent losses. Wheat tanked 2.9%, coffee tumbled 3.1%, and corn dropped 2.6%.

Currencies
The currency markets traded mixed with no clear direction. The Yen advanced .5% to 82.44, the Pound rose .4% to 1.5952, and the Canadian Dollar edged up .2% to .9965. The Euro, Swiss Franc, and Australian Dollar all slipped .1%.

Economic Outlook
Weekly unemployment claims fell to 359K, a 4-week low, but fell short of analyst forecasts for 351K. GDP for the 4th quarter rose at 3%, as expected.

Friday’s reports will include personal income & spending, Chicago PMI, and consumer sentiment data from the University of Michigan.

Earnings are due from Motorola Solutions.

-Bradley Welcher

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