Dow futures up 120 points, U.S. market news Aug 31

Dow futures

Dow Futures contract was up 120 points, or 0.4%, S&P 500 Futures traded 5 points, or 0.1%, higher, while Nasdaq 100 Futures down 10 points, or 0.1%.

US NEWS

1. What’s moving markets? Jobless claims and PCE are on the rise, and Salesforce has raised its guidance.
2. Dow futures are up; unemployment claims, the PCE index, and Salesforce earnings are all under focus.
3. Five Below shares fall 5% as guidance is missed; Morgan Stanley sees an appealing risk-reward ratio.
4. Hormel Foods’ earnings and revenue fell short of expectations.
5. Robot invasion slows as the US economy weakens and interest rates rise.
6. Following its acquisition by Credit Suisse, UBS embarks on a cost-cutting effort, laying off 3,000 Swiss employees.
7. Chewy slides 5% as full-year sales projection falls short of analyst expectations; Evercore downgrades
8. Okta gains 11% on Q2 earnings beat and excellent guidance; analysts remain wary
9. The United States restricts Nvidia and AMD AI chip exports to some Middle Eastern countries. 
10. Tesla faces a federal investigation regarding vehicle range following a Reuters article -WSJ 
11. Schrems, a privacy activist, has filed complaints against Google’s Fitbit. 
12. The dollar has stabilized ahead of PCE inflation data, while the eurozone is waiting for CPI data. 
13. Goldman’s fintech unit was warned by the Fed about risk and compliance oversight -FT 
14. The United States restricts Nvidia and AMD AI chip exports to some Middle Eastern countries. 
15. Tesla faces a federal investigation regarding vehicle range following a Reuters article -WSJ 
16. Schrems, a privacy activist, has filed complaints against Google’s Fitbit. 
17. The Dow Jones Industrial Average was up 0.11% at the closing of trading in the United States. 
18. Pure Storage beats expectations for the second quarter and provides forecasts 
19. Five Below shares are down 7% as guidance is missed. 
20. Okta stock rises 10% on Q2 earnings beat and better-than-expected forecasts. 
21. Chewy rises after exceeding profit and sales targets. 
22. Salesforce Inc earnings beat by $0.22, revenue topped estimates 
23. Oil prices remain near a 10-day high on mixed China PMI data. 
24. Google Search now includes generative AI in India and Japan. 
25. US insurers are bracing for Idalia claims, with UBS estimating a $9.36 billion bill in Florida. 

GLOBAL NEWS 

1. Australia’s stocks are higher at the close of trading, with the S&P/ASX 200 up 0.10%. 
2. Japan’s markets are higher at the close of trade, with the Nikkei 225 up 0.74%. 
3. On China’s pessimism, Asian stocks are set to have their worst month since February. 
4. European stock futures rise; eurozone CPI data in focus 
5. European stocks are mixed, while eurozone CPI data is in the limelight. 
6. In August, French inflation was higher than projected, at 5.7%.In August, German unemployment rose more than predicted. 
7. Workers in Japan go on strike for the first time in decades over a department store sale. 
8. Asian markets fall as the economy slows. China PMIs compensate for Fed pause bets. 
9. Asia FX is treading water amid conflicting China PMIs and Fed pause predictions. 
10. UBS earns $28.875 billion in the second quarter. 
11. Chinese stocks fell sharply in August as concerns about a slowing economy grew. 
12. The euro bounces on inflation, but the dollar braces for job losses. 
13. Gold holds steady amid Fed pause bets, but China PMIs fall. 
14. Japan requests record defense spending amid tensions with China. 
15. Thai industry output fell more than expected in July, as exports fell. 
16. Almost 70% of Japanese companies have yet to establish greater capital efficiency goals. 
17. In August, China’s manufacturing PMI edged closer to expansion. 
18. China’s factory activity falls for the fifth month in a row, putting pressure on policymakers. 
19. Australia’s second-quarter business investment is the highest in seven and a half years. 
20. July factory output in Japan falls, putting pressure on manufacturers. 
21. Google Search now includes generative AI in India and Japan. 

Economic Data

U.S. Q2 GDP growth was revised to 2.1%, annualized, from the prior estimate of 2.4% and slower than the +2.4% consensus, the Bureau of Economic Analysis said. The core PCE price index rose +3.7% vs. +3.8% expected and +3.8% prior estimate. Q2 personal income growth of 4.2% (was 4.3%) for total income and 5.9% (was 5.2%) for disposable income. 

August ADP private payrolls data reported at 177K vs. est. 195K while the prior month was upwardly revised to 371K from 324K. 

July advance trade deficit of goods widened to $91.2b from $88.8b in prior month, the Commerce Department said vs. median est. $90.0b. Imports rose 1.9% in July to $255.964b from $251.257b in June and exports rose 1.5% in July to $164.789b from $162.428b in June. 

In mortgage data: The Mortgage Banks Assoc reported that weekly US mortgage market index rose +2.3% in latest week as the purchase index rises 2.0% and the refinance index rises 2.5% as the average 30-year mortgage rate unchanged at 7.31% in Aug 25 week. 

Global Economic Data

Federal Reserve Bank of Atlanta President Raphael Bostic said policymakers need to be cautious not to overtighten monetary policy and risk unnecessary harm to the US labor market. “Based on current dynamics in the macroeconomy, I feel policy is appropriately restrictive.”

China August Manufacturing PMI above expected; 49.7 vs 49.2 consensus; China August Services PMI below expected; 51.0 vs 51.2 consensus.

Japan July preliminary Industrial Production below expected; -2.0% m/m vs. -1.4% consensus; Japan July Retail Sales above expected; +6.8% y/y vs +5.4% consensus.

Euro-area inflation stopped slowing in August, presenting European Central Bank officials with a quandary as they weigh whether pressures are too persistent to risk a pause in interest-rate hiking. Consumer prices rose 5.3% from a year earlier, stuck more than 2 1/2 times above the goal sought by policymakers, because of energy.

The US for the first time approved the transfer of weapons to Taiwan under a program usually reserved for sovereign states, per Bloomberg.

The bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was -1.4 vs -3.6 last week. Bulls rise to 33.1% from 32.3%, Neutrals rise to 32.4% from 31.8%, Bears fall to 34.5% from 35.9%.

Economic Calendar

3:15 AM                   Fed’s Bostic Gives Speech in South Africa 

8:30 AM                   Weekly Jobless Claims 

8:30 AM                   Continuing Claims 

9:00 AM                   Fed’s Collins Speaks on Community Colleges 

9:45 AM                 Chicago PMI for August 

10:30 AM                Weekly EIA Natural Gas Inventory Data 

Other Key Events:

China’s Caixin Manufacturing PMI, Aug-F 

William Blair West Coast Med Tech & Life Sciences Field Trip, 8/28-8/31 in San Diego 

Must read a book about investing – check here

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