Dow futures falls 50 points, U.S. market news Aug 03

Dow Futures contract was down 50 points, or 0.1%, the S&P 500 Futures were down 10 points, or 0.2%, and the Nasdaq 100 Futures were down 40 points, or 0.3%, around 06:30 ET (10:30 GMT).

1. Apple and Amazon will report, and Adidas has reduced its loss prediction – what’s driving markets?
2. Dow futures fall; Apple and Amazon earnings, as well as jobless claims, are in the spotlight.
3. Layoffs in the United States have reached their lowest level in over a year.
4. Futures on Wall Street fall as Treasury rates reach a nine-month high.
5. Despite a drop in COVID vaccination sales, Moderna’s revenue exceeds expectations.
6. Tesla is facing a class action lawsuit in California over its EV range claims.
7. As the currency declines, Japan requests that X remove a bogus account belonging to a prominent foreign policy official.
8. UPS employees have begun voting on a tentative agreement that has prevented a US strike.
9. Lionsgate will pay $500 million for Hasbro’s eOne film and television company.
10. Qualcomm falls after indicating further suffering from the smartphone decline.
11. Fiverr International’s earnings were $0.12 higher than expected, and revenue exceeded expectations.
12. Strong job data boosts the dollar, while Sterling awaits the BOE meeting.
13. Tesla’s China-made EV sales fell 31% month on month in July.
14. Rich investor Ackman has announced that he is shorting 30-year Treasuries.
15. Alibaba unveiled an open-source AI model that resembles Llama 2 from Meta.
16. Markets retreat as Wall Street collapses following a downgrade in Fitch’s US rating.
17. Dow lower today due to a reduction in US debt ratings and a dent in the IT sector
18. The Fitch Ratings U.S. downgrade, according to JPMorgan’s Dimon, “doesn’t really matter”: CNBC
19. Strengthening dollar offsets bullish inventory draw, keeping oil prices stable.
20. As the dollar rises on positive payrolls news, gold falls.

GLOBAL NEWS 

1. Asian stocks fall as US yields rise and the dollar strengthens.
2. Asian stocks decline as risk aversion persists following the downgrade of the United States’ credit rating.
3. Asian stocks are reluctant following the Wall Street sell-off, but the dollar remains strong.
4. The dollar rises as the US economy’s resilience outweighs budgetary uncertainties.
5. European stocks decline; attention is on the BOE rate decision
6. July services activity in China accelerates – Caixin PMI
7. July saw a six-month low in UK services growth, according to PMI
8. France’s services sector shrinks in July by more than initially anticipated, according to PMI
9. In July, India’s services growth reached a 13-year high due to strong demand.
10. In July, China’s service sector grew more than projected, according to the Caixin MI.
11. Australia’s trade balance remains stable in June as exports outnumber imports.
12. Australia’s retail sales continue to fall in the third quarter.
13. July saw a six-month low in UK services growth, according to PMI
14. In July, the euro zone’s economic activity declined more quickly—PM
15. With the crisis of 2023, EU banks will be subject to liquidity tests in 2019.
16. Home prices in Toronto decline for a second consecutive month in July.
17. In July, the euro zone’s economic activity declined more quickly—PMI
18. As analysts anticipate the conclusion of global rate hikes, the Canadian currency is expected to rise: Reuters poll
19. France’s services sector shrinks in July by more than initially anticipated, according to PMI
20. European stocks decline; attention is on the BOE rate decision
21. With the crisis of 2023, EU banks will be subject to liquidity tests in 2019.
22. July sales of Volvo cars increased 21% year over year.
23. Infineon increases its investment in Malaysia as third-quarter revenue exceeds expectations.
24. German exports remain stagnant in June, owing to sluggish international demand.
25. Rolls-Royce reports an increase in first-half profit, driven by civil aerospace.
26. Merck in Germany reports a greater reduction in earnings.
27. Mitsubishi UFJ will put $937 million into US Bancorp.
28. The Bank of England is likely to hike interest rates for the 14th time in a row.
29. DBS’s Q2 profit increases by 48% and exceeds expectations.
30. Downer EDI in Australia suffers a $253 million yearly loss due to an impairment charge, and its shares fall.

Economic data

• ADP National Employment Report for July showed Private Sector Employment Increased by 324,000 Jobs in July above the estimate of 189,000 while annual pay was up 6.2%
• US layoffs fall to lowest level in nearly a year
• U.S.-based employers announced 23,697 job cuts in July, a 42% drop from the number of layoffs announced in June and an 8% decrease from July 2022,

Global Economic Data

Greater Toronto Area (GTA) home prices fell in July for the second straight month and home sales tumbled nearly 30% as the Bank of Canada continued to raise borrowing costs.

The average price of an area home fell 5.4% in July from June to C$1,118,374 ($837,796), while the number of sales declined 29.7%, Toronto Regional Real Estate Board (TRREB) data showed on Thursday.

India services purchasing managers’ index rose to 62.3 in July from June’s 58.5, confounding expectations in a Reuters poll for a dip to 58.0. It was the highest index reading since June 2010 and has remained above the 50-mark that separates growth from expansion for two years.

China Caixin July Services PMI 54.1 vs. est. 52.4 and slightly above previous 53.9; and Caixin July Composite PMI 51.9 vs. prior 52.5.

Australia’s services sector contracted in July, as the Judo Bank Australia Services Performance of Manufacturing Index fell to 47.9 in July from 50.3.

The bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was 27.7 vs 20.8 last week. Bulls rise to 49% from 44.9%, Neutrals fall to 29.7% from 31%, Bears fall to 21.3% from 24.1%.

UK S&P Global (NYSE:SPGI) Services Purchasing Managers’ Index (PMI) fell in July to 51.5 from 53.7 in June, unchanged from a preliminary “flash” reading. Readings above 50 denote growth.

The HCOB France final purchasing managers index (PMI) for the services sector,  fell to 47.1 points from 48.0 points in June – below July’s flash services PMI which had given a reading of 47.4 points.

UK services growth cools to six-month low in July: PMI                 

 UK  S&P Global (NYSE:SPGI) Services Purchasing Managers’ Index (PMI) fell in July to 51.5 from 53.7 in June, unchanged from a preliminary “flash” reading.

Decline in euro zone business activity accelerated in July -PMI 

HCOB’s final Composite Purchasing Managers’ Index (PMI) dropped to an eight-month low of 48.6 in July from June’s 49.9.

Economic Calendar

•     7:30 AM ET                  Challenger Job Layoffs for July
•      8:30 AM ET                  Weekly Jobless Claims
•      8:30 AM ET                  Continuing Claims
•      8:30 AM ET                  US Nonfarm productivity for Q2
•      8:30 AM ET                  Unit Labor Costs for Q2
•      9:45 AM ET                  S&P Global Composite, July-Final
•      9:45 AM ET                  S&P Global Services PMI, July-Final
•      10:00 AM ET                Factory Orders M/M for June
•      10:00 AM ET                ISM Non-Manufacturing PMI for July
•      10:30 AM ET                Weekly EIA Natural Gas Inventory Data

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