Sector Investing

[ReturntoSender]

From Briefing.com: 7:30AM Dell expects lower revenue and Earnings Per Share in Q2 -- sees EPS of $0.21-0.23 vs $0.32 consensus (DELL) 22.10 : Co issues downside guidance for Q2 (Jul), sees EPS of $0.21-0.23 vs. $0.32 Reuters Estimates consensus; sees Q2 (Jul) revs of $14 bln vs. $14.24 bln consensus. These estimates primarily reflect aggressive pricing in a slowing commercial market worldwide. Dell continues to make significant investments in customer service and support capabilities. The co is seeing positive results and will continue to invest to drive a superior customer experience. Dell has also made significant investments in its products and expects to deliver a greatly expanded product line in the second half of the year. According to the most recent IDC numbers, Dell gained 1 share point sequentially, achieving a record 19.2% share, as the industry moves into a new phase of consolidation.

8:17AM Bond Watch: Treasuries Blaze Trail Higher (BONDX) : The bond market is higher this morning as sentiment still benefits from acknowledgement by the Fed that inflation is less of a concern than economic growth. The 10-yr yield is down at 5.018%, a level not seen since June 14th. The 2-10-yr yields spread made a mad dash less-inverted but has thus far fallen a little short at -2.1 from -3.6 as curve traders wrestle with the possibility of a pause in Aug. Bond prices in the EuroZone are better despite concerns that rate hikes will continue beyond early Aug's expected ECB action while in Japan bond prices are down despite weakness in Japanese equities. Treasuries continue to sail at full mast with a likely geopolitical bid adding its winds as the weekend approaches. The 10-yr yield looks poised to push down to a 4 handle as the 5- & 3-yr are already there. The market may become fixated with grabbing a new handle such that it becomes a motivator in & of itself. Either way the bonds are benefiting from multiple sources as the winds accumulate to propel prices higher. The euro has been boosted to 1.2674 as the dollar gave way to lowered expectations for future rate hikes hurt the buck, while the yen has gotten a bump to 116.0500, the best level against the buck in a week. The Dollar index is running at 85.96 (-0.26). The gold has regained some ground but remains well beneath the high levels seen in the safe-haven run seen last week of 676.53, now 629.13 (+0.97). The crude has been boosted as instability in the Mid East continues to escalate with the Sep now 74.69 (+0.42) of 4.7% from last week's highs. The economic & Fed-speak calendars are empty, so the market will chose its own logic. The 10-yr is currently +02/32nds yielding 5.016% (for more bond commentary click here).

5:08AM On The Wires : Silicon Image (SIMG) announces an agreement with the China Video Industry Association under which CVIA will promote and support the use of High-Definition Multimedia Interface by the consumer electronics industry in China... Stora Enso (SEO) announces they have signed a definitive agreement to sell its Pankakoski Mill in Finland to an international group of investors. The debt-free sales price is EUR 20 mln... Boeing (BA) and Futura International Airways, a charter airline headquartered in Spain, announce an order for three Boeing Next-Generation 737-800s and three purchase rights. The order is valued at approx $210 mln.