The EU wants two large English banks to sell off branches to shrink them because they have become too large to allow to fail. The English are up in arms because the socialists were planning to nationalize them to get their bailout money back. The early EU stock market turmoil caused a late Asian market selloff with the exception of China which is poised now to possibly break out and hit a new high.
The European sell-off today also caused US futures to drop. Usually it is the other way around.
Yesterday's news was good but profit taking reduced the market gains.
Ford showed free enterprise could still turn a profit… almost $1 billion in fact last quarter.
The Institute for Supply Management reported on manufacturing activity Monday. — PMI at 55.7% up from 52.6% last month. It shows that manufacturing continues to expand.
http://www.martincapital.com/chart-pgs/Pg_ism.htm
Today Nov. 3
The government will release data on September factory orders in the morning.
Officials gather for the meeting of the central bank's Federal Open Market Committee, which sets interest-rate policy, on Tuesday and Wednesday. The FOMC is not expected to move interest rates at this time.
Kraft is expected to post wider profit margins and possibly even exceed forecasts. The food company's earnings will be closely watched since its bid for Cadbury is in part in stock and it needs Cadbury shareholders to value its shares.
Hartford Financial Services Group reports
Wednesday Nov 4
Cisco reports Wednesday and is expected to post lower profit and sales but also affirm the anticipated comeback in corporate demand for high-tech products and services.
Jobs report AM
ISM index AM
FOMC PM
Thursday Nov 5 AM
Major retailers who will report same-store sales for October may benefit from the recovering economy as well as from cool weather that sparks sales of fall and winter clothing.
Unemployment claims AM
The government will release data on third-quarter productivity AM
Friday, Nov 6 AM
Investors will wait anxiously all week for a labor report to be released 8:30am Friday that will likely show U.S. unemployment topped 10% during October.
More insurers should report similar results to last week's reports saying business and rallying stock markets put an end to big investment losses. Hartford Financial Services Group reports Tuesday and Allstate which reports Wednesday are expected to swing to a profit, while Prudential Financial results Wednesday are expected to increase from a year earlier. Health insurers Humana and Cigna Corp. will report Monday and Thursday, respectively.
Market forces November 3
We expect the market to bounce soon. Profit taking continues to be advisable on advances and purchases should be made on declines each time we bottom. This last bottom was a little deeper and we appear to be entering a slower growth phase. The market appreciation rate earlier this year could not be sustained. The new rate possibly will allow the bull market to last a little longer. We expect the market to rally again soon but if a new high is not established we expect a few months of declines.
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Asian markets were mixed last night; China up 1.2%, Hong Kong down -1.8%, India down -3.1% again, Japan down -2.3%again, and Seoul down -0.6%.
European markets are down with the average in a range from -1.7% to -2.1% this morning about half way through their day.
US pre-market futures are down -0.8% today at 7:00 AM EST with perhaps another buying opportunity before the next monthly rally starts.
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