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00:11 Friday 16 July, 2010

Airtime: Thurs. Jul. 15 2010 | 11:14 PM ET

Debating whether investors should focus on earnings or the economy, with Fred Dickson, D.A. Davidson and Ivory Johnson, Scarborough Capital Management.

00:02 Friday 16 July, 2010

Stocks fell, halting a seven-day rally for the Dow Jones Industrial Average, while oil slipped and Treasuries rose as a slowdown in China’s economic expansion and weakening U.S. manufacturing growth overshadowed better- than-estimated earnings.

The Dow dropped 73.56 points, or 0.7 percent, to 10,293.16 to snap its longest streak of gains in four months. China’s Shanghai Composite Index tumbled 1.9 percent, the most in two weeks. Oil retreated below $76 a barrel and the 2-year Treasury yield dropped to a record low of 0.58 percent. The euro appreciated to a two-month high versus the dollar and Spanish bonds climbed after a sale of 15-year debt.

All 10 industry groups in the S&P 500 dropped as concern the global economic rebound is slowing overshadowed better-than- estimated earnings at JPMorgan Chase & Co. Treasuries rallied, sending the 10-year yield below 3 percent, as Federal Reserve data showed manufacturing growth trailed economists’ estimates in the New York and Philadelphia regions in July and production dropped nationwide last month.

21:49 Thursday 15 July, 2010

We’re in a long term secular bear market, Reva Shakkotai from RBC Wealth Management told CNBC, ahead of JP Morgan’s expected earnings announcement.

21:44 Thursday 15 July, 2010

European stocks rose on Thursday, reversing earlier losses, as strong results from U.S. banking giant J.P. Morgan Chase & Co. and a successful Spanish bond auction offset worries about a slowdown in global economic growth.

The Stoxx Europe 600 gained 0.1% to 256.10.

After trading lower for most of the session, the index turned higher after J.P. Morgan said its quarterly profit soared 76% to $4.8 billion, or $1.09 a share.

21:38 Thursday 15 July, 2010

U.S. index futures gained and stocks rebounded after JPMorgan Chase & Co.’s earnings beat analysts’ estimates and Spain’s bond sale drew increased demand. The euro strengthened to a two-month high against the dollar.

Futures on the Standard & Poor’s 500 Index climbed 0.6 percent as of 8:09 a.m. in New York. The MSCI World Index of 24 developed countries rose 0.2 percent after losing as much as 0.4 percent. Greek lenders rallied after Piraeus Bank SA offered to buy stakes in two banks. The euro appreciated 0.6 percent to $1.2824 and Spanish 10-year government bond yields fell nine basis points to 4.66 percent. Oil advanced 0.3 percent.

JPMorgan, the second-biggest U.S. bank by assets, said profit rose 76 percent, helping offset concerns that a slowing global economic recovery will erode earnings. Spain sold the full 3 billion euros ($3.84 billion) of 15-year bonds it planned to issue, attracting bids for 2.57 times the securities on offer, compared with 1.79 at an April auction. Stocks fell earlier after a government report showed China’s growth ebbed in the second quarter by more than economists predicted.

15:06 Thursday 15 July, 2010

As China's growth slows to 10.3% in Q2, Shane Oliver, head of investment strategy & chief economist, AMP Capital Investors, says Beijing is getting what it wanted. He tells CNBC's Karen Tso, Bernard Lo & Adam Bakthiar that there is no need for further aggressive tightening measures.

15:00 Thursday 15 July, 2010

The Bank of Japan kept interest rates unchanged and predicted growth in the world’s second- largest economy will slow next year as fiscal stimulus evaporates worldwide and overseas demand loses steam.

Policy makers raised their growth forecast for the year ending March 2011 to 2.6 percent from 1.8 percent estimated in April, while cutting next year’s to 1.9 percent from 2 percent, the central bank said in a statement today in Tokyo. The board held the benchmark overnight lending rate at 0.1 percent.

