Rally Rallies On, Risky Retail, Jobs Shaky

  • August 13, 2009
  • David Goodboy

Yesterday’s monster rally rallied on today despite a very sharp drop in Index Futures prior to the open. The pre-open selling was triggered by negative news emerging on the retail and jobs front. However a positive Treasury Auction and the unstoppable momentum of yesterday quickly turned shares positive on the day. The DJIA +36.58 climbed to 9398.19, the tech heavy Nasdaq advanced +10.63 to 2009.35 and the broad based S&P surged another +6.92 to 1012.73.

CIT Group
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KB Home
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Harris Corp
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PowerRating) – The maker of military radios lifted its 2010 forecast while shares climbed 12.14% or $3.70 to $34.19.

Middleby Corp
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PowerRating) – Fell 1.01% or 53 cents to $51.98/share after the appliance maker missed analysts estimates by 8.8%.

Oil added 36 cents to $70.99, gold climbed $4.00 to $956.50 while the fear index VIX slipped 2.91% to 24.71.

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Market Snapshot

Dow

 +36.58 9398.19

NASDAQ

 +10.63 2009.35

S&P 500

 +6.92 1012.73

Economic
News

Productivity-Prel (Q2): Consensus: 5.4%, Prior: 1.6%

Unit Labor Costs (Q2): Consensus: -2.4%, Prior: 3.0%

Wholesale Inventories (Jun): Consensus: -0.9%, Prior: -0.8%

Trade Balance (Jun): Consensus: -$28.5B, Prior: $26.0B

Crude Inventories (08/07): Consensus: NA, Prior: +1.67M

Treasury Budget (Jul): Consensus: -$180.0B, Prior: NA

FOMC Rate Decision: Consensus: NA, Prior: 0.00%-0.25%

Export Prices ex-ag. (Jul): Consensus: NA, Prior: 0.8%

Import Prices ex-oil (Jul): Consensus: NA, Prior: 0.2%

Initial Claims (08/08): Consensus: 545K, Prior: 550K

Retain Sales (Jul): Consensus: 0.7%, Prior: 0.6%

Retail Sales ex-auto (Jul): Consensus: 0.1%, Prior: 0.3%

Business Inventories (Jun): Consensus: -0.9%, Prior: -1.0%

Core CPI (Jul): Consensus: 0.1%, Prior: 0.2%

CPI (Jul): Consensus: 0.0%, Prior: 0.7%

Capacity Utilization (Jul): Consensus: 68.4%, Prior: 68.0%

Industrial Production (Jul): Consensus: 0.4%, Prior: -0.4%

Mich Sentiment-Prel (Aug): Consensus: 69.0, Prior: 66.0

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