Briefing.com

Stock Market Update

Updated: 20-Jul-18

The market at 16:25 ET
Dow: -6.38...
Nasdaq: -5.10... S&P: -2.66...
NYSE Vol: 822.8 mln.. Adv: 1361.. Dec: 1554
Nasdaq Vol: 1.75 bln.. Adv: 1393.. Dec: 1553
Moving the Market Sector Watch


Caution after President Trump says Fed tightening "now hurts all we have done"

President Trump says he is willing to slap tariffs on $500 billion worth of Chinese goods

Microsoft (MSFT) rallies after reporting better-than-expected quarterly results

Financials outperform amid a steepening of the yield curve
Strong: Financials, Technology, Consumer Staples

Weak: Consumer Discretionary, Utilities, Telecom Services, Real Estate
16:25 ET Dow -6.38 at 25058.12, Nasdaq -5.10 at 7820.21, S&P -2.66 at 2801.57

[BRIEFING.COM] Stocks finished a range-bound Friday session little changed, shrugging off potentially rattling comments from President Trump. The S&P 500 and the Nasdaq Composite both lost 0.1%, while the Dow Jones Industrial Average finished unchanged. Friday's stumble left the S&P 500 flat for the week.

In a CNBC interview aired on Friday morning, President Trump said he is ready to put tariffs on $500 billion worth of Chinese goods -- approximately the entire amount of goods shipped to the U.S. from China in 2017. Later, in a tweet, the president doubled down on his criticism of the Fed, saying rate hikes hurt what his administration has accomplished, and reiterated his concern over a strengthening dollar.

The U.S. Dollar Index tumbled 0.8% to 94.20 in response to the president's comments, retreating from a 12-month high.

Microsoft (MSFT 106.27, +1.87) headlined the earnings front, climbing 1.8% on the back of a better-than-expected quarterly report. Its outperformance helped the top-weighted technology sector get off to a good start -- the group was up as much as 0.7% -- but the bullish momentum faded as the day wore on. The tech group finished higher by 0.1%.

Elsewhere on the earnings front, Honeywell (HON 153.13, +5.59) and Capital One (COF 97.23, +1.86) also rallied on better-than-expected results, adding 3.8% and 2.0%, respectively. However, General Electric (GE 13.12, -0.61) declined 4.4% despite beating estimates, and Skechers (SKX 26.27, -6.98) plunged 21.0% after missing estimates and issuing disappointing guidance.

The consumer staples sector (+0.6%) was the top-performing group on Friday, and financials (+0.2%) eked out a slim victory. Meanwhile, eight of the eleven sectors finished in the red, with utilities (-0.8%) and real estate (-0.9%) being the weakest performers. No other space lost more than 0.5%.

In the bond market, Treasuries sold off in a curve-steepening trade, with the 2-yr yield climbing one basis point to 2.60% and the 10-yr yield climbing five basis points to 2.90%. Some analysts saw the increased 2-10 spread as a sign that investors believe President Trump's criticism of the Fed could slow down the pace of rate hikes.

The S&P 500 tested the 2800 level several times on Friday, but it held through each attempt, with the low of the day coming in at 2800.01.

Investors did not receive any economic data on Friday. Looking ahead, Existing Home Sales for June is the lone release on Monday.

  • Nasdaq Composite +13.3% YTD
  • Russell 2000 +10.5% YTD
  • S&P 500 +4.8% YTD
  • Dow Jones Industrial Average +1.4% YTD

Week In Review: Investors Shrug Off Headline-Heavy Week

There were a heap of headlines out of Washington this week, but Wall Street kept its cool, finishing little changed. The S&P 500 finished flat, while the Dow Jones Industrial Average finished a tick higher (+0.2%), and the Nasdaq Composite finished a tick lower (-0.1%). The small-cap Russell 2000 outperformed, rallying 0.6%.

President Trump capped a week-long trip to Europe on Monday by meeting with Russian president Vladimir Putin in Helsinki, Finland. The leaders met for roughly four hours, discussing a wide range of topics, including arms control, the future of Syria, and, of course, Russian interference in the 2016 U.S. election, which Mr. Putin again denied.

Mr. Trump faced criticism for appearing to reject his own intelligence agencies' conclusion that Russia meddled in the election in favor of Mr. Putin's plea of innocence. President Trump later clarified his remarks, replacing the word would with wouldn't in the following statement referring to Russian interference: "I don't see any reason why it would be [Russia]."

On to U.S.-China trade relations, NEC Director Larry Kudlow said on Wednesday that he believes some lower-ranking Chinese officials would like to reach a trade deal, but Chinese President Xi is refusing to compromise. China's foreign ministry responded to Mr. Kudlow's comment, calling it "shocking" and "bogus."

