Obama Impressive in Europe

Obama had a great week. The stops in Iraq, Afghanistan, Israel, and Europe has made him look Presidential easing concerns about his lack of national security experience. This trip also put him into the main focus of the mainstream media and left McCain on the outside looking in. Obama gained support to focus more an Afghanistan. A view that the Chairman of the Joint Chiefs Admiral Michael Mullen agrees with.

Bottom Line: Obama is continuing to adapt and overcome any potential weakness that could hurt him in the general election While it is to early to tell what potential benefits this will have for him, early indications are this trip will help neutralize the criticism about his lack of foreign policy experience.

Energy Alternative Becoming More Attractive

With oil prices continuing to remain high other alternatives are continuing to be explored. An area that is getting a big push includes: synthetic gasoline and diesel.These fuels are made from biomass but are chemically similar to petroleum based products. They can be shipped, pumped and stored the same way as crude oil. In the coming years demand will soar for cellulose ethanol and synfuels. Many businesses will start using crop and forestry waste, sawdust, orange peels, and other products to develop income in the coming years.

Bottom line: Even with oil prices remaining at high levels the worlds dependency on crude oil will continue to drop as research and development of alternatives become more viable.

Upcoming Events and Economic Numbers

Tuesday July 29

Consumer Confidence: consensus: 50 prior: 50.4

Wednesday July 30

Oil Inventories: prior: -1,558M

Thursday July 31

GDP (advanced): consensus: 1.8% prior: 1.0%

Jobless Claims: consensus: 380k prior: 406K

NAPM Chicago: consensus: 49.0 prior: 49.6

Friday August 1

Unemployment: consensus: 5.6% prior: 5.5%

Construction Spending: consensus: -.3% prior: -.4%

ISM Manufacturing: consensus: 50.5 prior: 50.2

Upcoming Earnings

Monday July 28

Verizon (VZ): Before the open: estimate: .65

Amgen (AMGN): After the close: 1.02

Southern Copper (PCU): After the close: estimate: .68

Tuesday July 29

General Motors (GM): Before the open: -2.45

Wednesday July 30

Visa (V): After the close: estimate: .48

Walt Disney (DIS): After the close: estimate: .61

Thursday July 31

Exxon Mobil (XOM): Before the open: estimate: 2.52

Master Card (MA): Before the open: estimate: 2.02

Friday August 1

Chevron (CVX): Before the open: estimate: 3.03