U.S stocks gain on earnings, Fed uncertainty weighs; Dow up 0.02%

U.S. stocks finished Friday higher after second-quarter earnings out of the financial sector beat expectations, though remaining uncertainty as to when the Federal Reserve will scale back stimulus measures hampered gains.

Stimulus programs such as the Fed's monthly USD85 billion bond-buying program push up stocks by keeping interest rates low.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.02%, the S&P 500 index ended up 0.31%, while the Nasdaq Composite index rose 0.61%.

U.S. financial institutions JPMorgan Chase & Co. and Wells Fargo & Co. reported earnings earlier that beat Wall Street expectations, which sent stock prices rising.

Wells Fargo reported earnings of USD0.98 a share, beating forecasts for USD0.93 a share, due in part to a stronger housing market.

JPMorgan reported earnings of USD1.60 a share, well above consensus forecasts for USD1.44 a share.

Monetary uncertainty dampened the rally, however.

Fed Chairman Ben Bernanke said Wednesday evening that economic data suggest that the U.S. economy still requires highly accommodative monetary policies, though on Friday, Federal Reserve Bank of Philadelphia President Charles Plosser said such policies should begin to wind down this year.

"The first step is to wind down our asset purchases by the end of the year in a gradual and predictable manner," Plosser said earlier Friday. 

"As I said, I see little if any benefit from these purchases, and growing costs."

Also dampening stock gains, logistics giant UPS earlier cut its 2013 earnings forecasts on concerns the U.S. economy still battles headwinds. 

Leading Dow Jones Industrial Average performers included Bank of America, up 1.85%, American Express, also up 1.85%, and The Travelers Companies, up 1.81%.

The Dow Jones Industrial Average's worst performers included Boeing, down 4.59%, Verizon Communications, down 1.52%, and General Electric, down 0.75%.

European indices, meanwhile, finished mixed.

After the close of European trade, the EURO STOXX 50 fell 0.24%, France's CAC 40 fell 0.36%, while Germany's DAX 30 finished up 0.66%. Meanwhile, in the U.K. the FTSE 100 finished up 0.02%.

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Gold declines as market looks past Bernanke comments

Gold prices fell on Friday after investors locked in gains stemming from Federal Reserve Chairman Ben Bernanke's dovish comments made earlier this week and sold the commodity for profits.

Gold prices shot up earlier this week after Bernanke said ultra-loose monetary policies, including the Fed's monthly USD85 billion asset-purchasing program, will stay in place for the foreseeable future.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.33% at USD1,275.65 a troy ounce in U.S. trading on Friday, up from a session low of USD1,266.55 and down from a high of USD1,287.05 a troy ounce.

Gold futures were likely to find support at USD1,214.55 a troy ounce, Monday's low, and resistance at USD1,297.05, Thursday's high.

Gold prices shot up after Fed Chairman Bernanke said Wednesday evening that the U.S. economy still requires highly accommodative monetary policies just hours after the release of the minutes from the Fed's June monetary policy meeting, which revealed other U.S. central bankers felt likewise.

Stimulus tools weaken the dollar and make gold an attractive hedge, though by Friday, profit-taking erased the yellow metal's gains.

Soft economic indicators released in the U.S. and Europe on Friday also contributed to gold's decline by strengthening the dollar.

Euro zone industrial production fell 0.3% in May, according to official data, surpassing market calls for a 0.2% decline after a 0.5% increase the previous month. 

The numbers pressured the euro lower, as the European Central Bank has suggested that interest rates may remain at their currently low levels or possible fall even further, which bolstered the greenback.

Meanwhile in the U.S. the preliminary Thomson Reuters/University of Michigan consumer sentiment index fell to 83.9 in July from 84.1 in June, defying expectations for a rise to 85.0. 

Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, beating expectations for a 0.5% gain and above a 0.5% increase the previous month. 

The core producer price index, which excludes food and energy, rose 0.2% last month compared to expectations for a 0.1% increase, beating a 0.1% rise in May.

Elsewhere on the Comex, silver for September delivery was down 0.82% at USD19.793 a troy ounce, while copper for September delivery was down 0.78% and trading at USD3.153 a pound.

