Markets could face rocky week

Watch Spanish bonds, Apple, Caterpillar, McDonald's, Ford and Facebook.

By Charley Blaine Jul 23, 2012 4:39AM
Futures trading suggests a weak open today for U.S. stocks. Asian stocks slumped in Monday trading, and European stocks opened lower.

But that's not all investors should be thinking about. The government will offer its first estimate of gross domestic product on Friday. And it could be a stinker.

Among the earnings due this week are reports from McDonald's (MCD) on Monday; Apple (AAPL) on Tuesday; Boeing (BA), Ford Motor (F) and Caterpillar (CAT) on Wednesday: Amazon.com (AMZN), Facebook (FB) and Exxon Mobil (XOM) on Thursday; and Chevron (CVX) on Friday.

Why Spain continues to roil markets
The reason for the Asian pullback and the European sell-off was worries about Spain. The region of Murcia, in southeastern Spain, may need a bailout. Murcia would be the third Spanish region to warn about cash problems. Catalonia and Valencia have already signaled they need help.

Spain's banks already need help. There is a growing worry that the Spanish government will need to be bailed out.

Spain's 10-year bond yield hit 7.52% this morning, something that has never happened in the euro era.

The other issue was Greece, which could run out of cash soon -- literally -- if the eurozone and the IMF see the Greeks aren't meeting their austerity agreements. "If Greece doesn’t fulfill those conditions, then there can be no more payments," German Vice Chancellor Philipp Roesler said in a Sunday television interview.

The Greek and Spanish worries pushed the euro lower against the dollar. The euro was trading at $1.20919, its lowest level since 2005.

Here are the key issues for the week:

The euro's slump. It may actually good for Europe because it will make European exports cheaper, but the falling euro means the dollar is rising. That hurts U.S. exports and depresses corporate profits of big U.S. companies. IBM said currency translation forced it to reduce its reported second-quarter revenue by $1 billion. You will see the currency issue today when McDonald's reports, but it will be an issue all week, especially with Boeing and Caterpillar on Wednesday and 3M (MMM) on Thursday.

Apple's growth. Apple reports after Tuesday's close. There's a growing worry that sales growth for its iPhone may be slowing as some users delay purchases until its new iPhone 5 comes out in the fall.

The housing recovery. It may not be a big recovery, but housing is recovering. Partly it's due to fewer foreclosures coming onto the market. That's forcing big institutional investors to engage in bidding wars to buy up blocks of foreclosed homes as quickly as possible. But there is more construction of apartments, and even single-family home sales are showing strength. You can see this in the non-seasonally adjusted data from the National Association of Realtors recent existing-home sales. Sherwin-Williams (SHW) last week said paint demand is growing, with the North American market much stronger than Europe or Latin America. Thursday's pending home sales report from the Realtors will be important.

Ford's European business. Ford warned recently that its European operations may show a second-quarter loss because of the slumping economy. The question on Wednesday will be how bad is the European business and how will that problem affect Ford's U.S. results.

Facebook's first quarterly report as a public company. The social-networking site reports its second-quarter results on Thursday. And what investors may focus in on is the revenue growth rate. First-quarter revenue was up 32.5% from a year earlier to $901 million, but year-over-year growth rates have been slipping. 

Big Oil's challenges in a slowing economy. Crude oil in New York is off 7.5% this year and was headed lower today. So was Brent crude. It's a function of crude oil's being priced in dollars. If the dollar is higher, crude will move lower. That may affect the guidance offered by Royal Dutch Shell (RDS.A) and Exxon on Thursday and Chevron on Friday.

The flight to safety. Many investors are pushing cash to Germany and U.S. government securities to be sure their money is safe. Some short-term yields of German securities are negative, meaning investors are paying for the safety.
28Comments
Jul 23, 2012 6:45AM
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Gooch41,

 

Gooch41,  I don't agree.  I will assume the person carrying a weapon, first knows how to use it. second I will assume that said person remains reasonably calm.  Both big assumptions.  How would a couple of off duty cops re-acted?  Or military?  All gun fights and combat are chaos.   Yes there is greater chance that more might havebeen hit.  But I assure you, but a few incoming rounds would have drew the shooters attention away from unarmed civilians, likely causing less casualties.  An early shot bring down the shooter (even without killing him), would have stopped much of the carnage.

 

In combat, it is better to be armed than unarmed.  Collateral casualties are always possible also. 

 

Ask yourself this...  Would you feel safer if uniformed officers responded or not?  You would feel safer and have less carnage with more police I am sure.   Think of armed civilians as plain clohes cops without all their training.   

Jul 23, 2012 9:28AM
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"Can violence still occur?  Sure, a variety of other weapons.  They just require that you're up close and personal.. gives the victim a chance to either run or defend themselves."

But all new laws are going to do is take away from the law abiders.  You said yourself, crazy / law breakers could care less what the laws are.  To take away the right to bare arms from society is to leave the criminals armed and the citizens defenseless.
Jul 23, 2012 7:51AM
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I still believe having someone armed and returning (drawing, supressing) his fire, would have lessened casualties.   I was taught that  if you suspect body armor aim for the legs arms or head.   I was also taught aimed fire is way more effective than sparying rounds.   Having been in combart decades ago, I think I would have reacted calmly, the instinct being to get to ground.  

 

However without  any opposition, you get maxiumum carnage.  Thank god the guy was not the smartest around for weapons selection.  Had he been trained or experienced the carnage would be far greater.  The 100 round clip jambing probably saved a dozen lives...

Jul 23, 2012 7:45AM
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I really hope this forum will not be discussing gun issues all day today....I would have thought that most would have had a fill over the weekend......

