TradeTheNews.com US Market Update: Equities Swoon After The Weak August ISM Manufacturing Data
By TradeTheNews.com - Tue 04 Sep 2012 10:20:03 CT
***Economic Data***
- (EU) OECD July inflation Y/Y: 1.9% v 2.0% prior
- (BR) Brazil July Industrial Production M/M: 0.3% v 0.2%e; Y/Y: -2.9% v -3.3%e
- (RU) Russia Aug Consumer Prices M/M: 0.1% v 0.2%e; Y/Y: 5.9% v 6.0%e; CPI YTD: 4.6% v 4.7%e
- (RU) Russia Aug CPI Core M/M: 0.6% v 0.5%e; Core CPI YTD: 3.5% v 2.9% prior
- (US) Aug Final Markit US PMI Manufacturing: 51.5 v 51.9e
- (MX) Mexico Aug Consumer Confidence: 97.6 v 98.5e
- (EU) ECB Weekly Forex Reserves w/e Aug 31st: €241.8B v €244.0B prior
- (CA) RBC Canada Aug Manufacturing PMI: 53.04 v 53.05 prior
- (SG) Singapore Aug Purchasing Managers Index: 49.1 v 49.5e; Electronics Sector Index: 50.7 v 49.0e
- (US) Aug ISM Manufacturing: 49.6 v 50.0e; ISM Prices Paid: 54.0 v 46.0e
- (US) July Construction Spending M/M: -0.9% v +0.4%e
- (DK) Denmark Aug Foreign Currency Reserves (DKK): 514.4B v 514.4B prior

- US equity indices are wilting this morning in the wake of the August ISM manufacturing report. The numbers are at their lowest level since July 2009, and the August report caps three solid months with the index below the 50 level. Ominously, the prices paid index has surged higher, well above expectations, raising the specter of stagflation. Analysts focused on the employment subindex, which remains in positive territory, ahead of the key August payrolls report on Friday. The greenback has softened post-ISM, with EUR/USD around the 100-day moving average of 1.2577 and USD/JPY stuck around 78.30. Gold futures momentarily lunged for $1,700 post data, but did not manage to break above the level

- Shares of consumer facing names Campbell Soup and Smithfield Foods are both more or less unchanged after earnings this morning. Campbells's Q4 results were a bit better than expected, while Smithfield's were below expectations. Shale drilling services firm Heckmann reached a deal to buy Power Fuels Inc. in a cash-and-stock deal valued at about $381M. Shares of Heckmann are up 20%, as the company says the deal will almost double its annual revenue. Valeant Pharmaceuticals struck a $2.6 billion deal to take over dermatology competitor Medicis. Shares of VRX are up 16%. Shares of Netflix are down 8% on news that

***Looking Ahead***
- (EU) EU President Van Rompuy meets German Chancellor Merkel in Berlin
- 11:00 (US) Fed to buy $1.5-2.0B in bonds
- 11:30 (US) Treasury to sell $32B in 3-Month and sell $28B in 6-Month Bills
- 14:00 (US) Fed to buy $4.25-5.00B in notes
- 17:00 (US) Aug Total Vehicle Sales: 14.20Me v 10.05M prior; Domestic Vehicle Sales: 11.05Me v 11.00M prior
- 17:00 (CO) Colombia Aug Producer Price Index M/M: No est v -0.2% prior; Y/Y: No est v -0.3% prior
- 22:30 (CN) China Aug HSBC Services PMI: No est v 53.1 priorit has lost exclusive access to EPIX's content library.



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