Stocks Steady on Concern Over Debt Talk, Banks
U.S. dollar banknotes in various denominations. Photographer: Seokyong Lee/Bloomberg
July 15 (Bloomberg) -- Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, discusses possible reaction by financial markets to corporate earnings and the outlook for bipartisan talks to raise the U.S. debt limit. Luschini, speaking with Betty Liu on Bloomberg Television's "In the Loop," also talks about the prospects of another round of quantitative easing by the Federal Reserve. (Source: Bloomberg)
July 14 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker talks with Bloomberg's Maryam Nemazee about negotiations between lawmakers on whether to raise the U.S. debt ceiling. Volcker says the U.S. may miss paying some bills on time due to the political stalemate. Volcker also discusses monetary policy, U.S. regulation of the financial industry and Europe's sovereign debt crisis. (Source: Bloomberg)
July 15 (Bloomberg) -- Scott Kessler, head of technology sector equity research at Standard & Poor's, talks about Google Inc.'s second-quarter sales reported yesterday and outlook for the largest Internet-search company. Sales, excluding revenue passed on to partner sites, rose to $6.92 billion, which topped the $6.57 billion average estimate of analysts surveyed by Bloomberg. Kessler speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
July 14 (Bloomberg) -- Mark Dow, portfolio manager at Pharo Management LLC, and Nicholas Colas, chief market strategist at BNY ConvergEx Group LLC, talk about negotiations between lawmakers on the U.S. debt limit. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)
July 15 (Bloomberg) -- Jason Brady, a managing director at Thornburg Investment Management in Santa Fe, New Mexico, talks about corporate bonds and Treasuries. Brady also discusses Federal Reserve monetary policy, the negotiations between the White House and congressional leaders to raise the debt ceiling, and Asian economies and financial markets. He speaks with John Dawson on Bloomberg Television's "First Up." (Source: Bloomberg)
Google Inc. signage is displayed at the company's headquarters in Mountain View, California, U.S.. Google Inc. jumped in extended trading after the owner of the world’s largest Internet-search engine reported sales and profit that topped analysts’ estimates. Photographer: Tony Avelar/Bloomberg
Stocks were little changed on concern negotiations to raise the U.S. debt ceiling are failing to progress and a gauge of American consumer confidence missed forecasts. The cost of insuring government debt rose to a record as investors awaited results of European bank stress tests.
The Stoxx Europe 600 Index lost 0.4 percent at 10:47 a.m. in New York, after declines of as much as 0.8 percent. The S&P 500 rose 0.2 percent after gaining as much as 0.7 percent earlier. The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments jumped as much as 14 basis points to an all-time high of 295. Greek two-year bonds tumbled, driving the yield to a record 33 percent, and the 10-year German bond yield fell seven basis points. Cotton sank 4.8 percent.
U.S. House Speaker John Boehner, a Republican from Ohio, told reporters his party wouldn’t accept any tax increases as they work with President Barack Obama on a deal to lower deficits and possibly raise the U.S. debt ceiling. The European Banking Authority will publish the results today of stress tests on 91 lenders, detailing their holdings in debt-ridden nations such as Greece and Italy. Confidence among U.S. consumers unexpectedly fell in July to the lowest level in more than two years.
“Investors are faced with this really uncertain backdrop for the foreseeable future,” New York-based Andrew Goldberg, who helps oversee $544 billion in assets as market strategist at JPMorgan Funds, said in a telephone interview. “The market is waiting for some kind of compromise on the debt ceiling. Both parties appear willing to make concessions, it’s just the tax increase issue that the Republicans refuse to budge on.”
Trimming Weekly Losses
Stocks fluctuated between gains and losses in Europe and the U.S. The Stoxx 600 has fallen more than 2 percent this week, while the S&P 500 is trimming its biggest weekly decline since August, falling 2.6 percent through yesterday.
Google, owner of the Internet’s most popular search engine, rallied 12 percent after saying quarterly sales were $6.92 billion, 5.3 percent above analyst estimates. Citigroup, the third biggest U.S. bank, climbed 2.3 percent after profit rose 25 percent, beating forecasts.
To contact the reporter on this story: Jeff Sutherland in New York at jsutherlan13@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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