 

How about " The Open"? The "Big Easy" was a surprise and refreshing, Ernie Els has had a dry spell for a little while....And poor Scott just got into too much trouble.

Interesting finish.

Jul 23, 2012 5:33AM
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"In that theater, a rational person would be acting the same way if they had a gun or not.. not use it.  I would certainly not have used one if I was thinking clearly as it would induce panic in the shooter, confusion and panic in the movie goers.  However, if someone had a gun in there, I wouldn't expect them to act rationally, and I would expect a lot more people killed.  Not the least of which, the gun owner who puts themselves at risk of getting shot by responding police because they look like an accomplice."

I really am curious, regardless of your political persuasion, if you agree with this or not.

THUMBS UP - you agree that this is what you think you would have done if you were in that theater.

THUMBS DOWN - If you would have been in that theater and had a gun, you would have tried to use it.
Jul 23, 2012 8:34AM
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I know you said you were done, but one last thought, and not on guns specifically....

How do we not find a guy that is willing to plot and scheme and follow through with something this heinous as LEGALLY INSANE?  I see no other way something ike this happens.  No sane person does this.

So do we now protect this guy, knowing he's sick?

Jul 23, 2012 8:12AM
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I do agree with the return fire if possible ??

If I had been carrying a weapon?....Which would have been slim to none.

I would have went bunker mentality....Made myself small and tried to get off precise shots, after I had rapid fired 3-4 rounds.

I don't think the kid was a shooter...He was just spraying and shooting at the crowd.

For mass hysterical reaction and to see how many he could hit or hurt.

A mental case that would take years to figure out,

I would hope he is Federally charged an executed within a year. or less...

I'm done with this.

Jul 23, 2012 7:51AM
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People carry guns into theaters all the time, someplaces?

Probably just known as criminals, like other illegal places they carry them.

Gun laws are funny,idiotic and difficult to understand State to State.

Jul 23, 2012 7:47AM
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To bogey in like that had to sting.  I just can't imagine.  He played so well all week..... a shame.

But YES!!!  The Big Easy is one of the good guys!  Great to see him get another one!

4 under on the back nine on the final day of a major....... IMPRESSIVE!!!

Jul 23, 2012 9:34AM
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If every last crook and fraudster from Wall Street were thrown in jail, there wouldn't be 1 single person left. The end of Fraud Street!

 

Send in the bulldozers!

Jul 23, 2012 9:05AM
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Turn left and you'll be saved by a safety net!

 

Turn right and go off the fatal fiscal cliff!

 

<----- Democrats this way please!

 

All others, that way please! ----->

Jul 23, 2012 9:37AM
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The Dowtanic is sinking! Save the pets, but leave those stupid humans behind!
Jul 23, 2012 9:23AM
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I actually checked Bloomberg TV before I went to bed last night and saw everything coming out of Asia was negative..... I knew today was going to be a crapper.....

Guess you just can't keep livin off of borrowed money forever after all!

Jul 23, 2012 8:01AM
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Agreed POPS.  But the whole basis of my issue / question was if the law abiding / unsuspected theater goers had had someone amongst them that was armed.  We, as a society, have already decided this is not allowed.  So the rest of my discussion is moot.

I agree with all that MG said, but to get their you have to assume a "good guy" was willing to break the law to have the gun there in the first place.  So now I guess the debate (if it even needs to continue) should be about if that's right to not allow the guns in or not?

Jul 23, 2012 7:36AM
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And there in lies the rub, POPS.....

What I asked for initially, that got this whole convo started on Friday, apparently has already been deemed illegal.  Concealed carry or not, no law abiding citizen was allowed to have a gun in that theater, or any other in the country.  PERIOD.

So this wacko, and any other wacko for that matter, knows he has a "sitting duck" group of victims just waiting for him.  Scary when you think about it.

Jul 23, 2012 6:18AM
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Swaggs....Couldn't sleep last night ???
Jul 23, 2012 9:22AM
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Anyone that is a murderer,without just cause, is insane...They should all be put to sleep..

Only insane people are cold blooded killers; Insanity is not a defence, never should be.

Exceptions, There are a few crimes of passion, that would need a decision process.?

Jul 23, 2012 9:13AM
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At 9:11 A.M. a harbinger of probably a bad day...Getting a little tired of this...

Certainly over a 100 neg...close.

Jul 23, 2012 8:57AM
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U.S Postal Service,could miss a 5 Billion dollar payment to their pension fund?
Jul 23, 2012 7:23AM
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Thanks for the early tips Charley...Yeah, It doesn't look like it will be a good day.....

 

Swaggs.....Don't know why you have the tag-line...."regardless of your political persuasion." ??

Gun owning, shooting,hunting are an ideology; Not really Political..

I consider the question a Rock and a Hard Place..

First of all, We would be in a crowded theater, not knowing the lighting conditions?

I don't care for mucho,Machos, irregardless if Cop or a trained shooter, they get crazy sometimes.

We did not know at first, but found out later that he was prepared for combat...And he had several guns and all protective gear...A GAME CHANGER.

It would take a Glok or a big 40+ cal mag, hollow or armour pierce to take him down or knock him on his azz..

I have been trained,use to be a shooter and still do some hunting...

If I had been there with wife, I "probably would have panicked"..Got her down and hid, me on top.

 

We do not have any large caliber pistols at this time, but I have a 44 mag long rifle and some 12 ga.

semi autos, I know I could have knocked him down, kill maybe not?? I would have tried.

You don't carry them into theaters..

I do agree with MG and bullets being thrown at him would probably have changed things.

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