The International Monetary Fund cut its world economic growth forecast for 2014 from 3.6 percent to 3.4 percent and 2015 from 4 percent to 3.9 percent, on reductions in growth in both the U.S. and China. (1) Apple’s Q3 earnings advanced 12 percent to $7.75 billion or $1.28 a share – topping forecasts of $1.23 – as iPhone sales rose 12.7 percent to 35.2 million and Mac sales increased 18 percent year-on-year. (2) Apple shares are up 18 percent for the year and just 6 percent away from reaching another an all-time high. (3)
As expected, U.S. consumer prices rose 0.3 percent in June and 2.1 percent year-on-year, as gas prices climbed 3.3 percent. Core inflation rose 0.1 percent for the month and 1.9 percent year-on-year – missing forecasts of 0.2 percent and 2.0 percent respectively – as the price of new cars and hotel rates declined. (4) U.S. existing home sales advanced at the fastest pace in 8 months – rising 2.6 percent to a seasonally adjusted annual rate of 5.04 million – as inventories rise to a 12-month high and interest rates level off. (5) The International Monetary Fund (IMF) reduced its economic growth forecast for the U.S. from 2 percent to 1.7 percent, after Q1 gross domestic product contracted 2.9 percent. (6) The IMF similarly cut its estimate for China – down from 7.5 percent to 7.4 percent in 2014 and from 7.3 percent to 7.1 percent in 2015 – as domestic demand slows. (7) The IMF raised its economic growth forecast for Germany, with this year’s projection raised from 1.7 percent to 1.9 percent and next year from 1.6 percent to 1.7 percent, as it shrugged “off concerns of a slowdown in the euro zone’s largest economy.” (8)
Facebook’s Q2 profit soared 121 percent $791 million or $0.30 a share, as revenue jumped 61 percent on mobile advertising. On an adjusted basis, the company earned $0.42 a share compared to forecasts of $0.32. (9) The results had shares climbing 7.3 percent to an all-time high of $76.45. (10) Trader provides proof on how his new revolutionary day trading strategy has consistently been turning losing traders into super traders, with profits of over a $100k a month – read the full story here. Halliburton’s Q2 earnings climbed 20 percent to $774 million or $0.91 a share – matching forecasts – as revenue rose 10 percent to $8.05 billion versus estimates of $7.88 billion. Much of the revenue gain came from an 11 percent increase in North America. The news sent shares higher. (11) Despite reporting that revenue rose 8.2 percent to $829.3 million, Hasbro Inc’s Q2 earnings fell from $36.5 million to $33.5 million. On an adjusted basis, the company earned $0.36 a share – matching forecasts. Shares fell more than 3 percent. (12) McDonald’s Q2 profit fell 0.7 percent to $1.39 billion or $1.40 a share – missing forecasts of $1.43 – as sales in the U.S. fell 1.4 percent. Total revenue increased 1.4 percent $7.18 billion compared to estimates of $7.29 billion. The results sent shares lower. (13)
The Bloomberg U.S. Dollar Spot Index rose 0.4 percent for the week to a 1-month high of 1,013.84, after a U.S. report showed that durable goods orders rose by a better-than-expected 0.7 percent in June. (14) Find out how traders are turning 15 minutes a week into a solid weekly income during a free training event being offered to our readers – sign up here. The Reserve Bank of New Zealand raised its key interest rate by 0.25 percent to a 5-year high of 3.5 percent – marking the fourth-straight meeting that the bank has raised rates. The move was anticipated after New Zealand’s economy outpaced the U.S. with a growth of 3.3 percent. (15) Russia’s central bank unexpectedly raised its interest rate 0.5 percent to 8 percent in an attempt to stem increasing inflation and support the currency in the wake of rising political tensions. Analysts had called for the rate to remain unchanged. (16)
According to Wednesday’s EIA report, the nation’s crude oil supplies fell by 4 million barrels to 371.1 million barrels last week – exceeding forecasts for a draw of 2.5 million barrels. Supplies now stand 1.9 percent higher year-on-year. Gasoline supplies rose more than anticipated – advancing 3.4 million barrels to 217.9 million compared to forecasts for a build of 900,000 barrels. Distillates rose 1.6 million barrels to 125.9 million versus forecasts for an increase of 1.9 million. (17)
Natural gas storage rose by 110 billion cubic feet to 1.829 trillion cubic feet last week – exceeding forecasts for a build of 102 billion cubic feet. Supplies are 24 percent lower year-on-year and 31 percent below the 5-year average. (18)
According to the USDA, U.S. soybean crops are in the best shape since 1994, with 73 percent of the harvest rated in good or excellent condition – boosting bets that production will climb to an all-time high of 3.8 billion bushels. Corn was rated at its highest level since 2004, with 76 percent in good to excellent condition, as mild weather throughout the Midwest lifts yields. (19) The EU Commission’s MARS unit raised its U.K. wheat yield estimate from 8.05 metric tons per hectare to 8.13 metric tons per hectare, which is a 10.1 percent increase over last year and an 8.5 percent increase over the 5-year average, as weather remains favorable. (20)
Anglo American Platinum Ltd. announced plans to sell some of its South African platinum mines this week, after the 5-month long wage strike sent first-half profits slumped 88 percent. The sale of its Union and Rustenburg mines and its Pandora joint venture would reduce the platinum producer’s workforce by more than half. (21) India’s gold imports jumped from $1.9 billion to $3.1 billion in June, as the Reserve Bank of India increased the number of entities allowed to import the metal. Silver imports tumbled 53.4 percent year-on-year to $212.8 million, as industrial demand declines. (22)
Pro S&P pit trader Larry Levin is giving away his award-winning eBook, “How I made $1,900,336.82 Trading Commodities” 100% free for a limited time get it here. “Brazilian coffee cooperative Coocafe expects production among its members to fall” from a year-earlier 1.5 million bags to between 900,000 and 1 million bags, as one of the worst droughts in decades hurt yields earlier in the year. (23) Coffee production in Indonesia is expected to rise 2.9 percent year-on-year to 711,000 metric tons, while cocoa bean production is estimated to jump 14.7 percent year-on-year to 817,000 tons. Sugar output is projected lower at 2.5 million tons – down from a previous forecast of 2.9 million. (24)
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