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Dollar remains broadly higher after downbeat UoM report

The U.S. dollar remained broadly higher against the other major currencies on Friday, after the release of downbeat U.S. consumer sentiment data, although Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to weigh. 

During U.S. morning trade, the dollar was higher against the euro, withEUR/USD sliding 0.45% to 1.3038. 

The euro came under pressure after official data showed that industrial production in the euro zone fell 0.3% in May, exceeding expectations for a 0.2% downtick, after a 0.5% increase the previous month. 

The single currency was also hit after the European Central Bank’s monthly bulletin said Thursday that the extended period of time the bank expects interest rates to remain at present or lower levels is “flexible” and indicated that further rate cuts are possible. 

The greenback was also lower against the pound, with GBP/USDshedding 0.48% to 1.5111. 

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.20% to trade at 99.16, and with USD/CHFedging up 0.08% to 0.9477. 

The greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.24% to 1.0393,AUD/USD tumbling 1.39% to 0.9060 and NZD/USD dropping 0.76% to 0.7792. 

In a report, the Australian Bureau of Statistics said home loans increased by 1.8% in May, less than the expected 2.5% rise, after a 1.2% gain the previous month. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to 83.19. 

In a preliminary report, the University of Michigan said its index of consumer sentiment fell to 83.9 in July, from a reading of 84.1 the previous month, confounding expectations for a rise to 85.0. 

Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, more than the expected 0.5% gain, after 0.5% increase the previous month. 

Core producer price inflation, which excludes food and energy, rose 0.2% last month, compared to expectations for a 0.1% increase, after a 0.1% rise in May. 

The greenback weakened broadly on Wednesday after Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

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U.S. stocks open slightly higher, eyes on UoM data; Dow Jones up 0.10%

U.S. stocks opened slightly higher on Friday, as markets awaited the release of upcoming U.S. consumer sentiment data, while Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to support global equities. 

During early U.S. trade, the Dow Jones Industrial Average edged up 0.10%, the S&P 500 index inched 0.02% higher, while the Nasdaq Composite index added 0.18%. 

Global stocks gained ground after Bernanke on Wednesday said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

Bernanke said the bank will not raise interest rates until the U.S. unemployment rate hits 6.5%.

Earlier Friday, the U.S. Department of Labor said producer price inflation rose 0.8% in June, more than the expected 0.5% gain, after 0.5% increase the previous month. 

Core producer price inflation, which excludes food and energy, rose 0.2% last month, compared to expectations for a 0.1% increase, after a 0.1% rise in May. 

Dell rose 0.31% after billionaire investor Carl Icahn, in a bid to force Michael Dell to sweeten his USD24.4 billion buyout proposal for Dell, said he’ll increase his offer for the PC maker by adding a warrant. 

In the same sector, Apple shares edged up 0.07%, even after Finnish cellphone maker Nokia introduced the Lumia 1020, a smartphone with a 41-megapixel camera, in an effort to catch up with rivals including Samsung Electronics and the iPhone maker. 

Microsoft slipped 0.27% after the software giant announced a long-awaited restructuring on Thursday. As part of the reorganization, Microsoft announced that the president of its Microsoft Office division, Kurt DelBene, will be retiring. 

Separately, the Guardian reported earlier that Microsoft has been helping the U.S. National Security Agency to bypass encryption on web chats via the company's new Outlook.com portal. 

Among earnings, JPMorgan Chase beat expectations on both revenue and earnings, sending shares up 0.13%. 

Wells Fargo was also higher, climbing 0.98%, after the U.S. lender topped market expectations for earnings and revenue. 

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 eased 0.09%, France’s CAC 40 fell 0.15%, Germany's DAX gained 0.63%, while Britain's FTSE 100 added 0.20%. 

During the Asian trading session, Hong Kong's Hang Seng Index dropped 0.75%, while Japan’s Nikkei 225 Index added 0.23%. 

Later in the day, the U.S. was to release preliminary data from the University of Michigan on consumer sentiment.

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Forex - GBP/USD remains lower after UoM report

The pound remained lower against the U.S. dollar on Friday, after the release of disappointing U.S. consumer sentiment data, although Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to weigh on the greenback. 