“The upward revision of this fiscal year’s growth doesn’t necessarily mean the BOJ is becoming more confident about a self-sustaining recovery, given that downside risks from Europe and the U.S. are mounting,” Seiji Shiraishi, chief economist at HSBC Securities Japan Ltd. in Tokyo, said before the announcement. “It’s becoming more likely that the Japanese economy will slow or stagnate later this fiscal year.”

14:56 Thursday 15 July, 2010

Asian stocks declined from a three- week high and commodities fell after the Federal Reserve cut its growth forecast, U.S. retail sales declined and China’s economic growth eased. The yen rose against all of its major counterparts.

The MSCI Asia Pacific Index lost 0.7 percent to 116.85 at 2:23 p.m. in Tokyo. Copper fell 0.7 percent and crude oil slid 0.3 percent. Standard & Poor’s 500 Index futures rose 0.1 percent after the index was little changed yesterday.

The Federal Reserve cut its central forecast for growth this year to a range of 3-to-3.5 percent from 3.2-to-3.7 percent, and sales at U.S. retailers dropped for a second month, falling more than economists estimated. Economic growth in China slowed to 10.3 percent in the second quarter from 11.9 percent in January-March after the government succeeded in tempering credit, investment spending and property speculation.

11:57 Thursday 15 July, 2010

By the end of the year, Don Straszheim, senior MD & head of China research at ISI Group, forecasts growth in China will fall towards 7%. He tells CNBC's Martin Soong, Karen Tso and Sri Jegarajah about that he is more worried about slowing growth than inflation pressures.

11:49 Thursday 15 July, 2010

China’s economic growth eased to 11.1 percent in the first half after the government succeeded in tempering credit expansion, investment spending and property speculation.

The pace compares with an 11.9 percent gain in January- March from a year earlier. Inflation cooled to 2.9 percent in June, the statistics bureau also reported in Beijing today. Industrial output rose a less-than-estimated 13.7 percent.

The figures signal a diminishing risk of economic overheating, and give Premier Wen Jiabao more room to scale back restrictions on bank lending in coming months. A deeper downturn in the nation forecast to account for one third of global growth this year would compound risks for a world recovery already clouded by European budget cuts and limited American job gains.

11:43 Thursday 15 July, 2010

The yen pared gains as Chinese data showed inflation slowed, easing concern the nation will take more measures to keep its economy from overheating.

Japan’s currency traded at 112.71 per euro as of 11:18 a.m. in Tokyo from as strong as 112.06 earlier. The yen was at 88.36 against the dollar from as high as 88.11.

07:57 Thursday 15 July, 2010

Forget our earnings, China's data tonight will set the tone for markets, with Richard Kang, Emerging Global Shares CIO.

07:53 Thursday 15 July, 2010

U.S. stocks closed with slight gains Wednesday, with the Dow industrials just managing to extend their recent winning streak, as an upbeat forecast from Intel Corp. vied with more disconcerting views on the U.S. economy from retailers and the Federal Reserve.

The Dow Jones Industrial Average ended up 3.7 points, or 0.04%, to 10,366.72 for its seventh straight session of gains. Out of 30 components, 14 ended higher .

07:47 Thursday 15 July, 2010

The International Monetary Fund said Japan’s plan to balance its budget in 10 years would be more credible if the government gave specifics on how it will boost revenue, including details on a sales tax increase.

Prime Minister Naoto Kan’s fiscal strategy outlined last month “will only become fully credible once details of the necessary revenue measures are agreed on including the timing and scale of a consumption tax increase,” the IMF staff wrote in a supplement to its annual review of Japan’s economy.

Kan, who took office five weeks ago, stoked voter resentment by calling for a debate on whether to raise the 5 percent sales tax and lost control of parliament’s upper house in July 11 elections. The IMF report recommended a “modest” increase of the sales levy as part of fiscal adjustments.

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