Stocks opened flat on Turnaround Tuesday only to cascade down to the lows of the day shortly thereafter. However, crude oil futures acted in the exact opposite fashion, rising nearly 3% to $92.25. Early in the trading session, Apple (AAPL) fell as much as 2% to $623, but recovered nicely on the day, closing the day down only 0.25%.
German Chancellor Angela Merkel visited Greek Prime Minister Samaras today in Athens amidst 25,000 protesters. Merkel pledged her support for a country that has seen youth unemployment levels skyrocket and a recession deepen. The troika (ECB, IMF, and EU) officials continue to analyze the Greek government’s pledges to cut spending and boost growth in order to allow the next tranche of aid to be released to Greece from the region’s bailout fund.
The latest Gallup poll showed that Romney gained on Obama among likely voters. Romney now holds an estimated 49% of the vote compared to Obama’s 47%, with a margin of error of 2%. Last week’s poll showed Obama holding a lead over Romney at 50% to 45%. Today’s sell-off likely disproves the theory that stocks rose last Thursday on Romney’s outperformance of Obama at the presidential debate.
Following up on a lawsuit filed last week against JPMorgan (JPM) that involved defective mortgage loans stemming from its acquisition of Bear Stearns, the US filed a lawsuit against Wells Fargo (WFC), stating that the bank falsely certified FHA loans that once defaulted and had to be paid for by the US government.
Aluminum manufacturer Alcoa (AA) kicked off earnings season by beating earnings-per-share estimates. The company reported EPS of $0.03 vs estimates of break-even and lowered their global aluminum demand forecast for 2012 to 6% from 7%.
The Fed will release its beige book of economic conditions throughout the 12 Fed districts. Today, the minutes from the regional directors’ meeting were released, and noted the fiscal uncertainty ahead, positive changes in housing, and increasingly weak manufacturing.
In the morning, the Census Bureau will release Merchant Wholesalers Inventories for August with economists forecasting a monthly decline to 0.4% from 0.7%. In the afternoon, the Treasury will sell $21 billion in 10-year notes. The current 10-year note closed at a yield of 1.71% today.
In earnings, Costco (COST), Progressive (PGR), ADTRAN (ADTN), and OCZ Technology (OCZ) will report earnings.