Thursday, July 16, 2009

Evening Briefing for July 16th

* MARKET THEMES FOR THURSDAY: The high momentum rise continued, fueled by positive earnings news, as averages challenged--and in some cases pierced--their prior bull market highs. The move was accompanied by a weaker U.S. dollar and firmer oil prices. We had 708 new 65-day highs and 73 lows, well off the June peak, but considerably stronger in the past several days. Importantly, we saw new highs in several advance-decline lines, including NYSE common stocks, the S&P 500 Index, and the NASDAQ 100 Index. This strength supports the notion that the recent weakness was a correction in an ongoing bull market.

* OVERSEAS/OVERNIGHT NUMBERS: 4:00 AM CT - EU, construction, foreign trade balance; 6:00 AM CT - Canada, CPI; 7:30 AM CT - Canada, Leading economic indicators.



-- Foreclosures continue to set records;

-- Weak investor sentiment and more good reading;

-- Economic implications of Fed's exit strategy;

-- What TIPS and Treasury yields tell us about inflation;

-- "Mancession" and where unemployment is coming from;

-- Questioning a housing bottom.