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Spanish Yields Looking Even Worse, US Earnings Weigh on Markets   
Tue, 24 Jul 2012 11:09 AM EST/04:09 PM GMT
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DJIA -86 S&P 500 -7 Nasdaq -13

Economic Data
- (US) ICSC/GS weekly chain store sales w/e Jul 21st: +1.0% w/w; +3.3% y/y
- (HU) Hungary Central Bank leaves Base Rate unchanged at 7.00%; as expected
- (CA) Canada May Retail Sales M/M: 0.3% v 0.5%e; Retail Sales Less Autos M/M: 0.5% v 0.1%e
- (US) Redbook Retail Sales w/e Jul 21st: +1.3% y/y; Jul MTD: +1.7% y/y Jul MTD: -1.3% m/m
- (US) July Preliminary Markit PMI Manufacturing: 51.8 v 52.0e (lowest since Dec 2010)
- (EU) ECB Weekly Forex Reserves w/e July 20th: €242.9B v €245.1B prior
- (BR) Brazil Jun Current Account: -$4.4B v -$4.6Be; Foreign Direct Investment (FDI):$5.8B v $5.8Be
- (US) July Richmond Fed Manufacturing Index: -17 v -1e
- (US) May House Price Index M/M: 0.8% v 0.4%e

- Chatter made the rounds overnight that Spain may be considering a full bailout if it can't get ECB cover for its rapidly escalating bond yields. In the meantime, European officials scrambled to tamp down talk of a Greek EMU exit. Peripheral yields are at or near all-time highs, while the Italian and Spanish equity markets are plunging to record low levels, further heightening tension in Europe. In the US, UPS and several other major companies had poor quarterly reports. The July Richmond Fed Manufacturing Index was very weak, prompting PIMCO's Bill Gross to call the data disastrous as it implies GDP is moving closer to 0%. Meanwhile the new Markit preliminary PMI index sugges ...
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