Epic research special report 09th aug 2016

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DAILY REPORT 9 th AUGUST 2016 YOUR MINTVISORY Call us at +91-731-6642300 Global markets at a glance European stock markets rose on Monday, propped up by gains in the shares of major banks and other financial stocks, while Dutch firm PostNL surged after results. The pan-European STOXX 600 index edged up 0.04 percent, with Germany's DAX, Britain's FTSE and France's CAC all 0.1 -0.6 percent higher. The STOXX Europe 600 Bank index ad- vanced 1.4 percent, helped by a 3.6 percent rise at Barclays Asian shares stood atop one-year peaks on Tuesday as a desperate search for yield drove a record inflow into emerging market funds, while oil prices tried to sustain their latest bounce. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.1 percent having already risen for three sessions in a row. Japan's Nikkei was also attempting a fourth session of gains with an early rise of 0.1 percent, while South Korea firmed 0.2 percent. U.S. stocks slipped Monday as declines in health-care shares offset gains in energy stocks. The pullback came in a relatively light day of trading after a strong July jobs re- porthelped lift the S&P 500 and the Nasdaq Composite to all-time highs The Organization of the Petroleum Export- ing Countriesat the end of last week. Roughly 5.8 billion shares changed hands Monday, making it the seventh- lowest volume day of the year so far. Many investors are trying to figure out how to square the job additions with other more disappointing indicators, including U.S. gross- domestic-product growth, said Kenny Polcari, director of equities at O’Neil Securities. Dow fell 0.08 percent, while the S&P 500 lost 0.09 percent and the Nasdaq 0.15 per- cent. Befitting the minor moves, it was one of the year's slowest sessions as a sub-average number of shares traded. Previous day Roundup The market has ended at new 52-week high. The Nifty closed above 8700, for first time since April 16, 2015. The 50-share index was up 28 points at 8711. The Sensex was up 104 points at 28182.57. HDFC, Infosys and Reliance were big contributors to index gains. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 92.17 pts], Capital Goods [up 10.37 pts], PSU [up 30.02 pts], FMCG [up 47.06 Pts], Realty [up 14.27 pts], Power [up 18.89 pts], Auto [up 148.06 pts], Healthcare [up 23.34 pts], IT [up 71.20 pts], Metals [up 62.67 Pts], TECK [up 14.25 pts], Oil& Gas [up 164.74 pts]. World Indices Index Value % Change DJI 18463.00 +0.02 S&P500 2175.75 +0.01 NASDAQ 5213.14 -0.15 FTSE100 6771.50 +0.11 NIKKEI 16669.69 +0.11 HANG SENG 22410.64 -0.37 Top Gainers Company CMP Change % Chg HINDALCO 148.95 5.25 3.65 BPCL 604.50 17.95 3.06 ADANIPORTS 240.50 6.50 2.78 TATAPOWER 72.85 1.75 2.46 BOSCHLTD 25,488 452.90 1.81 Top Losers Company CMP Change % Chg BHARTIARTL 350.80 -13.20 -3.63 IDEA 102.95 -3.25 -3.60 INFRATEL 380.45 -8.80 -2.26 NTPC 159.5 -1.90 -1.21 ITC 249.55 -3.00 -1.19 Stocks at 52 Week’s HIGH Symbol Prev. Close Change %Chg ACC 1721.05 -6.05 -0.35 ACCLEYA 1248.90 -20.90 -1.67 ADHUNIKIND 133.65 26.70 19.98 ADVENZYMES 1423.95 31.00 2.18 AGRITECH 30.20 1.50 4.97 AJANTPHARM 1827.65 52.35 2.86 ALKEM 1542.95 54.05 3.54 Indian Indices Company CMP Change % Chg NIFTY 8711.35 +28.20 +0.32 SENSEX 28182.57 +104.22 +0.37 Stocks at 52 Week’s LOW Symbol Prev. Close Change %Chg BIRLACOT 0.10 0.05 100.00 BSLMITED 8.25 -0.55 -6.25 CONTROLPR 283.00 -17.30 -5.76