GBP/USD hit 1.5189 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5109, shedding 0.49%. 

Cable was likely to find support at 1.5028, the low of July 3 and resistance at 1.5283, the high of July 4. 

In a preliminary report, the University of Michigan said its index of consumer sentiment fell to 83.9 in July, from a reading of 84.1 the previous month, confounding expectations for a rise to 85.0. 

Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, more than the expected 0.5% gain, after 0.5% increase the previous month. 

Core producer price inflation, which excludes food and energy, rose 0.2% last month, compared to expectations for a 0.1% increase, after a 0.1% rise in May. 

On Wednesday, Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program. 

Sterling was steady against the euro with EUR/GBP inching up 0.04%, to hit 0.8627. 

The euro remained under pressure after official data showed that industrial production in the euro zone fell 0.3% in May, exceeding expectations for a 0.2% downtick, after a 0.5% increase the previous month. 

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Forex - EUR/USD extends losses on disappointing E.Z. data

The euro extended losses against the U.S. dollar on Friday, after the release of disappoiting euro zone industrial production data, while demand for the greenback still remained under pressure. 

EUR/USD hit 1.3036 during European morning trade, the session low; the pair subsequently consolidated at 1.3044, shedding 0.39%. 

The pair was likely to find support at 1.2965, the low of July 2 and resistance at 1.3147, Thursday's high. 

Official data showed that industrial production in the euro zone fell 0.3% in May, exceeding expectations for a 0.2% downtick, after a 0.5% increase the previous month. 

The euro was also hit after the European Central Bank’s monthly bulletin said Thursday that the extended period of time the bank expects interest rates to remain at present or lower levels is “flexible” and indicated that further rate cuts are possible. 

Meanwhile, demand for the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke on Wednesday said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

Bernanke said the bank will not raise interest rates until the U.S. unemployment rate hits 6.5%.

The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program. 

The euro was fractionally lower against the pound with EUR/GBP easing 0.08%, to hit 0.8616. 

Later in the day, the U.S. was to produce official data on producer price inflation and preliminary data from the University of Michigan on consumer sentiment.

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Forex Trading Signal for 12th July 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

 Up Trend :

 (1) BUY

E/P: 1.30908

T/P: 1.31500

S/L: 1.30500

GBP/USD

UP Trend:

(1) BUY

E/P: 1.51385

T/P: 1.51800

S/L: 1.50700

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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European stocks higher ahead of euro zone data; Dax up 0.49%

European stocks were higher on Friday, as investors eyed the release of euro zone industrial production data later in the day, while Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to support global equities. 

During European morning trade, the EURO STOXX 50 edged up 0.25%, France’s CAC 40 added 0.20%, while Germany’s DAX 30 climbed 0.49%. 

Global stocks gained ground after Bernanke on Wednesday said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale climbed 0.77% and 0.84%, while Germany's Deutsche Bank jumped 1.13%. 

Peripheral lenders added to gains, with Spanish bank Banco Santander rising 0.31%, while Italy's Unicredit and Intesa Sanpaolo gained 0.17% and 0.93%. 

Elsewhere, SAP AG advanced 0.70% and Cap Gemini jumped 1.76% after Infosys Ltd. issued a better-than-estimated sales forecast. 

In London, FTSE 100 added 0.30%, as U.K. lenders tracked their European counterparts higher. 

HSBC Holdings edged up 0.28% and Barclays advanced 0.82%, while Lloyds Banking and the Royal Bank of Scotland rallied 0.97% and 1.36% respectively. 

Adding to gains, Invensys skyrocketed 15.88% after Schneider Electric offered about GBP3.3 billion for the U.K. company. 

Meanwhile, mining stocks were mostly lower, as Rio Tinto and BHP Billiton were down 1.12% and 0.07%, while Anglo American plummeted 1.10%. 

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% slip, S&P 500 futures signaled a 0.09% loss, while the Nasdaq 100 futures indicated a 0.05% dip. 

Later in the day, the U.S. was to produce official data on producer price inflation and preliminary data from the University of Michigan on consumer sentiment.

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