Stocks Drop As Spanish Debt Fears Return

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.

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.

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.

Dow Falls 69 Points

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.

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%.

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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.

h3 European Markets Gain On Upbeat Data/h3 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%.

Nasdaq Surrenders Early Gains To Close Down .2%

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

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.

h3 European Political Uncertainty Sends Stocks Sharply Lower/h3 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.

Nasdaq Drops 1%

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.

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.

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.

Apple's Recent Slide due to Earnings Concerns

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

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.