Transcript of Epic research special report 09th aug 2016

Page 1: Epic research special report 09th aug 2016

DAILY REPORT 9

th AUGUST 2016

YOUR MINTVISORY Call us at +91-731-6642300

Global markets at a glance

European stock markets rose on Monday, propped up by gains in the shares of major banks and other financial stocks, while Dutch firm PostNL surged after results. The pan-European STOXX 600 index edged up 0.04 percent, with Germany's DAX, Britain's FTSE and France's CAC all 0.1-0.6 percent higher. The STOXX Europe 600 Bank index ad-vanced 1.4 percent, helped by a 3.6 percent rise at Barclays

Asian shares stood atop one-year peaks on Tuesday as a desperate search for yield drove a record inflow into emerging market funds, while oil prices tried to sustain their latest bounce. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.1 percent having already risen for three sessions in a row. Japan's Nikkei was also attempting a fourth session of gains with an early rise of 0.1 percent, while South Korea firmed 0.2 percent.

U.S. stocks slipped Monday as declines in health-care shares offset gains in energy stocks. The pullback came in a relatively light day of trading after a strong July jobs re-porthelped lift the S&P 500 and the Nasdaq Composite to all-time highs The Organization of the Petroleum Export-ing Countriesat the end of last week. Roughly 5.8 billion shares changed hands Monday, making it the seventh-lowest volume day of the year so far. Many investors are trying to figure out how to square the job additions with other more disappointing indicators, including U.S. gross-domestic-product growth, said Kenny Polcari, director of equities at O’Neil Securities. Dow fell 0.08 percent, while the S&P 500 lost 0.09 percent and the Nasdaq 0.15 per-cent. Befitting the minor moves, it was one of the year's slowest sessions as a sub-average number of shares traded.

Previous day Roundup

The market has ended at new 52-week high. The Nifty closed above 8700, for first time since April 16, 2015. The 50-share index was up 28 points at 8711. The Sensex was up 104 points at 28182.57. HDFC, Infosys and Reliance were big contributors to index gains.

Index stats

The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 92.17 pts], Capital Goods [up 10.37 pts], PSU [up 30.02 pts], FMCG [up 47.06 Pts], Realty [up 14.27 pts], Power [up 18.89 pts], Auto [up 148.06 pts], Healthcare [up 23.34 pts], IT [up 71.20 pts], Metals [up 62.67 Pts], TECK [up 14.25 pts], Oil& Gas [up 164.74 pts].

World Indices

Index Value % Change

DJI 18463.00 +0.02

S&P500 2175.75 +0.01

NASDAQ 5213.14 -0.15

FTSE100 6771.50 +0.11

NIKKEI 16669.69 +0.11

HANG SENG 22410.64 -0.37

Top Gainers

Company CMP Change % Chg

HINDALCO 148.95 5.25 3.65

BPCL 604.50 17.95 3.06

ADANIPORTS 240.50 6.50 2.78

TATAPOWER 72.85 1.75 2.46

BOSCHLTD 25,488 452.90 1.81

Top Losers

Company CMP Change % Chg

BHARTIARTL 350.80 -13.20 -3.63

IDEA 102.95 -3.25 -3.60

INFRATEL 380.45 -8.80 -2.26

NTPC 159.5 -1.90 -1.21

ITC 249.55 -3.00 -1.19

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

ACC 1721.05 -6.05 -0.35

ACCLEYA 1248.90 -20.90 -1.67

ADHUNIKIND 133.65 26.70 19.98

ADVENZYMES 1423.95 31.00 2.18

AGRITECH 30.20 1.50 4.97

AJANTPHARM 1827.65 52.35 2.86

ALKEM 1542.95 54.05 3.54

Indian Indices

Company CMP Change % Chg

NIFTY 8711.35 +28.20 +0.32

SENSEX 28182.57 +104.22 +0.37

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

BIRLACOT 0.10 0.05 100.00

BSLMITED 8.25 -0.55 -6.25

CONTROLPR 283.00 -17.30 -5.76

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STOCK RECOMMENDATION [CASH]

