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S&P 500 +2.92 CLOSE 982.18
NASDAQ +1.93 CLOSE 1,967.89
HOME SALES BOOST BANK STOCKS
CNBC: Stocks eked out a gain Monday as banks got a boost from a jump in new-home sales . . . Traders were worried about a record $200 billion of government debt flooding the market this week, which kicked off with $6 billion of 20-year TIPS, or inflation-protected securities . . . The Treasury also auctioned $32 billion of three-month bills and $31 billion of six-month bills to decent demand as part of its routine weekly auction . . . READ MORE
'GOOD COMPARED TO WHAT?'
ASSOCIATED PRESS: Disappointing earnings from Verizon Communications Inc., Aetna Inc. and Corning Inc. kept the market's gains in check . . . RadioShack Corp. reported higher second-quarter earnings that beat forecasts, but mainly from cost-cutting -- a theme that has become familiar this earnings season and has left many investors disappointed . . . "Last week was dubbed as a good earnings week, but good compared to what?" asked David Hefty, CEO of Cornerstone Wealth Management in Auburn, Ind. "It doesn't take a lot to get the market excited these days" . . . READ MORE
- NEW HOME SALES UP 11% IN JUNE
- VERIZON EARNINGS DOWN 21%
- AETNA REPORTS 28% DECLINE
- AMGEN 2ND QUARTER PROFIT +40%
TREASURY BOND AUCTIONS
WALL STREET JOURNAL: Investors are busy building discounts into the Treasurys market as the government prepares to set yet another record for weekly debt issuance. Monday's $6 billion auction of 20-year inflation-linked government bonds kicks off a $205 billion debt extravaganza this week in the Treasurys market. That includes $90 billion of bills with maturities up to one year and $109 billion of notes, starting with Tuesday's $42 billion auction of two-year paper . . . READ MORE
WEEK'S $211 BILLION DEBT SALE
CAUSES CONCERNS IN MARKET
CNBC: Investors remain worried that the global market may have difficulty digesting the $211 billion of debt to be sold this week . . . "We expect demand to develop for the Treasury auctions, but $211 billion is a lot of paper for a summer holiday week," said Andrew Brenner, senior vice president at MF Global in New York . . . READ MORE
BONDS: 'OVERWHELMING SUPPLY'?
MARKETWATCH: This week's Treasury auctions, which will surpass the record $104 billion sold in late June, should bring back in play the issue of "overwhelming supply," a valid concern offset so far "by the outlook for growth, or lack thereof, in the second half of the year," said Dan Greenhaus, an analyst with the market strategy group at Miller Tabak & Co. "Should below trend growth prove a reality, the potential impact on corporate earnings, stock prices and the Treasury market cannot be discounted" . . . READ MORE
AMAZON SLIPS ON 'SELL' RATING
CNN/MONEY: Amazon (AMZN) fell 3% to $83.85 in early trading after BWS Financial downgraded the online retail giant to a sell rating. Analyst Hamed Khorsand said the company will be hard pressed to achieve its long-term goal of 5% operating margins, given its high spending on technology and discount-shipping programs like Amazon Prime . . . READ MORE
VOLATILITY INDEX SPIKES UP
CNBC: The CBOE Volatility Index (VIX) is up 7 percent today; traders note that the force of the rally and the uninterrupted nature of it has a lot of people looking for a pullback. The first sign of that would be an increase in options activity, which is what the VIX tracks . . . It has been declining almost in a straight line since the March lows, so a 7 percent rise in one day has the attention of traders . . . READ MORE
EXEC'S $100 MILLION BONUS
DRAWS HEAT FOR CITIGROUP
CBS: The controversy over executive pay in the financial sector appears far from over, with Citigroup and the government poised to clash over the bank's scheduled $100 million bonus to energy trader Andrew J. Hall later this year . . . Citigroup is on the hook for $45 billion in government aid . . . READ MORE
CRUDE OIL TOPS $68/BARREL
WALL STREET JOURNAL: Crude futures finished slightly higher Monday . . . rally has lifted oil prices for nine consecutive trading days. Light, sweet crude for September delivery settled 33 cents, or 0.5% higher, at $68.38 a barrel . . . Many market participants remain skeptical about crude's recent rally . . . U.S. oil inventories are still 16% above last year . . . READ MORE
CURRENCY MARKET
DOLLAR, YEN FALL VS. EURO
REUTERS: The U.S. dollar dropped to a more than seven-week low against the euro on Monday as a jump in U.S. new-home sales bolstered the market's appetite for riskier assets . . . The yen also fell broadly, pushing the dollar to its highest level versus the Japanese currency in three weeks and lifting the euro to its strongest level in nearly a month. Both the dollar and yen tend to fall when risk appetite improves . . . READ MORE
CNN/MONEY ANALYSIS
EARNINGS KEY TO MARKET WEEK
ALEXANDRA TWIN: Can a recharged stock market rally withstand the biggest week of corporate profit reports yet?. . . This week brings profit reports from 146 of the S&P 500 companies, or 29% of the broad index . . . Chevron, Exxon Mobil, Travelers, Walt Disney . . . "Given the pessimistic outlook going into the earnings period, the results have been pretty good so far, spurring the last week or so of gains," said Karl Mills, president and chief investment officer at Jurika Mills & Keifer. "But the economic recovery is going to be a jerky W and the market will probaby follow the same pattern . . . For stocks, we're probably near the top of the current upswing" . . . READ MORE
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