Morning Update: 6/26/2012

The stock market indices started off on a very bad note for the week with a big gap down due to the overseas news from Europe and elsewhere. But more importantly, the indices kept falling, and falling hard, until late morning when they finally found some stability. At that point, the Nasdaq 100 had dropped dramatically from an opening of 2563 down to the 2527-2528 area. The S&P 500 dropped from 1329 down to 1309. They did manage to bounce midday, backed off midafternoon to test, and then bounced to higher highs in the afternoon, but rolled over in the last 10 minutes to end up sharply lower.It was the worst day on Wall Street in 2012 on Thursday in terms of the losses, and it was a steady down move all day….   Net of the day, the Dow was down 138.12 at 12,502.66, about 45 points off its low, the S&P 500 was down 21.30 at 1313.71, about 4 points off its low, and the Nasdaq 100 down 51.99 at 2533.54, only 6 points off it.

Stepping back and reviewing the hourly chart patterns, the indices were down sharply in the morning in a 5-wave decline, rallied in a 3-wave corrective move, and then backed off to retest the lows. When that was successful, they tried a late rally, which failed and rolled over into the close.



Tuesday, June 26
9:00 am: S&P/CS 20 City M/m, April, est. 0.2%, prior 0.1%
9:00 am: S&P/Case-Shiller Home Price Index, prior 134.1
10:00 am: Consumer Confidence, June, consensus, 63.5 prior 64.9
10:00 am: Richmond Fed Manufacturing Index, consensus 5, prior 4
11:00 Fed to purchase $4.5b-5.5b in 8 to 10-year range
11:30 Treasury selling $25b 1-year bills, 4 weeks bills
1:00 Treasury selling $35b 2-year notes
6:00 CHF UBS Consumption Indicator
8:30 GBP Public Finances
8:30 GBP PSNB ex Inventions
8:30 GBP Public Sector Net Borrowing
22:45 NZD Trade Balance
10:30 Spain to sell 3-month, 6-month bills

Robbins & Myers (RBN) EPS 89c, revs 268M
H & R Block HRB) EPS $2.02, revs 2.01B

New home sales were 369,000, more than the expected 350,000. The Dallas Fed survey came in at 5.8. better than the expected reading of zero. On Tuesday we will get the Case Shiller home price index and consumer confidence.




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