APOLLO TYRE [CASH]

On the daily chart APOLLO TYRE has shown good upside move in previous two trading session and has given break-out of major resistance level at 181.50 rose with heavy volume ,for this it seems to be a good buy opportunity above 183 levels .So we advise you to buy above 183.50 for the targets of 185-187 with stop loss below 181

MACRO NEWS

Event Today- RBI interest rate decision Results: Lupin, Apollo Tyres, Adani Ports, Adani Power,

JK Tyre, Natco Pharma, Tata Global Beverages, Godrej Properties, Manappuram Fin, PFC, Geometric Ltd, Cen-tury Textiles, Edelweiss Financial, Container Corp Of In-dia, UCO Bank, United Bank Of India, Astrazeneca Pharma India, Insecticides India, Teamlease Services, Intellect Design Arena, Indian Overseas Bank, S H Kelkar, Jagran Prakashan, Jubilant Life Sciences, Anuh Pharma, Archies, Atul Auto, DCM Shriram Ltd, Emco, Finolex Ca-bles, Gokaldas Exports, Huhtamaki Ppl Ltd, Indag Rub-ber, JBM Auto, Ltd, Monte Carlo Fashions, Nitesh Es-tates, Patel Integrated Logistics, Prism Cement, RSWM Ltd, Subex Ltd, Sundram Fasteners, Wheels India.

MF exposure in bank stocks hits a record at Rs 94,000 cr GST to bring in fresh capital, will benefit Goa in long run On-tap bank licencing 'credit positive' for NBFCs India exported meat worth $568 million in April-May Coal e-auction rose 29% in 2015-16 Regulatory issues, land acquisition delay 112 NHAI pro-

jects Hero Motocorp Q1 profit, EBITDA jump 18%; revenue

beats expectations Britannia Q1 profit up 13% at Rs 219 cr, revenue meets

estimates Colgate Q1 profit up 8%; oral care category retain lead-

ership Future Lifestyle Fashion Q1 net jumps 42.3% to Rs 3.53cr Zydus acquires derma brand Melgain from Issar Pharma PE investments in auto sector declines in 2016

STOCK RECOMMENDATIONS [FUTURE]

1. COALINDIA[FUTURE]

2.Last trading session COALINDIA future show positive strength in METAL sector and close near major resistance with bullish candlestick in daily chart.Stock open on flattish note and traded narrow range in whole day but last 30 min-utes stock show good strength and close near day high and since last session it rose with rising OI in long side . We may see sharp rise for that it will be good to buy above 334 for the target of 337-340 with SL of 329.

2. AXISBANK [FUTURE]

Last trading session AXISBANK future given out-performance in BANKING sector and stock open flattish note but saw good strength second half of market and close near major resistance level with bullish candlestick in daily chart and since last session it rose with rising OI in long side.We may see sharp rise for that it will be good to buy above 575 for the target of 580-585 with SL of 570.

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DAILY REPORT 9

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FUTURES & OPTIONS

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 8,800 63.50 1,48,961 48,47,925

NIFTY CE 8,700 112.50 1,03,767 33,79,650

BANKNIFTY CE 19,000 102.50 37,899 2,60,520

HEROMOTO CE 3,600 30.00 5,012 1,71,600

RELIANCE CE 1,040 15.80 2,587 6,63,000

SBIN CE 240 5.35 2,39 40,38,000

INFY CE 1,100 12.75 1,848 18,85,000

BIOCON CE 900 13.05 1,814 3,67,400

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 8,700 85.30 1,23,505 22,4,625

