Futures Pointing To Modestly Lower Open Ahead Of Powell Speech

[ADVFN]( [WorldDaily Markets Bulletin]( [Daily world financial news]( [Thursday, 27 August 2020 11:02:59]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are pointing to a modestly lower open on Thursday as traders await a highly anticipated speech by Federal Reserve Chair Jerome Powell. Early trading is likely to be driven by reaction to Powell's live-streamed speech at the Jackson Hole economic symposium. Traders are likely to pay close attention to Powell?s upcoming remarks for clues about whether a shift to easier monetary policy is possible in the coming months. Analysts have suggested Powell will signal an increased tolerance for higher inflation, with some predicting he will call for a shift to "average inflation" targeting rather than the long-standing 2 percent target. On the U.S. economic front, the Labor Department recently released a report showing a pullback in first-time claims for U.S. unemployment benefits in the week ended August 22nd. A separate report from the Commerce Department showed U.S. economic activity contracted slightly less than initially estimated in the second quarter, although the report still showed a sharp drop in gross domestic product. Stocks moved significantly higher over the course of the trading session on Wednesday, with the Nasdaq and the S&P 500 reaching new record closing highs. The Dow spent the morning lingering in the red before joining the other major averages in positive territory. While the Dow rose 83.48 points or 0.3 percent to a six-month closing high of 28,331.92, the Nasdaq surged up 198.59 points or 1.7 percent to 11,665.06 and the S&P 500 jumped 35.11 points or 1 percent to 3,478.73. The strength on Wall Street partly reflected optimism about the outlook for the economy after a report from the Commerce Department showed durable goods orders spiked by much more than expected in the month of July. The Commerce Department said durable goods orders skyrocketed by 11.2 percent in July after surging up by a revised 7.7 percent in June. Economists had expected durable goods orders to increase by 4.3 percent compared to the 7.6 percent jump that had been reported for the previous month. The bigger than expected leap in durable goods orders was primarily due to a sharp increase in orders for transportation equipment, which soared by 35.6 percent. Excluding the substantial increase in orders for transportation equipment, durable goods orders rose by a much more modest 2.4 percent in July after climbing by 4.0 percent in June. The increase still exceeded estimates for 2.0 percent growth. The report also said orders for non-defense capital goods excluding aircraft, a reading on business spending, climbed by 1.9 percent in July after surging up by 4.3 percent in June. "With core orders now back close to pre-pandemic levels, the recovery in business equipment investment looks pretty V-shaped to us," said Michael Pearce, Senior U.S. Economist at Capital Economics. Adding to the positive sentiment, biotechnology company Moderna (MRNA) announced promising results from a small trial of its coronavirus vaccine candidate in elderly patients. Moderna told a government advisory committee that its experimental vaccine produced neutralizing antibodies and appeared to be well tolerated. Software stocks turned in some of the market's best performances on the day, with the Dow Jones U.S. Software Index soaring by 4.5 percent to a new record closing high. Newly named Dow component Salesforce.com (CRM) led sector higher, with the business software company spiking by 26 percent after reporting better than expected second quarter results and raising its full-year revenue guidance. Significant strength was also visible among gold stocks, as reflected by the 2.8 percent jump by the NYSE Arca Gold Bugs Index. The rally by gold stocks came amid a sharp increase by the price of the precious metal. Retail stocks also showed a substantial move to the upside on the day, driving the Dow Jones U.S. Retail Index up by 2.4 percent to a record closing high. Urban Outfitters (URBN) and Dick's Sporting Goods (DKS) posted standout gains after reporting much better than expected quarterly results. On the other hand, energy stocks came under pressure over the course of the session despite an uptick by the price of crude oil. Crude for October delivery inched up $0.04 to $43.39 a barrel Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plunged by 3 percent, the NYSE Arca Natural Gas Index tumbled by 2.9 percent and the NYSE Arca Oil Index slumped by 2.1 percent. Airline, utilities and banking stocks also saw considerable weakness on the day, partly offsetting the strength in the aforementioned sectors. --------------------------------------------------------------- [The End Of Capitalism As We Know It?]( Stocks are experiencing wild swings - a Maryland multimillionaire explains how a new moneymaking era is erupting in America, making some wealthy, while leaving many behind... [Click here to know more.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( After reporting an unexpected increase in first-time claims for U.S. unemployment benefits in the previous week, the Labor Department released a report on Thursday showing initial jobless claims pulled back in the week ended August 22nd. The report said initial jobless claims dropped to 1.006 million, a decrease of 98,000 from the previous week?s revised level of 1.104 million. Economists had expected jobless claims to decline to 1.000 million from the 1.106 million originally reported for the previous week. A separate report from the Commerce Department showed U.S. economic activity contracted slightly less than initially estimated in the second quarter, although the report still showed a sharp drop in gross domestic product. The report said real gross domestic product plummeted by 31.7 percent in the second quarter compared to the previously reported 32.9 percent nosedive. Economists had expected the plunge in GDP to be revised to 32.5 percent. The smaller than previously estimated drop in GDP came as private inventory investment and consumer spending decreased less than previously estimated At 10 am ET, the National Association of Realtors is due to release its report on pending home sales in the month of July. Pending home sales are expected to jump by 3.0 percent in July after spiking by 16.6 percent in June. A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale. Richmond Federal Reserve President Thomas Barkin is scheduled to speak to the Maryland Hispanic Chamber of Commerce at 12:30 pm ET. At 1 pm ET, the Treasury Department is due to release the results of its auction of $47 billion worth of seven-year