Market Happenings for Thursday, July 05, 2012 (Big Day for Banks)

Premarket, futures are down. Gainers this morning include PBI, AN, ROST, S and CELG while losers include TGT, FTR, AMD, STX and WAG.

The Market

Today has been a big day for central bank intervention. The European Central Bank lowered its key interest rate by a quarter percentage point to 0.75%. Then the Bank of England decided to flood the market with British pounds through quantitative easing, increasing asset purchases by £50 billion ($78.1 billion). Top if off with the People’s Bank of China also cutting several key interest rates, bringing its lending rate down 0.31 percentage point to 6%.

Today, Spain sold €3 billion ($3.8 billion) in 3- and 10-year bonds, its first auction since last week’s eurozone summit. Yields on the 10-year bond moved up to 6.54% but stayed below peak levels hit in June.

First-time unemployment claims for the week ending June 30 came in at 374,000, down 14,000 from the prior week and were just a bit below economists’ expectations.

Payroll-processing firm Automatic Data Processing said U.S. private-sector jobs rose by 176,000 in June, above expectations.

The ADP report could raise expectations of Friday’s government jobs report for June with analysts expecting that the U.S. economy added just 80,000 jobs last month.

Numbers for planned job cuts fell in June to a 13-month low of 37,551 job cuts which is lower than last month’s numbers and 9.4% below what it was in June last year.

European stocks were slightly higher in afternoon trading and Asian markets ended mixed

Oh, and the euro is below $1.24 this morning.

The national average price of gasoline is up two-tenths of a cent to $3.338 per gallon.

Earnings Reports

Earnings reports: CIM-Chimera Inv Corp (Consensus $0.11), JDAS-JDA Software (0.57), ISCA-International Speedway (0.40).

Financial Calendar

0700 ET Weekly MBA mortgage applications, previous -7.1% with purchase sub-index -1.4% and refi sub-index -8.3%.

0730 ET June Challenger job cuts, May 66.7%.

0815 ET June ADP employment change expected +100,000, May +133,000.

0830 ET Weekly initial unemployment claims expected -1,000 to 385,000, previous -6,000 to 386,000. Weekly continuing claims expected +4,000 to 3.300 million, previous -15,000 to 3.296 million.

0830 ET USDA weekly exports.

1000 ET June ISM non-manufacturing index expected -0.7 to 53.0, May +0.2 to 53.7.

n/a ICSC June chain store sales, May +1.7% y/y.

1030 ET DOE Weekly Petroleum Status Report.

1030 ET DOE natural gas storage.

1630 ET Weekly money supply report and Fed balance sheet.

n/a Treasury announces 3-year, 10-year and 30-year auctions for July 10-12.

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