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inthemoneystock (< 20)

Markets Flatline As Eyes Focus On Europe



July 12, 2011 – Comments (1) | RELATED TICKERS: SPY , GOOGL , AA

The markets are holding their breath today as all eyes continue to be on Europe. Will Italy continue in free fall? Will they need a mega bailout? Italy is one of the largest economies in Europe and a much bigger mess to clean up. The only positive with Italy is that the Italian banks hold most of the countries debt. This means it is slightly more contained than Greece, however, many times the size. 

With the markets pausing, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.05, +0.08 (+0.06%). The Euro versus the Dollar is near the flat line as well. Alcoa Inc. (NYSE:AA) reported earnings yesterday after the market closed. These earnings were essentially in line with expectations. The stock is flat on the day. Later this week, major earnings reports from some of the banks and Google Inc. (NASDAQ:GOOG) will be a major focus of Wall Street.

Wall Street is also focusing on the debt ceiling talks, though this is secondary to earnings and Europe. As of now the market has little fear an agreement will not be reached to raise the debt ceiling.

Gareth Soloway

1 Comments – Post Your Own

#1) On July 12, 2011 at 12:54 PM, davejh23 (< 20) wrote:

Today's shocker for me is Cisco...the stock is up big, more than erasing yesterday's decline, on news that planned layoffs will likely be double previous estimates.  Sure, this may be good for future profitability, but it's a clear sign of distress as well. 

Another shocker that I just read:  The Federal Reserve Bank of Cleveland is projecting GDP growth of just 1.1% over the next year (through June 2012)...less than half the Federal Reserve's current stated estimates.  Analysts still have high hopes for the second half and into 2012, so markets will not likely react well if the economy continues to weaken.

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