Alcoa Inc. (AA), which kicks off the Q-2 earnings season when it reports results next week, climbed 2.1% as metal prices gained in London. Goldman Sachs Group Inc. climbed after JPMorgan Chase & Co. upgraded the shares to “overweight.” Equities briefly erased gains in afternoon trading after a slowdown in service industry growth added to concern the economic recovery is weakening.

The S&P 500 climbed 0.5% to 1,028.06 at 4 p.m. in New York after rising 2% in the 1st hour of trading. The DJIA gained 57.14 pts, or 0.6%, to close at 9,743.62 snapping a 7 day losing streak, its longest since the financial crisis in Y 2008.  The Russell 2000 fell from a 2.4% gain to a 1.5% loss on the day.

Stocks are very oversold in here and the pessimism is wide spread, and that is likely to inspire a short term rally IMO.

The S&P 500 fell 16% off of this year’s high on April 23 through July 2 on a perceived sovereign-debt crisis in Europe and speculation that China’s will move to slow the World’s largest emerging economy and dampen Global growth.

The April/July retrace came on analysts raised earnings estimates for US companies suggesting that they are growing at the fastest rate since Y 2004.

Profit for S&P 500 companies will likely jump 34% in Y 2010, compared with a projected gain of 27% on March 29, according to more than 8,000 reported estimates.

The Service Sector in the U.S expanded in June at a slower pace, indicating the economy started to cool entering the 2nd  half.

The Institute for Supply Management’s index of non- manufacturing businesses, which covers about 90% of the economy, fell to 53.8 from 55.4 in May. The median forecast of 59 economists were looking for a decline to 55. Note: Readings above 50 signal expansion.

Leading Global & Sector ETFs:

iShares Taiwan- EWT +4.25%, iShares Spain- EWP +4.0%, iShares Israel- EIS +3.75%, coal- KOL +3.0%, solar power- TAN +2.75%, wind energy- FAN +2.50%, iShares S Korea- EWY +2.50%, iShares Germany- EWG +2.25%, iShares Japan- EWJ +2.0%, iShares S Africa- EZA +2.0%, base metals- DBB +2.0%

Soft commodities (-1.8%) led the decline in the CRB Commodity Index today, which lost 0.3% on the day.

Sept coffee was the day’s largest decliner after it closed off 4.1% to US$1.58 lb, followed by a 2.9% sell off in Sept Orange Juice futures, which closed at US$1.47 lb.

August Crude Oil gave back some early gains to finish lower by 0.2% to US$71.98 bbl, while August Nat Gas futures closed minus 0.1% to US$4.68. Nat Gas traded higher this morning, helped by Hot weather across the USA.

It was a quiet session in the gold pit, August Gold futures finished lower by 1.4% to US$1192.80 oz. and September Silver closed higher by 0.3% to US$17.842 oz.

Advancing Sectors: Utilities (+1.2%), Energy (+1.1%), Tech (+0.8%), Financials (+0.6%), Consumer Staples (+0.5%), Health Care (+0.5%), Telecom (+0.2%), Industrials (+0.1%), Materials (+0.1%)

Declining Sectors: (None)

Unchanged: Consumer Discretionary

                                   US Market Indexes Technical Analysis

Date	Symbol	Price	Technical Analysis	Support	Resistance
Jul-02-2010	QQQQ	42.47	Bearish (-0.36)	???	42.62
Jul-06-2010	DIA	97.45	Bearish (-0.39)	???	98.26
Jul-06-2010	SPY	102.87	Bearish (-0.37)	???	103.47

 

US stocks gained, with the S&P 500 rising off of a 10 month low and snapping a 7 day losing streak, on speculation the earnings growth will help equities rebound from their lowest valuations since the Bull market began on March 9, 2009.Alcoa Inc. (AA), which kicks off the Q-2 earnings season when it reports results next week, climbed 2.1% as metal prices gained in London. Goldman Sachs Group Inc. climbed after JPMorgan Chase & Co. upgraded the shares to “overweight.” Equities briefly erased gains in afternoon trading after a slowdown in service industry growth added to concern the economic recovery is weakening.

The S&P 500 climbed 0.5% to 1,028.06 at 4 p.m. in New York after rising 2% in the 1st hour of trading. The DJIA gained 57.14 pts, or 0.6%, to close at 9,743.62 snapping a 7 day losing streak, its longest since the financial crisis in Y 2008.  The Russell 2000 fell from a 2.4% gain to a 1.5% loss on the day.

Stocks are very oversold in here and the pessimism is wide spread, and that is likely to inspire a short term rally IMO.

The S&P 500 fell 16% off of this year’s high on April 23 through July 2 on a perceived sovereign-debt crisis in Europe and speculation that China’s will move to slow the World’s largest emerging economy and dampen Global growth.

The April/July retrace came on analysts raised earnings estimates for US companies suggesting that they are growing at the fastest rate since Y 2004.

Profit for S&P 500 companies will likely jump 34% in Y 2010, compared with a projected gain of 27% on March 29, according to more than 8,000 reported estimates.

The Service Sector in the U.S expanded in June at a slower pace, indicating the economy started to cool entering the 2nd  half.

The Institute for Supply Management’s index of non- manufacturing businesses, which covers about 90% of the economy, fell to 53.8 from 55.4 in May. The median forecast of 59 economists were looking for a decline to 55. Note: Readings above 50 signal expansion.

Leading Global & Sector ETFs:

iShares Taiwan- EWT +4.25%, iShares Spain- EWP +4.0%, iShares Israel- EIS +3.75%, coal- KOL +3.0%, solar power- TAN +2.75%, wind energy- FAN +2.50%, iShares S Korea- EWY +2.50%, iShares Germany- EWG +2.25%, iShares Japan- EWJ +2.0%, iShares S Africa- EZA +2.0%, base metals- DBB +2.0%

Soft commodities (-1.8%) led the decline in the CRB Commodity Index today, which lost 0.3% on the day.

Sept coffee was the day’s largest decliner after it closed off 4.1% to US$1.58 lb, followed by a 2.9% sell off in Sept Orange Juice futures, which closed at US$1.47 lb.

August Crude Oil gave back some early gains to finish lower by 0.2% to US$71.98 bbl, while August Nat Gas futures closed minus 0.1% to US$4.68. Nat Gas traded higher this morning, helped by Hot weather across the USA.

It was a quiet session in the gold pit, August Gold futures finished lower by 1.4% to US$1192.80 oz. and September Silver closed higher by 0.3% to US$17.842 oz.

Advancing Sectors: Utilities (+1.2%), Energy (+1.1%), Tech (+0.8%), Financials (+0.6%), Consumer Staples (+0.5%), Health Care (+0.5%), Telecom (+0.2%), Industrials (+0.1%), Materials (+0.1%)

Declining Sectors: (None)

Unchanged: Consumer Discretionary

                                   US Market Indexes Technical Analysis

Date	Symbol	Price	Technical Analysis	Support	Resistance
Jul-02-2010	QQQQ	42.47	Bearish (-0.36)	???	42.62
Jul-06-2010	DIA	97.45	Bearish (-0.39)	???	98.26
Jul-06-2010	SPY	102.87	Bearish (-0.37)	???	103.47