Daily Market Color July 22, 2016Markets Finishing the Week Quietly, as DNC Convention and FOMC Meeting Loom Next Week With the Republican convention now behind us, the markets are looking forward to next week’s Democratic convention in Philadelphia and the FOMC’s next meeting being held next Tuesday and Wednesday. US stocks are flat to up slightly today, as now 80% of reporting companies have released 2nd quarter earnings, with 58% exceeding expectations. Overnight, European stocks and the British Pound were down, as some of the first weak economic data released after the Brexit vote starts to impact market sentiment there. Meanwhile US Treasurys and swaps are mostly flat, although LIBOR rates – 1 month through 12 month LIBOR, continue to trickle upwards and reach new 7 year highs, in anticipation of more Fed rate action before the end of the year. The Bloomberg Commodity Index has fallen for the sixth straight day, the longest losing streak in the last 3 months, with all major commodity prices down including oil and gold, with the notable exception of wheat, which is up 1% on the day. In recent notable tech news, Yahoo appears to be close to selling its core internet business to Verizon Communications Inc. for $5 billion. In the bank space, the market is anticipating First Hawaiian Bank’s setting terms soon on its IPO, facilitating the sale of the bank by BNP, expected over the next several weeks.