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Profit Loss

When two big banks reported profit loss for the second quarter, stocks started falling. Bank of America and Citigroup both reported a loss in profit for the second quarter, but analysts predicted both financial institutions would report a worse loss. Out of the two banks Citigroup saw worse results than BoA; Citi reported earnings of $2.7 billion, or $0.09 cents per share. Profits were down from $4.28 billion, or $0.49 cents per share they earned a year ago. Total revenue net of interest expense fell to $22.1 billion from $30 billion; analysts were expecting $22.4 billion. Loan-loss provisions were $6.67 billion in the second quarter, down from $8.62 billion in the first quarter. Bank of America said second-quarter earnings fell to $3.12 billion or $0.28 cents per share prior to preferred dividends. That is down from the $3.22 billion, or $0.33 cents per share the company earned in the same period a year ago. Total revenue net of interest expense was $29.2 billion, down from $32.8 billion; analysts were expecting $29.6 billion. These two earnings reports along with today’s report on consumer sentiment sent stocks falling triple digits. University of Michigan’s consumer sentiment index fell to 66.5 in July from 76 in late June; analysts’ were expecting it to only fall to 74.5. Dow Jones Industrial was down over 200 points at one point today; the selloff lasted the whole session. Trading was choppy in the afternoon, with an hour left in the trading week; the Dow was still down 268 points. Commodity prices fell; gold fell $20.10 to $1,188.00 and crude oil fell $0.61 to $76.01 per barrel.

Economic data released today:

Michigan Consumer Sentiment Index:
University of Michigan Mid-July Sentiment 66.5; June 76.0; University of Michigan Mid-July Expectations 60.6; June 69.8; University of Michigan 12-Month Inflation Forecast rose 2.9%; June rose 2.8%; University of Michigan 5-Year Inflation Forecast rose 2.9%; June rose 2.8%; University of Michigan Mid-July Current Index 75.5; June 85.6.

At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) shed 261.26 points, EOD 10,098.05
NYSE (New York Stock Exchange) shed 207.30, EOD 6,709.51
National Association of Securities Dealers Automated Quotations (NASDAQ) shed 69.38 points, EOD 2,179.70
S&P 500 (SPX) shed 31.48 point, EOD 1,065.00
BEL 20 (BEL20) shed 52.3 points, EOD 2,442.75
CAC 40 (CAC40) shed 81.66 points, EOD 3,500.16
FTSE100 (UKX100) shed 52.44 points, EOD 5,158.85
NIKKEI 225 (NIK/O) shed 277.41 points, EOD 9,408.36

World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7736 to U.S. Dollars 1.2900
Japanese Yen 86.5950 to U.S. Dollars 0.0115
British Pound 0.6535 to U.S. Dollars 1.5300
Canadian Dollar 1.0529 to U.S. Dollars 0.9512
Swiss Franc 1.0523 to U.S. Dollars 0.9582

COMMODITY MARKETS:
Energy Sector – Nymex:
Light Crude (August 10) shed $0.61, EOD $76.01 per barrel ($US per barrel)
Heating Oil (August 10) shed $0.00, EOD $2.01 a gallon ($US per gallon)
Natural Gas (August 10) shed $0.06, EOD $4.52 per million BTU ($US per mmbtu.)
Unleaded Gas (August 10) shed $0.01, EOD $2.04 gallon ($US per gallon)

Metals Markets – Comex:
Gold (July 10) shed $20.10, EOD $1,188.00 ($US per Troy ounce)
Silver (July 10) shed $0.57, EOD $17.77 ($US per Troy ounce)
Platinum (July 10) shed $21.50, EOD $1,508.40 ($US per Troy ounce)
Copper (July 10) shed $0.08, EOD $2.92 ($US per pound)

Livestock and Meat Markets – Chicago Mercantile Exchange (cents per lb.):
Lean Hogs (August 10) gain $0.87, EOD $81.70
Pork Bellies (July 10) gain $0.20, EOD $104.40
Live Cattle (August 10) shed $0.12, EOD $92.27
Feeder Cattle (August 10) shed $0.27, EOD $113.10