Monday, 7-19-10
- After a solid post-holiday week, the markets returned back to a downward move. A lack of consumer confidence was sited at the reason for the return to negative territory.
- The initial report on the TARP bailout for GM and Chrysler has indicated the government acted too hastily in forcing the automakers to close dealerships. At issue was the contention that the government team had little or no auto industry experience and that proper research into the impact of the closings wasn’t done.
- Financial Reform (FINREG) finally passed the Senate, now sending the bill on to President Obama. It will take a while to see get beyond the talking points and see the benefits and the consequences of the 2300 page bill.
- Without admitting any wrongdoing, Goldman Sachs settled with the SEC for $550 million. At issue was a lack of disclosure regarding the use of the now famous hedge fund manager John Paulson (no relation to former Treasury Secretary and Goldman Sachs CEO Hank Paulson).
- BP was able to stop the leak in the Gulf. Testing continues to see if the cap will last, as relief wells continue to be drilled.
- The first week in the Q2 earnings season began last week with mixed results.
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This Week:
- June Housing starts will be reported on Tuesday. A -2% decrease is expected over the report from May.
- President Obama is scheduled to sign FINREG into law on Wednesday.
- Fed Chairman Ben Bernanke will testify before the Senate Banking Committee on Wednesday.
- June Existing Home sales will be reported on Thursday. A -9.9% decrease in expected over the report from May.
- European bank stress tests will be released on Friday.
- The following companies report Q2 numbers this week: American Express, Apple, BlackRock, Capital One, Coca-Cola, Ford, Goldman Sachs, IBM, Johnson & Johnson, Morgan Stanley, Pepsico, Texas Instruments, UnitedHealth Group and Wells Fargo.