notes. --------------------------------------------------------------- --------------------------------------------------------------- Stocks in Focus Shares of Abbott Laboratories (ABT) are moving sharply higher in pre-market trading after the issued emergency use authorization for its BinaxNOW rapid COVID-19 test. Apparel retailer Abercrombie & Fitch (ANF) is also seeing significant pre-market strength after reporting an unexpected second quarter profit on sales that exceeded analyst estimates. Shares of NetApp (NTAP) are also likely to move to the upside after the storage company reported better than expected fiscal first quarter results. On the other hand, shares of Coty (COTY) are likely to see initial weakness after the cosmetics maker reported a wider than expected fiscal fourth quarter loss. --------------------------------------------------------------- --------------------------------------------------------------- Europe European stocks have moved lower in cautious trading on Thursday trade as U.S.-China tensions over the South China Sea escalate. While the United States blacklisted 24 Chinese firms and targeted individuals it said were part of construction and military actions in the South China Sea, Beijing fired four missiles into the world's most hotly contested body of water, further ratcheting up tensions between the two countries. Traders are also waiting for Fed Chairman Jerome Powell's speech at the annual central bankers' conference for clues about whether a shift to easier policy is possible in the coming months. Analysts expect that Powell will outline dovish measures, including a move toward average inflation targeting in which inflation above the central bank's usual 2 percent target would be tolerated and even desired. The French CAC 40 Index and the German DAX Index are both down by 0.2 percent, although the U.K.?s FTSE 100 Index has bucked the downtrend and is just above the unchanged line. Philips Electronics NV has dipped. The company has signed an agreement to acquire Intact Vascular, Inc., a U.S.-based developer of medical devices for minimally-invasive peripheral vascular procedures. German online takeaway food group Delivery Hero has also fallen after it announced the acquisition of online grocery service InstaShop. Aerospace giant Rolls Royce Holdings has slumped after posting a hefty underlying loss for the half-year ended 30 June 2020. Recruitment company Hays has also moved to the downside after posting lower profits for the full year. On the other hand, Bouygues has jumped. After reporting a first-half net loss, the French industrial group stated that it will return to significant profitability in the second half of 2020, without reaching the particularly high levels of second half 2019. WPP, the world's largest advertising group by sales, has also spiked as it returned to paying dividends after cost cuts and a switch to faster ad production. Grafton Group shares have also surged. The building materials supplier said that it emerged in a strong position from the Covid-19 lockdown and based on current trends the Group expects to deliver a similar level of adjusted operating profit in the second half to the comparable period last year. --------------------------------------------------------------- --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mixed on Thursday as geopolitical concerns returned to the fore and investors waited for Fed Chairman Jerome Powell's speech at the annual central bankers' conference later in the day for clues about whether a shift to easier policy is possible in the coming months. Chinese shares rose even as tensions over the South China Sea escalated, with Beijing firing four missiles into the disputed waterway and the Trump administration adding 24 Chinese companies to a trade blacklist. The benchmark Shanghai Composite Index rose 20.37 points, or 0.6 percent, to 3,350.11, while Hong Kong's Hang Seng Index fell 0.8 percent to 25,281.15. Japanese shares ended a tad lower as U.S.-China tensions over the South China Sea escalated and investors awaited the speech by the Fed chairman. Traders also awaited a press conference by Japanese Prime Minister Shinzo Abe on Friday amid growing concerns about his health. The Nikkei 225 Index slid 82 points, or 0.4 percent, to 23,208.86, while the broader Topix closed 0.5 percent lower at 1,615.89. Exporters ended broadly lower as the safe-haven yen strengthened amid a flare-up in U.S.-China tensions. Oil company Inpex declined 2.5 percent and Japan Petroleum gave up 1.9 percent. East Japan Railway fell 2.6 percent and Tokio Marine Holdings shed 2.2 percent. Australian markets finished slightly higher as Victoria reported its smallest rise in Covid-19 cases in nearly two months. The benchmark S&P/ASX 200 Index edged up 9.80 points, or 0.2 percent, to 6,126.20, while the broader All Ordinaries Index ended up 16.10 points, or 0.3 percent, at 6,310.60. Mining heavyweights BHP and Rio Tinto rose about 1 percent, while smaller rival Fortescue Metals Group rallied 3.1 percent. Gold miners Evolution Mining, Newcrest and Northern Star Resources gained 2-3 percent after gold prices rose to a one-week high. Supermarket giant Woolworths Group climbed 2.8 percent after it reported a rise in annual supermarket sales. Afterpay rose 0.6 percent after the buy-now-pay-later group reported a loss for the full year that narrowed from last year. Beach Energy, Origin Energy and Woodside Petroleum gave up 1-3 percent after crude oil prices ended little changed overnight. The big four banks fell between 0.8 percent and 1.3 percent. Seoul stocks snapped a four-day winning streak after the country's central bank left its key interest rates unchanged at a record low and downgraded its GDP outlook, saying the economic recovery will be slower than previously forecast due to the domestic resurgence of Covid-19. The benchmark Kospi tumbled 1.1 percent to 2,344.45 as the country reported 441 new Covid-19 cases, the largest daily tally since March 7. Hyundai Motor, the country's largest automaker, lost 2.4 percent and top steelmaker POSCO declined 2.3 percent. --------------------------------------------------------------- --------------------------------------------------------------- Commodities Crude oil futures are slipping $0.18 to $43.21 a barrel after inching up $0.04 to $43.39 a barrel on Wednesday. Meanwhile, after soaring $29.40 to $1,952.50 an ounce in the previous session, gold futures are falling $9.80 to $1,942.70 an ounce. On the currency front, the U.S. dollar is trading at 106.06 yen versus the 106.99 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1833 compared to yesterday?s $1.1830. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49