Buckle Up! Markets Start To Fall, US Futures Loose Strength, The Markets Are Facing Major Headwinds…. Expect More Market Volatility This Year

FTSE 100 /quotes/zigman/3173262 6,234 -11 0.18%
DAX /quotes/zigman/2380246 7,965 -31 0.38%
CAC 40 /quotes/zigman/3173214 3,737 -25 0.67%
FTSE MIB /quotes/zigman/1482176 15,250 -192 1.25%
IBEX 35 /quotes/zigman/2759620 7,773 -70 0.90%
Stoxx 600 /quotes/zigman/2380150 285 -1 0.50%


Europe stocks turn lower, U.S. futures pare gains


The markets are facing major headwinds

The stock market has staged a relief rally over the last three days as various Fed officials have tried to walk back Bernanke’s statement that implied a tightening of monetary policy.  In addition the first quarter GDP revision that indicated a slower economy gave investors hope that a Fed withdrawal of stimulus would occur later rather than sooner.  Adding to the mix was China’s injection of funds to various lending institutions in response to soaring short-term lending rates.  However, we believe that a slower U.S. economy is nothing to cheer about, while China’s economic and financial problems are too deep-seated for any instant cure.


Although others talk about an improving U.S. economy, it is not happening.  The second revision of first quarter GDP reduced the annualized growth rate to only 1.8% from a previously reported 2.4%.  Although the data in the report is now a few months old, it signifies that the economy entered the current quarter with slackening momentum that has continued.  Most of the reduced growth rate was a result of consumer spending growth dropping to 2.6% from the 3.4% reported in the first revision. Moreover, final domestic demand grew a meager 1.3%, compared to the prior estimate of 1.9%.  This is a distinct slowdown from the average growth of about 2% that had been the case since mid-2010.
Read more: http://comstockfunds.com/default.aspx/act/newsletter.aspx/category/MarketCommentary/….

zerohedge‏@zerohedge50 min
Greek 10Y yield rises back over 11%

zerohedge‏@zerohedge1 h
French Debt Agency Cancels Bond Auction Scheduled for Aug. 1

zerohedge‏@zerohedge1 h

zerohedge‏@zerohedge2 h
Italian June economic sentiment falls to 76.1 from 80.2


U.S. taxable bond funds see heavy ouflows

Article Continues Below

U.S. investors withdrew $8.62 billion from taxable bond funds in the week ended June 26, and aggregate outflows from the group over the past four weeks was the heaviest since October 2008, according to data from Thomson Reuters’ Lipper service. The past four weeks has seen net outflows of $23.7 billion from taxable bond funds. Fears that the Federal Reserve will taper its bond-buying program served to drive up yields on 10-year bonds 10_YEAR -0.53% .



Brace for More Market Volatility in the Second Half of 2013

Investors, buckle your seat belts. Markets in the second half could be driven by more volatility, though most strategists expect equities to ultimately end the year higher than their current levels.

“The recent volatility in stocks and bonds will likely be with us for the foreseeable future (at least a few months),” wrote strategists Stuart Freeman and Scott Wren of Wells Fargo, which has a year-end target of 1,650 to 1,700 on the S&P 500. “But we continue to believe any pullback is an opportunity to add to stocks in sectors sensitive to a continuation of the economic recovery. Our recommendation is to put money to work now.”

Strategists expect markets to continue zigzagging near-term, as investors struggle to adjust in the face of a rising yield environment and grapple with the reality that the Federal Reserve could begin to wind down its $85 billion a month bond-buying program before 2014.

(Read More‘Correction Not Over’ in Market: Pro)

“We’re in for a long-range-bound summer,” warned Tim Biggam, chief market strategist at MoneyBlock. “Volume is still anemic, and the catalyst that drove us to these levels [the Fed] may not be there anymore.”


Russian Market‏@russian_market3 min
Blackberry -16.06%

BlackBerry lost $84 million last quarter $BBRY

BlackBerry’s earnings for last quarter are out.


We’re digging through the numbers now, but here are some highlights:

  • $3.1 billion in revenue
  • Loss of $0.13 per share (Lost a total of $84 million)
  • 6.8 million smartphones shipped
  • “Approximately” 100,000 PlayBook tablets shipped

Read more: http://www.businessinsider.com/blackberry-earnings-2013-6#ixzz2XVebQksI



Follow IWB on Facebook and Twitter