Intraday Market Update
The pre-markets were weak this morning but stocks bounced back at the open, briefly pushing prices above yesterday's highs. However, the selling kicked in at about 10:00 AM EDT which quickly sent the indices to their lowest levels of the day at about 11:35 EDT. All of the indices are off their lows and are trading near the middle of their opening ranges, teetering between positive and negative territory. The selling appeared to begin after reports surfaced that the $61 billion aid package for Greece won't be enough to prevent a default. The 10-year Greek/German spread widened out to a record +520 bps.

Energy stocks are under pressure following weekly inventory data released by the EIA Petroleum Status Report. The data showed a build in weekly inventories which sent most of the energy stocks in the S&P 500 lower. In other economic news, the Mortgage Bankers Association Mortgage Application Index increased +13.6% last week. This was after the index fell -9.6% in the previous week. The advance came amid a +15.8% jump in the Refinance Index and a +10.1% gain in the Purchase Index. The increase in the overall index came on the heels of a -14 bps decrease in the average 30-year mortgage rate to 5.04%. This remains above the record low of 4.61% that was reached at the end of March 2009. It is also worth noting that the deadline for the first-time home buyer tax credit ends in 9 days which boosted the Purchase Index numbers.

In earnings news, Morgan Stanley is up +5% in trading after convincingly beating top and bottom line expectations. The bottom line outperformance was aided by a one-time tax benefit. The company's proprietary trading revenues were significantly higher than last quarter, similar to Goldman Sachs' report yesterday. Wells Fargo reported a slightly better EPS than estimates, but revenue disappointed. WFC shares are down -1.60%. Regional banks SunTrust, Zions Bancorp and KeyCorp all reported smaller than expected losses, while provisions for loan losses fell at all three banks. ZION and KEY are up +6% while STI is about flat.

Consumer facing giants McDonalds, AT&T and Altria all posted solid EPS. US comps are finally taking off for McDonalds after relatively flat comps recently. After spiking higher this morning shares of MCD are now slightly in the red. AT&T is off more than -1% thanks to declines in net wireless, postpaid and u-verse subscriber additions. AT&T executives warned it is still early to talk about a recovery in the firm's business revenue, despite "improving metrics" within the segment. Altria trimmed its 2010 outlook and warned that next quarter will be "particularly difficult" for earnings growth. MO is up +1%.

Commodities are hanging tough after being under pressure early. Front month crude is about break-even at about $84.00. Natural gas is up +0.78% an is right at $4.00. Gold is higher by 0.78% to $1,148 per ounce, while silver is higher by +1.59%. Copper is higher by +0.36%.

International Markets:
Stocks in the Asia-Pacific region finished mostly higher, with major equity markets in Japan, Taiwan and Korea all posting gains of over +1%. Australian stocks were higher +0.6%.

Markets in Europe gave back some the gains from yesterday led by Spain (-2.08%), France (-1.22%) and London (-1.04%). The German market was down -0.54%.

Core Sector List:
Overall reading: 8 sectors advancing, 8 sectors declining.
Strongest Sectors: Home Construction, Banks, Broker Dealers
Weakest Sectors: Healthcare, Biotechs, Pharmaceuticals

S&P 500 - Daily and 30-minute Intraday Charts:

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