NIFTY PE 8,600 52.00 1,04,430 48,08,325

BANKNIFTY PE 18,800 83.00 34,568 1,98,920

HEROMOTO PE 3,400 52.00 2,538 70,400

SBIN PE 230 6.25 1,566 21,18,000

RELIANCE PE 1,000 6.15 1,369 3,31,500

RELIANCE PE 1,020 12.10 1,435 5,56,500

BHARATFORG PE 780 8.65 1,282 2,96,400

FII DERIVATIVES STATISTICS

BUY OPEN INTEREST AT THE END OF THE DAY SELL

No. of

Contracts Amount in

Crores No. of

Contracts Amount in

Crores No. of

Contracts Amount in

Crores NET AMOUNT

INDEX FUTURES 21799 1456.73 15293 1052.24 330901 22082.40 404.49

INDEX OPTIONS 313882 21400.59 300360 20562.48 933138 61394.14 838.11

STOCK FUTURES 83170 5639.31 92316 6251.76 863761 56860.85 -612.45

STOCK OPTIONS 52466 3547.51 52265 3531.35 74734 5013.43 16.16

TOTAL 646.30

STOCKS IN NEWS Britannia plans to set up new plant in Bengal Synchrony Fin to expand operations in Hyderabad Marico expects Parachute volumes growing 5-7% KNR Constructions bags orders worth Rs 1334.70 cr PowerGrid beats global peers in high-voltage game Glenmark gets US FDA nod for skin cream Kenalog AuroPharma gets USFDA nod for anti-infective injec-

tion OIL pays Rs 2.49 cr royalty to Arunachal Pradesh NIFTY FUTURE

Nifty in last trading session traded in a narrow range of around 30 points only, it opened with a little gap up and fell down later and closed with a Doji candlestick. Since Nifty closed with a doji on top it may be assumed that it would come down a little but only temporarily because it also maintained to close above 8720, so we advise you to buy it from around 8700-8720 for the targets of 8780 and 8850 with strict stop loss of 8600

INDICES R2 R1 PIVOT S1 S2

NIFTY 8737.10 8724.20 8710.90 8698.00 8684.70

BANKNIFTY 19086.00 18954.00 18880.00 18822.00 18748.00

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COMMODITY ROUNDUP

Gold eased today as global stocks rose on Monday after strong US and European economic data offset concerns about weak Chinese trade figures. The metal witnessed a sharp drop after excellent US nonfarm payrolls data on Fri-day, easing from its three week highs. The metal currently trades at $341.60 per ounce, down 0.21% on the day. An increase in speculative longs is keeping losses curbed for the shiny metal. MCX Gold futures are trading at Rs 31157 per 10 grams, down 0.23% on the day. The counter tested a low near Rs 31K levels. Gold speculator and large futures traders sharply added to their gold bullish positions higher last week following three straight weeks of declines, according to the latest COT data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of +294,183 contracts in the data reported through August 2nd. This was a weekly change of +15,228 contracts.

Nickel prices surged 0.74% to Rs 721.60 per kg in futures trading as speculators widened positions taking positive cues from global market. Moreover, rising demand at the domestic spot market from alloy-makers also supported the upside. At MCX nickel for delivery in August rose Rs 5.30, or 0.74%, to Rs 721.60 per kg, in a business turnover of 248 lots. Metal for delivery in September was also up by Rs 5.10, or 0.71%, to Rs 727 per kg in 4 lots. Nickel prices surged largely in tandem with a firm trend in metal at LME and pick up in demand at the domestic spot markets.

Lead futures strengthened 0.54% to Rs 120.05 per kg as speculators built up bets on rising demand in the domestic spot market and a firming trend overseas. At MCX lead for delivery in the current month was trading higher by 65 paise, or 0.54%, at Rs 120.05 per kg, with a turnover of 103 lots. The metal for delivery in September edged higher by 50 paise, or 0.42%, to Rs 120.70 per kg, in a business vol-ume of one lot. Apart from pick-up in domestic demand, mainly from battery-makers, firming trend in the base met-als pack at the LME as strong US jobs data burnished senti-ment toward the world's biggest economy.

India being dependent on imports for 85 per cent of its oilrequirements, every dollar increase per barrel of crude pushes our import bill by an extra $1.37 billion, And, it adds to inflationary pressure. Naturally, Finance Minister Arun Jaitley had jitters when crude prices came close to $53 a barrel in June rallying from 12-year lows of $27 earlier in the year.

RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD ABOVE 31300 TGT 31400 31600 SL 31200

SELL GOLD BELOW 31020 TGT 30920 30720 SL 31150

SILVER

TRADING STRATEGY:

BUY SILVER ABOVE 46440 TGT 46640 47240 SL 46240

SELL SILVER BELOW 46200 TGT 46000 45400 SL 46400

MCX

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NCDEX

NCDEX INDICES

Index Value % Change

BARLEY 1545 -0.52

CHANA 833 -1.20

CORIANDER 2464 -3.3

COTTON SEED 3671 -3.98

GUAR SEED 18600 -3.78

JEERA 1475 +0.27

MUSTARDSEED 4817 -1.65

REF SOYA OIL 635 -0.06

SUGAR M GRADE 3703 -0.27

TURMERIC 8382 +0.34

RECOMMENDATIONS

DHANIYA

BUY CORIANDER AUG ABOVE 8240 TARGET 8285 8385 SL

BELOW 8175

SELL CORIANDER AUG BELOW 8090 TARGET 8045 7945 SL

ABOVE 8155

GUARGUM

BUY GUARGUM OCT ABOVE 6680 TARGET 6730 6800 SL BELOW 6620

SELL GUARGUM OCT BELOW 6560 TARGET 6510 6440 SL ABOVE 6620

the NCDEX Guarseed and Guargum futures tumbled sharply today amid excellent rainfall in major producing areas. The overall trend remains bearish for the Guar complex after the steep declines in last three weeks. Traders are expect-ing the current rainfall in Gujrat and Rajasthan to continue for next two days. The export demand is slack. NCDEX Guaseed futures for October are limit down by 4% at Rs 3671 per quintal. Guargum futures are also down 4% at Rs 6560 per tonne. The India Meteorological Department (IMD) has retained its forecast for an above-average monsoon this year, boosting hopes of a rise in farm output and income after two years of drought. An average or normal monsoon means rainfall between 96 and 104% of a 50-year average of 89 centime-ters. Water levels in India’s main reservoirs were at 45% of their storage capacity in the week to 4 August, down 2 per-centage points from a year earlier, government data showed last week. Prices of urad, moong and thoor dal were up while those of gram dal, wheat and sugar fell in the wholesale foodgrain market here today. The rest of all other commodities ruled steady in the market. Urad and moong dal on the opening day were up by Rs 300 per quintal each at Rs 13,500 and Rs 8,800, from its previous rates of Rs 13,200 and Rs 8,500, respectively. In addition, tur dal price increased Rs 200 per quintal to Rs 13,200, from Rs 13,000. In contrast, gram dal decreased by Rs 200 per quintal to Rs 10,000, from its previous Rs 10,200, on the opening day. Likewise, wheat and sugar declined Rs 50 and Rs 20 per quintal each, re-spectively, to Rs 2,900 and Rs 3,900, from earlier rates of Rs 2,950 and Rs 3,920.

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RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 66.740 Yen-100 65.400

Euro 74.062 GBP 87.276

CURRENCY

USD/INR

BUY USD/INR AUG ABOVE 67.08 TARGET 67.21 67.36 SL

BELOW 66.88

SELL USD/INR AUG BELOW 66.95 TARGET 66.82 66.67 SL

ABOVE 67.15

EUR/INR

BUY EUR/INR AUG ABOVE 74.38 TARGET 74.53 74.73 SL BE-

LOW 74.18

SELL EUR/INR AUG BELOW 74.28 TARGET 74.13 73.93 SL

ABOVE 74.48

CURRENCY MARKET UPDATES:

Dollar consolidated the moderate gains made in the wake of Friday's upbeat US payrolls report. Against a basket of currencies, the dollar was steady at 96.358 and up from last week's trough of 95.003. It edged up to 102.35 yen, and away from the recent low of 100.65, while the euro dipped to USD 1.1081. Futures markets now imply around a 54% chance of a Fed hike in Dec though it was notable that a move was not fully priced in until Oct next year.

