LAST CHANGE % CHG
DJIA 18100.4 13.96 0.08%
Nasdaq 5218.86 8.72 0.17%
S&P 500 2128.28 1.64 0.08%
Japan: Nikkei 225 20650.9 50.8 0.25%
Hang Seng 25404.8 -10.46 -0.04%
Shanghai Composite 3992.11 34.76 0.88%
S&P BSE Sensex 28420.1 -43.19 -0.15%
Australia: S&P/ASX 5686.9 16.8 0.30%
UK: FTSE 100 6788.69 13.61 0.20%
PRICE CHG YIELD%
U.S. 2 Year -3/32 0.714
U.S. 5 Year -5/32 1.706
U.S. 10 Year -9/32 2.382
Australia 10 Year 10/32 2.923
China 10 Year 0/32 3.55
India 10 Year -2/32 8.021
Japan 10 Year 6/32 0.427
German 10 Year 6/32 0.716
LAST(MID) CHANGE
Australia $ (AUD/USD) 0.7371 -0.0001
Yen (USD/JPY) 124.31 0.04
S. Korean Won (USD/KRW) 1156.71 0.01
Chinese Yuan (USD/CNY) 6.2118 0.0005
Euro (EUR/USD) 1.0824 -0.0002
WSJ Dollar Index 88.69 0.01
LAST CHANGE % CHG
Crude Oil 49.94 -0.95 -1.87%
Brent Crude 56.51 -0.59 -1.03%
Gold 1095.7 -36.2 -3.20%
MARKETS AT A GLANCE (Data as of approximately 5 p.m. ET)
SNAPSHOT:
A batch of better-than-expected earnings reports pushed the Nasdaq Composite Index to a record close. Treasury bonds pulled back as a Fed official said the central bank could start raising rates in September. The dollar fell against the euro on optimism about Greece, while gold prices fell to five-year lows. Oil prices declined on concerns about a global supply glut.
OPENING CALL:
The Bank of Japan releases minutes Tuesday of its June 18-19 policy meeting. At its meeting on July 15, the BOJ policy board voted 8-1 to keep its annual asset purchase target unchanged, as was widely expected by the market. But pressure for fresh action could mount over the coming months if inflation doesn't stage a sharp recovery as promised by the BOJ. The BOJ cut its growth projection for this year to 1.7% from 2.0%, the second straight quarterly downgrade. Elsewhere in Asia, the Reserve Bank of Australia releases minutes of its July 7 policy meeting when policymakers kept the benchmark cash rate at a record-low 2%.
EQUITIES:
A batch of better-than-expected earnings reports pushed the Nasdaq Composite Index to its third straight record close, even as a selloff in commodities battered mining shares.
Upbeat corporate earnings reports lifted stocks. Hasbro Inc. notched the biggest gain in the S&P 500, rising 6.3%, after the toy maker reported better-than-expected profit and revenue in its second quarter.
Halliburton Co.'s shares advanced 1.8% after the oil-services company posted per-share earnings and revenue that beat expectations.
"Anything with growth is getting bought in a very, very aggressive manner," said Rick Fier, director of execution services at Conifer Securities. He added that the "geopolitics has really calmed down," referring to a recent bout of market volatility brought on by the financial crisis in Greece.
Shares of Morgan Stanley fell 0.4% after the bank reported lower earnings that still topped analyst expectations.
Monday's gains mark a return for major indexes to record or near-record territory. Receding fears about Greece's financial situation and some stronger-than-expected earnings reports have bolstered shares in recent sessions. For the month, the Dow has added 2.7% and the S&P 500 has gained 3.2%.
The tech-heavy Nasdaq Composite has jumped 4.65% in July, helped by a rise in Google Inc. and Netflix Inc. following strong quarterly reports last week. Shares of both companies gave back some of their recent gains Monday. Google Class A shares lost 1%, while Netflix stock fell 3.7%.
The second-quarter earnings season will continue to gain steam in coming days. Investors have been bracing for one of the weakest quarterly earnings seasons in years, with corporate performance hampered by a strong dollar and a selloff in oil prices. Including results from 67 companies in the S&P 500, second-quarter earnings are on track to slip 3.2% from a year ago. That is better than the 4.5% decline forecast by analysts heading into the reporting season.
