FRIDAY’S MARKET: Stocks Too Hot to Handle Heading into THIS Weekend

Yeah, that's right!

Stocks are too hot to handle now, so expect some selling into the close. The factors are mounting against equity ownership near-term. We’ve got the Fed working against us, with plans to raise interest rates, and a world that’s falling apart around our little island of make believe. Forget the bank issues in Portugal, we’ve got major allies who no longer trust us, and enemies who are seeking to form stronger bonds with other malcontents in our own neighborhood. Energy providers are just as unpredictable as ever and the new world is not one of order, but disorder. It’s not the weekend to enter heavy equities. They’re shooting rockets at a nuke plant in Israel for God’s sake.

U.S. Markets

Market ETF	7/11
SPDR S&P 500 (NYSE: SPY)	-0.1%
SPDR Dow Jones (NYSE: DIA)	-0.2%
PowerShares (Nasdaq: QQQ)	+0.4%
SPDR Gold Shares (NYSE: GLD)	-0.0%
iShares US Real Estate (NYSE: IYR)	-0.3%
United States Oil (NYSE: USO)	-1.1%
PowerShares DB US$  Bullish (NYSE: UUP)	+0.1%
PIMCO Total Return ETF (NYSE: BOND)	-0.0%

Stocks are leveling as the Portuguese issue fades, but they’re still too hot to handle heading into this weekend. That’s because Israel is preparing to invade Gaza and rockets are flying out of Palestine and Lebanon. Targets include nuclear reactors. Meanwhile, ISIS seems to be making further headway in Iraq as the Kurds and central government quarrel over their working relationship. Russia’s President Putin is visiting all our shady neighbors this weekend, including Cuba and Venezuela. Since we stepped on Putin’s toes, we can’t expect amicable results from that. Meanwhile, we’re dealing with a Fed that clearly is raising rates in 2015 and possibly sooner than the market expected previously.

International Markets

EUROPE	%	ASIA/PACIFIC	%
Vanguard FTSE Europe (NYSE: VGK)	-0.3%	Precidian MAXIS Nikkei (NYSE: NKY)	+0.3%
iShares MSCI UK (NYSE: EWU)	-0.3%	SPDR S&P China (NYSE: GXC)	+0.1%
iShares MSCI France (NYSE: EWQ)	-0.1%	iShares Asia 50 (NYSE: AIA)	-0.1%
iShares MSCI Germany (NYSE: EWG)	-0.5%	iShares MSCI S. Korea (NYSE: EWY)	-1.0%
Global X FTSE Greece (NYSE: GREK)	-0.6%	iPath MSCI India (NYSE: INP)	-1.6%

Emerging markets are leveling out as Europe closes its worst week in three months. It’s all about Portugal and the debt problems of Portuguese bank Espirito Santo. However, after the initial reaction, investors have come to their senses and are not looking toward the same sort of system wide problems we saw during the European financial crisis. Still, other factors are weighing heavily as well, including Ukraine, Israel, Iraq and the spying row between the U.S. and Germany.

Economic Data

ECONOMIC REPORT SCHEDULE
Economic Data Point	Prior	Expected	Actual
FRIDAY
Treasury Budget	-$130 B	+$86.5 B
Rocky Mountain Economic Summit
Plosser Speaks
Evans Speaks

There’s no data to speak of yet today, but the events listed here have driven some discussion in the market. Plosser is a noted Fed hawk, and so would not be supportive of stocks today. However, he fits the dire tone of this article perfectly.

Commodity Markets (7/11)

United States Oil (NYSE: USO)	-0.9%
iPath SP Crude Oil (NYSE: OIL)	-1.1%
U.S. Natural Gas (NYSE: UNG)	+0.0%
U.S. Gasoline (NYSE: UGA)	-1.0%
SPDR Gold Trust (NYSE: GLD)	-0.0%
Market Vectors Gold Miners (NYSE: GDX)	+0.7%
iShares Silver Trust (NYSE: SLV)	+0.2%
iPath DJ UBS Industrial Metals (NYSE: JJM)	-0.4%
Teucrium Corn ETF (NYSE: CORN)	-0.7%
Teucrium Wheat Fund (NYSE: WEAT)	-1.2%
Teucrium Soybean Fund (NYSE: SOYB)	-0.0%
iPath DJ-UBS Cocoa (NYSE: NIB)	+0.2%
iPath DJ-UBS Sugar (NYSE: SGG)	-1.5%
ICE Orange Juice Conc.	-0.4%
CME Lumber	-0.7%
CME Live Cattle	+0.0%

Expectations are for dollar strengthening, and so an underlying weight is present against the prices of commodities moving forward. Geopolitical events factor as well here given that they threaten the dollar (Russia) and also energy supplies (Iraq, Israel, Ukraine). For agriculture, strange weather patterns are likely to act as a support to pricing.

Stock Activity

We’ve only two U.S earnings reports to speak of today, but one of those is Wells Fargo (NYSE: WFC), the first of the big banks to report this quarter. The stock is down 1.2% at the hour of scribbling here, despite meeting analysts’ views. Revenue was down slightly, though it was better than Wall Street expected. Still, whispers must have been for more. The bank saw bad loan figures improve, but deposits grew significantly, which pinched the net interest margin. Wells is looking to increase auto lending and investment services, which should benefit operating margins moving forward. However, it appears investors expected more from the bank noted for its brand that came through the crisis somewhat untarnished.

EPS REPORTS
Company	Ticker
FRIDAY
Fastenal	Nasdaq: FAST
Wells Fargo	NYSE: WFC

MOST ACTIVE STOCKS
BIGGEST GAINERS	% Gain
Supertel Hospitality (Nasdaq: SPPRP)	+32%
InterCloud Systems (Nasdaq: ICLD)	+21%
Joe’s Jeans (Nasdaq: JOEZ)	+18%
Supertel Hospitality (Nasdaq: SPPR)	+9%
Radius Health (Nasdaq: RDUS)	+10%
Molycorp (NYSE: MCP)	+13%
Digital Ally (Nasdaq: DGLY)	+9%
Glu Mobile (Nasdaq: GLUU)	+9%
Frontline (NYSE: FRO)	+9%
Uni-Pixel (Nasdaq: UNXL)	+11%
BIGGEST LOSERS	% Drop
ACI Worldwide (Nasdaq: ACIW)	-67%
Isle of Capri Casinos (Nasdaq: ISLE)	-15%
MGIC Investment (NYSE: MTG)	-13%
China Advanced (Nasdaq: CADC)	-12%
CounterPath (Nasdaq: CPAH)	-11%
Rent-A-Center (Nasdaq: RCII)	-11%
Inventergy Global (Nasdaq: INVT)	-11%
Continental Materials (Nasdaq: CLDN)	-6%
MELA Sciences (Nasdaq: MELA)	-7%
Arotech (Nasdaq: ARTX)	-7%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.