Dow fell 31, decliners over advancers 3-2 & NAZ added 2. The MLP index was off 3 to the 445s & the REIT index slipped fractionally to 277. Junk bond funds sold off & Treasuries were also weak. Oil & gold also pulled back.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
The pace of growth in the US services sector accelerated in Jul, picking up from a 3-year low as new orders surged to their highest level in 5 months. The Institute for Supply Management (ISM) services index rose to 56 from 52.2 in Jun, easily topping expectations for 53. The report added to views that economic growth will strengthen in H2, as last week's ISM manufacturing report showed the sector's growth hit a 2-year high in Jul. The service sector figure surpassed even the high end of forecasts & matched what had been the high for the year reached in Feb. A reading above 50 indicates expansion in the sector. The forward-looking new orders component also hit its highest level since Feb, jumping to 57.7 from 50.8. But the employment index softened, falling to 53.2 from 54.7. The exports index moderated to 49.5 from 47.5, suggesting demand from abroad remained weak even as the measure shrank less than in Jun. The imports index slowed to 50.5 from 53.5.
ISM Non-Manufacturing Index Increased to 56 in July From 52.2
Photo: Bloomberg
The Greek gov is more concerned with producing a primary budget surplus this year & returning to growth from the beginning of 2014 than on how to fill holes in its financing over the next years, Finance Minister Yannis Stournaras said. Achieving these targets will be the “catalyst” to solve the problem of Greece's financing gap, Stournaras said today. He reiterated that according to a Nov agreement of euro area finance chiefs, Greece’s creditors would address the issue of its funding needs as long as Greece achieves a budget surplus before interest payments. “There is no Plan B, everything has been agreed with the euro group,” Stournaras said. “What we’re trying to do now is to produce a primary surplus this year, complete these structural reforms and come back to positive growth rates. If we achieve these, then the rest of our problems will be solved.” IMF staff said in a report last week that Greece will probably need more money & debt relief to meet the aid program’s targets. The fund’s staff said €4.4B of financing has yet to be identified next year under the rescue package. “Up to August 2014 Greece is fully covered,” Stournaras said. “For the remaining period the understanding is that if Greece satisfies all the preconditions then our partners will agree to cover the financing gap, so this is not a great concern to us.”
Greek Government Focused on Surplus, Stournaras Says
Tablet shipments declined in Q2 from Q1 as consumers put off purchases of Apple's iPad to wait for a new model expected later this year, according to researcher IDC. Unit shipments fell 9.7% to 45.1M, IDC said. IPad sales slid to 14.6M units from 19.5M in Q1. Postponing the introduction of the next iPad until H2 dragged down results, which also fell for competitors including Samsung. AAPL had previously debuted new iPads heading into Q2, & is now holding off until closer to the holiday shopping season. “A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” Tom Mainelli, research director for tablets at IDC, said. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter.” AAPL still led the tablet market with a 32.4% share. Samsung, in 2nd place with 18%, had sales slip to 8.1M units from 8.6M in Q1. AAPL stock rose 4 & is at a high since early this year.
Tablet Shipments Slow in Second Quarter Amid Weak IPad Demand
Markets are resting after their recent run up. Maybe traders are slow to return, taking longer weekend holidays. The ISM data on the service sector sounds good, but those jobs are lower paying ones. They help reduce the unemployment rate but are not all that helpful to the economy. The high yield sectors continue out of favor. Even the red hot MLP index has retreated to where it was in late Mar.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.04% | |
U.S. 2-year |
0.31% | |
U.S. 10-year |
2.65% |
| CLU13.NYM | ...Crude Oil Sep 13 | ...105.97 |  ...0.97 | (1.0%) |
| GCQ13.CMX | ...Gold Aug 13 | ......1,305.90 | ...4.70 | (0.4%) |
Photo: Bloomberg
The pace of growth in the US services sector accelerated in Jul, picking up from a 3-year low as new orders surged to their highest level in 5 months. The Institute for Supply Management (ISM) services index rose to 56 from 52.2 in Jun, easily topping expectations for 53. The report added to views that economic growth will strengthen in H2, as last week's ISM manufacturing report showed the sector's growth hit a 2-year high in Jul. The service sector figure surpassed even the high end of forecasts & matched what had been the high for the year reached in Feb. A reading above 50 indicates expansion in the sector. The forward-looking new orders component also hit its highest level since Feb, jumping to 57.7 from 50.8. But the employment index softened, falling to 53.2 from 54.7. The exports index moderated to 49.5 from 47.5, suggesting demand from abroad remained weak even as the measure shrank less than in Jun. The imports index slowed to 50.5 from 53.5.
ISM Non-Manufacturing Index Increased to 56 in July From 52.2
Photo: Bloomberg
The Greek gov is more concerned with producing a primary budget surplus this year & returning to growth from the beginning of 2014 than on how to fill holes in its financing over the next years, Finance Minister Yannis Stournaras said. Achieving these targets will be the “catalyst” to solve the problem of Greece's financing gap, Stournaras said today. He reiterated that according to a Nov agreement of euro area finance chiefs, Greece’s creditors would address the issue of its funding needs as long as Greece achieves a budget surplus before interest payments. “There is no Plan B, everything has been agreed with the euro group,” Stournaras said. “What we’re trying to do now is to produce a primary surplus this year, complete these structural reforms and come back to positive growth rates. If we achieve these, then the rest of our problems will be solved.” IMF staff said in a report last week that Greece will probably need more money & debt relief to meet the aid program’s targets. The fund’s staff said €4.4B of financing has yet to be identified next year under the rescue package. “Up to August 2014 Greece is fully covered,” Stournaras said. “For the remaining period the understanding is that if Greece satisfies all the preconditions then our partners will agree to cover the financing gap, so this is not a great concern to us.”
Greek Government Focused on Surplus, Stournaras Says
Tablet shipments declined in Q2 from Q1 as consumers put off purchases of Apple's iPad to wait for a new model expected later this year, according to researcher IDC. Unit shipments fell 9.7% to 45.1M, IDC said. IPad sales slid to 14.6M units from 19.5M in Q1. Postponing the introduction of the next iPad until H2 dragged down results, which also fell for competitors including Samsung. AAPL had previously debuted new iPads heading into Q2, & is now holding off until closer to the holiday shopping season. “A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” Tom Mainelli, research director for tablets at IDC, said. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter.” AAPL still led the tablet market with a 32.4% share. Samsung, in 2nd place with 18%, had sales slip to 8.1M units from 8.6M in Q1. AAPL stock rose 4 & is at a high since early this year.
Tablet Shipments Slow in Second Quarter Amid Weak IPad Demand
Apple (AAPL)
Markets are resting after their recent run up. Maybe traders are slow to return, taking longer weekend holidays. The ISM data on the service sector sounds good, but those jobs are lower paying ones. They help reduce the unemployment rate but are not all that helpful to the economy. The high yield sectors continue out of favor. Even the red hot MLP index has retreated to where it was in late Mar.
Dow Jones Industrials
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