Elsewhere , a tumble in gold prices prompted a selloff in the shares of several mining firms. Shares of gold producer Newmont Mining Corp. tumbled 12%. The SPDR Metals & Mining ETF Index lost 2.4%. Materials firms in the S&P 500 lost 0.9%.
Shares of Lockheed Martin Corp. rose 2% after the defense contractor agreed to buy Sikorsky Aircraft from United Technologies Corp. for $9 billion. United Technologies shares fell 0.2%.
China shares recovered to finish up for the third straight day Monday as the market continued to stabilize after its recent rout.
FOREX:
The euro rose against the dollar and the yen in light trading as investors took a positive view of Greece's efforts to repay its loans and restore financial stability.
Investors moved into the euro after Greek officials said that the country made payments to the European Central Bank and the International Monetary Fund. Greece also opened its banks for the first time in three weeks.
"It appears the euro rallied a bit on optimism around Greece making payments to creditors," said Brad Bechtel, managing director at Jefferies FX Group.
Many investors had feared that Greece's worsening finances, massive debts and confrontational negotiating tactics with creditors would drive the embattled country out of the euro area. The mood on the debt crisis shifted last week after eurozone officials and Greece agreed on a new bailout.
Despite Monday's gains, the euro's outlook remains grim. Little growth and inflation, low--and even negative--interest rates, and a massive bond-purchasing program all combine to discourage investors from holding the currency.
In addition, Greece remains a risk to the euro, said Steven Englander, head of developed-market currencies strategy at Citigroup Inc.
"A lot of investors are looking at this and saying it doesn't add up, that Greece will not likely withstand the austerity that's demanded of them," Mr. Englander said. "In a year Greece could be pulling out [of the euro] and trying out on their own. So, there's not huge enthusiasm here."
BONDS:
U.S. Treasury bonds pulled back as a Federal Reserve official reminded investors that the central bank could start raising interest rates in September.
Federal Reserve Bank of St. Louis President James Bullard said that he sees more than 50% probability for the Fed to tighten in September.
Mr. Bullard was the latest Fed official expressing intent to move away from zero-interest-rate policy. Fed Chairwoman Janet Yellen told lawmakers last week that the central bank was on course to tighten monetary policy later this year. Investors are concerned a shift in the ultraloose monetary policy could shrink the value of outstanding bonds.
Corporate-debt sales also weighed down on Treasury bond prices. U.S. firms are selling debt to lock in still-low borrowing costs before the Fed raises interest rates. Firms typically sell Treasury bonds to hedge against volatility in yields when they plan to sell new debt, highlighting the U.S. government-bond market's role in corporate-debt financing.
U.S. bond yields have risen over the past few months after a decline during the first quarter. The U.S. economy has been strengthening after a recent soft patch, reducing demand of ultrasafe U.S. government debt.
Investors also shed holdings as a fresh tightening campaign by the Fed draws near amid concerns over bonds' elevated value boosted partly by the Fed's zero-rate policy since the financial crisis.
Greece's sovereign-debt crisis and China's stock-market turmoil have diminished over the past week, which has shifted investors toward the Fed's tightening plan.
The Fed's next policy meeting is scheduled for July 28-29.
Many investors remain skeptical whether the Fed would raise rates as soon as September.
Fed-funds futures, used by investors and traders to place bets on central-bank policy, showed Monday that investors and traders see a 21% likelihood of a rate increase at the September meeting, according to data from the CME Group.
The odds of a rate increase at the December 2015 meeting were 60%.
COMMODITIES:
U.S. oil prices dipped below $50 a barrel for the first time since April on continued concerns that global crude-oil supplies are overwhelming demand.
After falling to near-six-year lows in March, oil prices rallied through April on expectations that cuts in U.S. oil drilling would lead to lower production. But prices have slid in recent weeks as output from the U.S. and other nations has stayed robust.
While oil consumption has risen this year, many analysts say demand is insufficient to eat away at the global glut of crude and that a drop in output is also needed.
Money managers, including hedge funds, cut their net bet on rising U.S. oil prices to the lowest point since March as of July 14, according to the Commodity Futures Trading Commission.
