1.

Today could be another low-volume affair considering the advance Q2 GDP release and the latest
FOMC directive await on Wednesday. Even so, the futures market is sunny side up this morning
thanks to a rebound in Japan (+1.5%) and China (+0.7%) overnight, some hopeful consumer
confidence surveys in the eurozone, and a stream of earnings results that are mostly better than
expected.

2. Then again, the futures market might be up this morning simply because the cash market was down
yesterday, triggering the market's Pavlovian reflex to buy the dip.

3. Merck (MRK) and Pfizer (PFE) headline the list of reporters this morning. Both Dow components
managed to beat the Capital IQ consensus estimate by a penny (imagine that) while reporting a year-
over-year decline in revenue.

For Merck, revenues dropped 10.6% and the company lowered its FY13 revenue outlook due to
currency headwinds. Pfizer, meanwhile, saw revenues slip 7.1% and reaffirmed its FY13 outlook.

4. Asian markets ended mostly higher. Japan's Nikkei led the way with a gain of 1.5% after shrugging off
reports indicating the country's government may lower its 2014 real GDP forecast to 1.0% while
cutting nominal GDP expectations to 3.2%.

5. Major European indices hold modest gains across the board. In news, reports indicate the Bank of
Italy has begun to investigate balance sheets of eight banks due to worries about worsening asset
quality. Elsewhere, the International Monetary Fund has confirmed the next tranche of Greek aid in
the amount of EUR1.7 billion. Regional economic data was limited to just a handful of releases.
Eurozone Business and Consumer Survey increased to 92.5 from 91.3 (92.6 forecast). Consumer
Confidence improved to -17.0 from -18.8 (-17.0 expected) while Industrial Sentiment ticked up to -
11.0 from -11.2 (-10.0 forecast).

6. The May Case-Shiller 20-city Home Price Index rose 12.2% while a 10.5% increase had been
expected by the Briefing.com consensus. This follows the previous month's increase of 12.1%.

7. En el lado negativo, los oficios del sector energtico con una derrota por la mnima del 0,1% en el
petrleo crudo negocia un 0,8% a 103,75 dlares por barril. Por otra parte, el sector de los materiales
es inferior en un 1,3% como nombres de fertilizantes bajo desempeo despus de que el mayor
productor de potasa, la rusa OAO Uralkali, se retir de un cartel de potasa. Potasio (POT 29.02, -
8.88) y Mosaic (MOS 40.29, -12.67) son a la vez abajo, cerca de 24,0%.

BLOOMBERG

8. Las acciones estadounidenses subieron ya que las empresas de Eastman Chemical Co. de Aetna
Inc. elevaron sus pronsticos de ganancias y los inversores de todo el ao esperaban los resultados
de la reunin de poltica monetaria de dos das de la Reserva Federal.

9. A pickup in second-half earnings will be crucial to move further from here on. Markets will be sensitive
to economic announcements again this week and particularly to what the Fed has to say.

10. The Federal Open Market Committee, which has said it may start paring stimulus should theU.S.
economy meet the central banks forecasts, starts a two-day meeting today. The Fed will probably
maintain its benchmark interest rate at 0.25 percent, economists predict. Policy makers will begin to
reduce the central banks bond-purchase program in September, a Bloomberg survey of economists
shows.

11. Home prices rose in May by the most in more than seven years as the recovery in U.S. residential
real estate gained momentum, a report showed today. The S&P/Case-Shiller index of property values
climbed 12.2 percent from May 2012, after advancing 12.1 percent a month earlier. The median
projection of 31 economists surveyed by Bloomberg called for a 12.4 percent advance.

12. Investors are also watching earnings reports. Of the 302 companies in the S&P 500 that have posted
quarterly results so far, 73 percent have exceeded analysts estimates for profit and 55 percent have
topped sales projections, data compiled by Bloomberg show.

13. Australias dollar weakened as the central bank indicated it may lower interest rates, while
commodities fell for a fifth day as metals declined.

14. U.S. consumer confidence probably worsened in July, economists said before a report today, while a
gauge of U.S. home prices rose the most in more than seven years.

15. Home prices rose in May by the most in more than seven years as the recovery in U.S. residential
real estate gained momentum.

16. Histricamente bajos costos de los prstamos, a la escasez y la mejora del mercado de trabajo estn
impulsando la demanda de viviendas y llevando los precios hacia arriba. La subida en el valor de las
viviendas tambin est reforzando las finanzas del hogar, que pueden estimular el gasto de los
consumidores, la mayor parte de la economa de EE.UU..

17. At the same time, rising borrowing costs may slow the recovery. The average rate on a 30-year fixed
mortgage was 4.31 percent in the week ended July 25, up from 3.49 percent a year earlier according
to data from Freddie Mac. The rate reached a record low of 3.31 percent in November.

18. While buyers may conclude that they missed the absolute bottom of the market in terms of prices and
interest rates, they also recognize that both are still a bargain in terms of the amount of house you
can buy at a given income level.

19. West Texas Intermediate crude fell to a three-week low before a government report that may show
U.S. economic growth slowed in the second quarter.

20. Futures trimmed a monthly advance that would be the biggest in 11 months. U.S. gross domestic
product probably expanded at a 1 percent annualized rate in the second quarter, compared with 1.8
percent in the previous three months, according to a Bloomberg News survey before data are
released tomorrow. WTIs discount to Brent widened to a two-week high.

21. Confidence among U.S. consumers declined more than forecast in July after reaching a five-year high
a month earlier as Americans grew more pessimistic about the outlook for the economy and
employment.

22. Opiniones de los consumidores de la economa apagaron como americanos pagaron ms en la
bomba de gas de este mes que el ao pasado y las tasas hipotecarias ms altas que amenazan con
frenar el impulso en el mercado inmobiliario. Al mismo tiempo, el aumento de la riqueza ligada al
valor de las propiedades y carteras de acciones estn ayudando a sostener el gasto de los hogares.

23. To the extent that youre paying attention and seeing rates are rising, thats bad news if youre looking
for a mortgage or a car loan.

24. The Conference Boards measure of expectations for the next six months decreased to 84.7 from
91.1. The gauge of present conditions improved to 73.6 this month from 68.7 in June.

25. Job gains, along with cheaper borrowing costs, are emboldening consumers to consider large
purchases such as vehicles and homes. New cars and trucks sold in June at the fastest pace since
2007, according to Wards Automotive Group, as American drivers replaced aging vehicles.

26. Nombres de fertilizantes bajo presin despus de OAO Uralkali se retiraron de un crtel potasa.