EmailThe market hit its trifecta Monday by rebounding for a third consecutive session. It was a very positive day, as the major U.S. averages opened stronger than futures predicted, absorbed a quick pullback, and then trended upward through the remainder of the session, closing at highs.
Unfortunately, it will take quite a bit for the market to hit the superfecta Tuesday, as futures currently point to a sharply lower open.
Europe -- specifically the eurozone -- is in focus.
Germany released its second quarter GDP report earlier this morning, and the country saw growth of just 0.1%. The euro immediately sold off against the dollar while European markets opened lower an hour later.
The weak growth figure fueled concerns of a global economic slowdown and brought up questions about how the country will be able to bankroll struggling eurozone economies.
Germany's GDP release comes ahead of today's highly-anticipated meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss possible measures to contain the eurozone debt crisis. The two leaders will hold a press conference around midday following their meeting.
Economic data in the U.S. did not alter this morning's negative sentiment.
Housing starts came in at 604,000 in July, slightly weaker than the 608,000 Briefing.com consensus. Building permits came in at 597,000, against expectations of 606,000. Both data points also saw negative revisions in June.
The July figure for starts was actually held up by volatile multi-family structures. After surging in June, single-family starts fell back to their previous three-month average. The surge in June allowed units under construction to tick higher for the first time in five years, but that figure resumed its decline in July, once again hitting a record low.
There is one more economic release on today's calendar, as industrial production and capacity utilization will come out at 9:15 a.m. ET. The Briefing.com consensus expects industrial production will grow 0.4% in July and capacity utilization will come in at 77.0%.
Switching to earnings, bellwether retailers continue to report this week, but the results are having little impact on futures.
Home Depot (HD) and Wal-Mart (WMT) beat expectations on the top and bottom lines in their fiscal second quarters, while also raising fiscal 2012 EPS guidance ranges. Shares of HD and WMT are trading about 3% higher premarket.
Dell (DELL) will report after the close.
--David M. Campione, CFA
Dave is an analyst for Briefing Research, Briefing.com's institutional research service. To request a free trial, please email researchsales@briefing.com.
