Draghi Rocks: Market Happenings for Thursday, July 26, 2012

Premarket, futures are up after European Central Bank president Mario Draghi said the central bank would do whatever it takes to preserve the euro. Gainers this morning include WDC (+17.83%), S, AKAM, PCS and STX wile losers include ORLY (-5.49%), APOL, IPG, BSX and DOW.

The Market

It’s going to be “The Draghi Rally”. How long it last is another question. You got to remember this is not a country like the US. This is the eurozone, comprised of many countries.

Draghi, speaking at an investment conference in London, made comments that suggest the ECB may start buying bonds again in an effort to help bring down skyrocketing borrowing costs.

3M Company (MMM) Q2 EPS of $1.66 beats by $0.01. Revenue of $7.5B (+1.9% Y/Y) misses by $290M.

Exxon Mobil’s profit surges 49% to $15.9 billion during the second quarter.

ExxonMobil (XOM) Q2 EPS excluding one-time items was $1.86, missing analyst estimates of $1.95. Revenues totaled $127.36B vs. $115.08B expected and $125.49 in the year-ago period. Oil-equivalent production was essentially flat and capital spending fell 9% to $9.33B.

CVX, MRK and PFE report earnings tomorrow, before the open.

Earnings Reports

Earnings reports: XOM-Exxon Mobil (Consensus $1.95), Amazon.com (0.43), Facebook (0.11), Occidental (1.60), United Technology (1.41), MMM-3M (1.65), Amgen (1.55), Colgate-Palmolive (1.33), Gilead Sciences (0.95), Starbucks (0.45), Dow Chemical (0.64), Kimberly-Clark (1.28), Celgene (1.18), Nextera (1.16), National Oilwell Varco (1.40), Covidien (1.06), Prececision Castpt (2.36), McKesson (1.48), Ventas (0.32), Chubb (1.14), Raytheon (1.22), CME Group (0.83), Hershey (0.61), Noble Energy (0.92), Waste Management (0.52), Mead Johnson (0.77), Prologis (-0.04), International Paper (0.46), Cerner (0.55), McGraw-Hill (0.76), CA (0.61), Ensco (1.25).

Financial Calendar

0830 ET Weekly initial unemployment claims expected -6,000 to 380,000, previous +34,000 to 386,000. Weekly continuing claims expected -14,000 to 3.300 mln, previous +1,000 to 3.314 mln.

0830 ET June durable goods orders expected +0.3%, May +1.3% m/m. June durable goods orders ex-transportation expected +0.1%, May +0.7% y/y.

0830 ET USDA weekly exports.

1000 ET June pending home sales expected +0.3% m/m and +12.1% y/y, May +5.9% m/m and +15.3% y/y.
1030 ET DOE natural gas storage.

1100 ET Kansas City Fed July manufacturing index expected +1 to 4, June 3.
1300 ET Treasury sells $29 bln in 7-year T-notes.

1630 ET Weekly money supply report and Fed balance sheet.

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