A.M. MARKET UPDATE 07.29.09: TREASURY CONCERN LOOMS

TUESDAY AUCTION DISAPPOINTS
WALL STREET JOURNAL: A disappointing two-year Treasury auction Tuesday was seen as a barometer for the government's remaining Treasury note sales this week. The worse-than-expected results don't bode well for Treasury's auction Wednesday of a record $39 billion in five-year notes. Treasury will also sell seven-year notes Thursday. In total, the government will offer up more than $200 billion of Treasury notes and bills this week, a record amount. "The rather poor two-year auction results are concerning," said Robert Allen, managing director at Banc of America Securities . . . READ MORE

WALL ST. FUTURES POINT LOWER
CNN/MONEY: U.S. stocks were poised to fall at Wednesday's open, as investors prepared to retreat after pushing Wall Street higher over such a short period of time. At 4:56 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were lower . . . READ MORE

ASIAN STOCKS SLUMP
BLOOMBURG: Asian stocks dropped for the first time in 12 days . . . China’s Shanghai Composite Index slumped 5 percent. The MSCI Asia Pacific Index lost 1 percent to 109.38 as of 6:10 p.m. in Tokyo, with two stocks falling for each one that rose. The gauge had climbed 13 percent in the past 11 days, the longest winning streak since January 2004. . . . "Investors are getting more selective now since equities are no longer cheap," said Manpreet Gill, Asian strategist at Barclays Wealth, which has $238 billion in assets. "A further correction is possible." Hong Kong's Hang Seng Index slumped 2.4 percent. . . . READ MORE