The Indian rupee on Monday closed weaker against the US dollar, ahead of the Reserve Bank of India’s (RBI’s) bi-monthly policy on Tuesday. The home currency closed at 66.85 a dollar, down 0.1% from its previous close of 66.78. The rupee opened at 66.83 a dollar and touched a high and a low of 66.71 and 66.86, respectively. Outgoing RBI gover-nor Raghuram Rajan will likely choose to leave policy rates unchanged on Tuesday, leaving it to his successor to decide on future rate cuts. Out of 10 economists and bankers nine expect RBI to keep the repo rate—the rate at which com-mercial banks borrow from the central bank—unchanged at 6.5% on Tuesday. The reverse repo rate would stay at 6% and the cash reserve ratio—the portion of deposits that banks must hold with RBI—may also stay steady at 4%.

So far this year, the rupee is down 1%, while FIIs have bought $4.96 billion in equity and sold $1.07 billion in debt markets. Meanwhile, India’s 10-year bond yield closed at 7.173%, as compared with its Friday’s close of 7.168%. Asian currencies weakened against the dollar, following the bigger-than-estimated increase in US payrolls data on Friday. The stronger US employment data revives talk of the US Federal Reserve rate hike this year and supports the dollar broadly. The US economy added 255,000 jobs in July, well above the expected 180,000. The unemployment rate remained unchanged at 4.9%

Japanese yen was down 0.54%, Malaysian ringgit 0.17%, Singapore dollar 0.08%, China offshore 0.06%, Indonesian rupiah 0.05%, Taiwan dollar 0.05%. However, Thai baht was up 0.26%, South Korean won 0.21%, Philippines peso 0.17%.

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Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

08/08/16 NCDEX DHANIYA SEP. BUY 8620 8665-8765 8555 NOT EXECUTED

08/08/16 NCDEX DHANIYA SEP. SELL 8390 8345-8245 8455 NOTEXECUTED

08/08/16 NCDEX GUARGUM OCT. BUY 7060 7110-7180 7000 NOT EXECUTED

08/08/16 NCDEX GUARGUM OCT. SELL 6810 6760-6690 6870 ALL TARGET

08/08/16 MCX GOLD AUG. BUY 31350 31450-31650 31200 NOT EXECUTED

08/08/16 MCX GOLD AUG. SELL 31200 31100-30900 31300 1ST TARGET

08/08/16 MCX SILVER SEPT. BUY 46490 46690-47390 46250 NOT EXECUTED

08/08/16 MCX SILVER SEPT. SELL 46150 4595-45350 46350 1ST TARGET

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

08/08/16 NIFTY FUTURE BUY 8750 8830-8900 8650 OPEN

08/08/16 KOTAKBANK FUTURE BUY 781 787-795 770 OPEN

08/08/16 M&M FUTURE BUY 1505 1515-1525 1490 PROFIT BOOKED

08/08/16 RAMCOCEMENTS CASH BUY 569 577-580 563 SL TRIGGERED

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NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

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TIME REPORT PERIOD ACTUAL CONSENSUS

FORECAST PREVIOUS

MONDAY, AUG. 8

NON SCHEDULE

TUESDAY, AUG. 9

6 AM NFIB SMALL-BUSINESS INDEX JULY 94.5

8:30 AM PRODUCTIVITY 2Q -0.6%

8:30 AM UNIT LABOR COSTS 2Q 4.5%

10 AM WHOLESALE INVENTORIES JUNE 0.1%

WEDNESDAY, AUG. 10

10 AM JOB OPENINGS JUNE 5.5 MLN

2 PM FEDERAL BUDGET JULY

THURSDAY, AUG. 11

8:30 AM WEEKLY JOBLESS CLAIMS 8/5 N/A N/A

8:30 AM IMPORT PRICE INDEX JULY 0.2%

FRIDAY, AUG. 12

8:30 AM RETAIL SALES JULY 0.6%

8:30 AM RETAIL SALES EX-AUTOS JULY 0.7%

8:30 AM PRODUCER PRICE INDEX JULY 0.5%

10 AM CONSUMER SENTIMENT AUG. 90.0

10 AM BUSINESS INVENTORIES JUNE 0.2%