Internaltional And Domestic Market Clips

Europe: Corporations Brace for tighter credit
Unlike US corporations, the majority of the companies in Europe heavily depend on banks for financing. Most of Europe’s banks passed the stress test, but have a steep hill to climb with respect to raising several billions in capital to fund new lending. It looks as though European banks have won the battle, but the war rages on.
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Wall St. Journal reported that the financial-overhaul law may force public firms to toughen up on “clawback” rules, and make executives repay improperly awarded incentive compensation.
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Maket was inspired today, with a little help from news about BP’s CEO stepping down, and Housings sales, which spiked 24% in June, following slump in May
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Cohn-Reilly Report / News Flash

Major Dow Components Boost Market

AT&T, UPS and Caterpillar beat analyst estimates and reported strong revenues to propel the market over 200 points higher yesterday. Today, although McDonalds, Honeywell and Ford did equally well, the market is struggling to remain in the black in early trading. Let's see if the bulls can continue the rally by the end of the day

Cohn-Reilly Report / News Flash

Historic Reform Bill Passes

Congress managed to pass a sweeping overhaul of Financial Regulations Thursday, thereby securing for a 3rd major (hard-fought legislative victory for President Obama, amid his lowest approval rating since taking office.

The president is expected to sign the bill sometime next week. Obama is quoted as saying "I'm about to sign Wall Street reform into law, to protect consumers and lay the foundation for a stronger and safer financial system, one that is innovative, creative, competitive and far less prone to panic and collapse"

K. Reilly
Cohn-Reilly Report / News Flash Check out the new Music and Art Forum on BlogSpot! "Its a refreshing departure from economics. it's like life's little desert snack."doARTorDIE

July Mini Rally, with Low Trading Volume

On the heels of positive earnings reports from Alcoa and CSX, kicking off the new earnings season, the markets are up for the 6th consecutive day, around 6%. Traditionally, as reported in a prior post, July is a good rally month for the markets. I would call this a mini-rally because of the uncertainty going forward.

Technically, all the major indexes are overbought - stiff resistance is ahead as the price levels near the 20, 50 and 200 day moving averages. Also, the rally is on lower than average volume, which shows a lack of conviction. Still, if earnings continue on an upbeat note, we should expect the rally to follow suit, barring any major new negative
economic news.

C. Cohn
Cohn-Reilly Report / News Flash

DOW Gains: 3-Straight Days

Housing industry takes a back seat to unemployment, which seem to be a factor in the market movements in the past week. Though it is surprising that the higher than expected unemployment claims did not cause a negative reaction from investors. When asked about the three straight days of gains many traders opine that the market gains has been driven by program trades. They may have a point. The DOW closed up The Dow rose 120.71

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K. Reilly
Cohn-Reilly Report / News-Flash

Summer Rally Continues

On the heels of positive earnings reports from Alcoa and CSX, kicking off the new earnings season, the markets are up for the 6th consecutive day, around 6%. Traditionally, as reported in a prior post, July is a good rally month for the markets. I would call this a mini-rally because of the uncertainty going forward. Technically, all the major indexes are overbought - stiff resistance is ahead as the price levels near the 20, 50 and 200 day moving averages. Also, the rally is on lower than average volume, which shows a lack of conviction. Still, if earnings continue on an upbeat note, we should expect the rally to follow suit, barring any major new negative economic news.


C. Cohn
Cohn-Reilly Report / News Flash

Unemployment Declines, and Impact of Slow Job Growth

125,000 drop in non-farm payrolls, biggest decline since October 2009. Unemployment lowers to 9.5 %, however this was due to 652,000 leaving the labor force and are no longer being counted. Bright spot - 83,000 new private sector jobs created. Economists report overall slowing in job growth and predict unemployment rate could creep up to 10% in the coming months. Average hourly wages were lower. Market reaction - dollar dropped against the Euro, oil fell in anticipation of slower growth, major indexes were little changed at the open but ended moderately down at the close.

C. Cohn
Cohn-Reilly Report / News Flash