"There's a lot of crude around, period. That's what's underlying all of this," said Elaine Levin, president of energy brokerage Powerhouse. "The market's taking a more bearish view, and here we are chipping away at $50."
The recent Iranian nuclear deal added to concerns that more crude oil could be produced in the coming months.
The oil market has also been sensitive to currency moves this year. A stronger dollar makes oil, which is priced in dollars, more expensive for foreign buyers. The WSJ Dollar Index recently traded up 0.1%.
Gold prices fell to five-year lows, weighed down by the dollar's relentless gains as the prospect of the first U.S. interest-rate increase in more than nine years loomed.
(MORE TO FOLLOW) Dow Jones Newswires
July 20, 2015 17:30 ET (21:30 GMT)
TODAY'S HEADLINES:
Fed Finalizes Higher Capital Levels for Banks
The Federal Reserve finalized the amount of additional capital the nation's eight biggest banks must maintain, with J.P. Morgan facing the highest capital increase of the group.
IBM Profit Falls as Revenue Declines
IBM said second-quarter earnings fell as the technology giant posted its 13th-straight quarter of year-over-year revenue declines.
Lockheed Agrees to Buy Sikorsky for $9 Billion
Lockheed Martin agreed to pay $9 billion for Sikorsky Aircraft and announced plans to shed many commercial and government businesses that would refocus its role as the world's largest defense company by revenue.
Strong Trading Revenue Buoys Morgan Stanley
Morgan Stanley's second-quarter profit beat analysts' expectations as the Wall Street firm increased trading revenue.
Fed to Allow GE Capital Time to Complete Divestitures
The Federal Reserve is set to give General Electric's finance unit a temporary reprieve from having to face the central bank's strictest regulations, a nod to how GE has already announced plans to dramatically shrink the business.
Hanergy Cancels Deal to Buy Solar Panels
Hanergy Thin Film said that it would cancel a deal with its parent company to buy up to HK$50.51 billion ($6.52 billion) worth of solar panels.
Toshiba Must Adjust Operating Profit Down
Toshiba's top executives were involved in years of improper accounting procedures and the company needs to reduce its past operating profit by Yen151.8 billion ($1.22 billion).
Greek Banks Reopen With Restrictions
Greek bank branches reopened their doors after being closed for three weeks to prevent a banking system collapse, but almost all the restrictions on financial transactions remain in place.
JD.com Launches Online Mall for U.S. Brands
Chinese retailer JD.com said it will begin offering brands such as Converse and Samsonite, a move to tap into Chinese demand for U.S. products.
Halliburton Profit Skids as North America Revenue Falls
Halliburton said its second-quarter earnings plunged 93% as the oil-services giant's revenue tumbled on soft demand, particularly in its North America operations.
RECENT DJ EXCLUSIVES:
Beijing's Hand Steadies China's Yuan
Corporate Bonds Face Tougher Times -- Heard on the Street
Google's Prepaid Clicks -- Heard on the Street
Morgan Stanley's Bank Shot -- Heard on the Street
Pharma's Recovery Runs Low on Interest -- Heard on the Street
TODAY'S CALENDAR:
(All times GMT, followed by country and event)
2245 NZ Jun International Travel and Migration
2350 JPN Jun Bank of Japan Monetary Policy Meeting Minutes
0130 AUS Jul Reserve Bank Board Monetary Policy Meeting Minutes
0200 CHN Jun FDI Foreign Direct Investment
0430 HK Jun CPI
0500 JPN Jun Steel Production
0500 JPN May Indexes of Business Conditions - Revision
0530 JPN Jun Tokyo area department store sales
0530 JPN Jun Nationwide department store sales
0700 JPN Jun Convenience Store Sales
0830 UK Jun Public sector finances
1145 US 07/18 The Retail Economist/Goldman Sachs Weekly Chain Store Sales Index
1255 US 07/18 Johnson Redbook Retail Sales Index
1315 UK Treasury Committee evidence session with George Osborne on the Summer Budget
1315 US Annual Industrial Production and Capacity Utilization annual revision
1400 US Jun Regional & State Employment & Unemployment
2030 US 07/17 API Weekly Statistical Bulletin
2301 UK Jun Scottish Retail Sales Monitor
(END) Dow Jones Newswires
July 20, 2015 17:30 ET (21:30 GMT)
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