Dow futures falls 225 points, U.S. market news Aug 15

Dow Futures contract was down 225 points, or 0.6%, at 06:55 ET (10:55 GMT), the S&P 500 Futures contract was down 27 points, or 0.6%, and the Nasdaq 100 Futures contract was down 95 points, or 0.6%.

U.S NEWS

1. What’s moving markets? Retail sales in the United States, Home Depot, rate calls in China and Russia.
2. Futures fall as yields remain stable ahead of July retail sales data.
3. Tesla introduces lower-cost Model S and X models with lesser ranges in the United States.
4. Home Depot outperforms expectations in the second quarter and launches a new $15 billion repurchase program.
5. Sea Ltd shares fell 10% after Q2 earnings were missed.
6. Striking Hollywood writers will meet with studios for the first time in three months.
7. Musk’s X social networking site has shut down its promoted accounts ad business, according to Axios.
8. As more Chinese customers pay for music, Tencent Music’s quarterly revenue climbs.
9. Getty Images stock drops 19% as Hollywood strikes induce a reduction in outlook; analysts remain optimistic
10. Discover Financial stock falls 5% as CEO resigns, prompting Evercore to become more negative.
11. Despite returns below bank savings rates, hedge funds receive incentives – Goldman Sachs
12. Home Depot’s earnings were $0.19 higher than expected, and revenue exceeded expectations.
13. Elbit Systems’ earnings were $0.13 higher than expected, and revenue exceeded expectations.
14. Stocks in the United States are neutral as investors await retail earnings and economic data.
15. PayPal names an Intuit veteran with small-business experience as its next CEO.
16. Air Canada exceeds quarterly profit expectations and reports high demand
17. Oil falls on China’s concerns ahead of US retail sales and Fed minutes
18. Yellen warns of the dangers of clean energy supply chain over-concentration.
19. In the second quarter, US hedge funds sold their holdings in Chinese companies.
20. Ford has hired a former Apple executive to manage a new business unit.
21. Ford hires an Apple executive to develop high-margin digital services.
22. Patricio, the CEO of Kraft Heinz, will step down, and an insider will follow him.
23. BioXcel reduces its workforce by more than half as it shifts its attention to the retail sector for an agitation medicine.

GLOBAL NEWS 

1. Japan’s markets are higher at the close of trade, with the Nikkei 225 up 0.49%.
2. At the close of trading, Australian equities were up; the S&P/ASX 200 was up 0.38%.
3. Sweden and the United Kingdom are leading European share declines as inflation data fuels rate-hike speculation.
4. The outcome of Chevron, Woodside, and Australian union talks could take many days.
5. The Russian central bank raises interest rates to 12% in order to support the rouble.
6. Sweden and the United Kingdom are leading European share declines as inflation data fuels rate-hike speculation.
7. Structured certificates related to China’s Alibaba will be listed on the Singapore Exchange.
8. Global markets remain at 5-week lows as China slashes interest rates.
9. South Africa’s unemployment rate fell to 32.6% in the second quarter.
10. According to a Reuters poll, Norway is expected to raise its policy rate to 4.0% this week.
11. China Evergrande NEV shares rise on a $3.2 billion debt-reduction plan.
12. The Russian central bank raises interest rates to 12% in order to support the rouble.
13. Asia’s markets have reached a one-month low as a sluggish China reduces interest rates.
14. China lowers key interest rates as a dismal batch of July data clouds the economic picture.
15. Oil prices rise as China lowers policy rates to help the economy.
16. Following China’s unexpected rate decrease, the dollar strengthened and the yuan fell to a nine-month low.
17. The trade surplus in Indonesia narrowed more than predicted in July.
18. In July, China’s property investment fell for the 17th consecutive month.
19. Japan’s second-quarter GDP exceeds expectations as exports soar.
20. The banning of teenage unemployment data in China has sparked widespread outrage.
21. Australia’s second-quarter wage rises underwhelm, arguing against additional increases.
22. M&S in the United Kingdom sees annual earnings rise.
23. Retail inflation in India has risen due to rising food prices, posing a challenge to the Modi government.
24. Exor, a subsidiary of the Agnelli family, acquired a $2.8 billion interest in Philips.
25. Loan transfers at India’s ‘bad bank’ are declining due to valuation and liability issues, according to sources.

Economic data

• Core PPI for July came in at +2.4% y/y versus consensus of +2.3%, which was somewhat hotter than expected but in line with the preceding +2.4%. In contrast to the consensus of +0.2% and higher than the prior +0.1%, the core mo/mo reading was +0.3%.
• Michigan State University Preliminary Sentiment for August came in at 71.2, which was roughly in line with predictions of 71.3 and the prior reading of 71.6. On the back of a slight improvement in the present situation and a slight decline in expectations, the sentiment spread increased slightly from 8.3 to 10.1.
• The one-year forecast for inflation from the University of Michigan was 3.3%, compared to the consensus forecast of 3.5% and the previous forecast of 3.4%, while the five-year forecast was 2.9%, compared to the consensus forecast of 3.0% and the previous forecast of 3.0%.

Global Economic Data

The People’s Bank of China (PBoC) cuts the 1Y MLF rate to 2.5% from 2.65%; cuts 7day RR rate to 1.8% from 1.9%; Injects 401b via 1Y MLF at 2.5%, net 1b injection.

China July Retail Sales rise 2.5% y/y vs. 4.5% consensus; China Jan-July Retail Sales rise 7.3% y/y vs. 7.6% consensus; China July Industrial Output rises 3.7% y/y vs. 4.4% consensus; China Jan-July Industrial Output rises 3.8% y/y vs. 3.8% consensus.

Russia hikes rates at emergency meeting after Ruble’s Crash. Policymakers lifted their benchmark to 12% from 8.5%, the second straight increase and the sharpest since the immediate aftermath of Russia’s invasion of Ukraine almost 18 months ago.

Japan 2Q Preliminary GDP above expected; +1.5% q/q vs +0.8% consensus and Japan 2Q GDP Deflator below expected; +3.4% vs +3.8% consensus.

German ZEW Economic Sentiment Index in Germany increased to -12.30 points in August from -14.70 points in July of 2023.

Former Dallas Federal Reserve President Kaplan said he expects the FOMC will leave rates unchanged at the September meeting; thinks an estimate that by the middle of next year, they’ll feel that it’s appropriate to cut rates isn’t unreasonable.

Economic Calendar

7:45 AM ET                  ICSC Weekly Retail Sales

8:30 AM ET                  Empire Manufacturing for August

8:30 AM ET                  Import/Export Prices M/M for July

8:30 AM ET                  Retail Sales M/M for July

8:30 AM ET                  Retail Sales Ex: Autos M/M for July

8:55 AM ET                  Johnson/Redbook Weekly Sales

10:00 AM ET                Business Inventories M/M for June

10:00 AM ET                NAHB Housing Market Index for Aug

11:00 AM ET                Fed’s Kashkari Speaks at API Conference

4:00 PM ET                   Net Long-term TIC Flows for June

4:30 PM ET                   API Weekly Inventory Data

Other Key Events:

Deutsche Bank 2023 Transportation Conference, 8/15-8/16, in New York

Needham Annual MedTech & Diagnostics Conference (virtual) 8/14-8/15

Stifel Biotech Executive Summer Summit, 8/14-8/16, in Newport, RI

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