Back to Mr. Trump, the president did an exclusive interview with CNBC on Thursday in which he criticized the Fed, saying he's "not thrilled" about interest rate hikes, and said he is willing to slap tariffs on $500 billion worth of Chinese goods -- virtually every Chinese product coming into the U.S. -- if necessary. Mr. Trump also commented on the strengthening dollar, saying it puts the U.S. at a disadvantage.

The president followed up that interview with a tweet on Friday, saying "China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge...Tightening now hurts all that we have done."

Mr. Trump's comments on the Fed were particularly controversial as presidents typically refrain from speaking on monetary policy in an effort to protect the Fed's independence. The White House issued a follow-up statement after the CNBC clip aired on Thursday, clarifying that Mr. Trump respects the Fed's independence.

On a separate -- but related -- note, Fed Chair Jerome Powell gave Congress his semiannual update on the economy and monetary policy, speaking before both the Senate Banking Committee and the House Financial Services Committee. Mr. Powell's testimony provided no new information; he simply reinforced the view that improving economic conditions should allow the Fed to continue hiking rates gradually.

Whew. With all of that in mind, let's turn away from Washington and towards this week's trading on Wall Street.

The second quarter earnings season heated up this week with several influential names reporting their latest results. Netflix (NFLX) dropped sharply on Tuesday -- although shares did rebound notably intraday -- after the streaming media company missed subscriber growth estimates. Ahead of earnings, Netflix was up more than 100% on the year.

Fellow tech names Microsoft (MSFT), IBM (IBM), and eBay (EBAY) also reported their quarterly results this week. Microsoft and IBM rallied after beating earnings estimates, but eBay tumbled after reporting below-consensus results. The top-weighted technology sector finished the week with a gain of 0.1%, extending its yearly advance to 15.4%.

Several financial giants also reported earnings this week, including Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS), all of which topped estimates. The positive results helped the heavily-weighted financial sector climb 2.2% and finish atop the week's sector standings.

In other corporate news, Comcast (CMSA) said it will not counter Disney's (DIS) offer for 21st Century Fox's (FOXA) entertainment assets, and Amazon (AMZN) held its annual Prime Day, saying the 36-hour special was its biggest shopping event ever -- even despite having to deal with some technical glitches.

Energy was the worst-performing sector this week, losing 1.9%, as crude oil extended last week's tumble; WTI crude futures dropped 3.9% to $68.23/bbl and are now 8.0% below the nearly three-and-a-half year high they've touched several times this month. Fears that the U.S. may give some countries waivers to continue buying oil from Iran was one of several factors weighing on the commodity.

..NYSE Adv/Dec 1361/1554. ..NASDAQ Adv/Dec 1393/1553.
15:40 ET Dow -3.26 at 25061.24, Nasdaq -5.75 at 7819.56, S&P -2.52 at 2801.71
[BRIEFING.COM]
  • Energy Settlement Prices:
    • Sept Crude Oil futures fell $0.01 (-0.01%) to $68.23/barrel
    • August Natural Gas settled $0.01 lower (-0.36%) at $2.76/MMBtu
    • July RBOB Gasoline settled $0.03 higher (1.47%) at $2.07/gallon
    • July Heating oil futures settled $0.02 higher (0.96%) at $2.11/gallon
  • Agriculture Settlement Prices:
    • Sept corn settled $0.04 higher at $3.55/bushel
    • Sept wheat settled $0.13 higher at $5.16/bushelA
    • Aug soybeans settled $0.03 higher at $8.50/bushel
  • Metals Settlement Prices:
    • Aug gold settled today's session up $7.30 (0.6%) at $1231.40/oz
    • Sept silver settled today's session $0.06 higher (1.04%) at $15.56/oz
    • Sept copper settled $0.06 higher (2.22%) at $2.76/lb
..NYSE Adv/Dec 1369/1551. ..NASDAQ Adv/Dec 1471/1481.
15:00 ET Dow +7.05 at 25071.55, Nasdaq +1.69 at 7827, S&P -0.76 at 2803.47

[BRIEFING.COM] The S&P 500 has slipped a tick beneath its flat line in recent trading, struggling to hold on to a slim gain for the week.

Financials (+2.3% WTD) and industrials (+1.0% WTD) are atop this week's sector standings and the only two groups with a notable gain. On the flip side, energy (-1.9% WTD), telecom services (-1.7% WTD), and real estate (-1.5% WTD) are the worst performing groups. The six remaining sectors hold gains/losses of no more than 0.8%.

WTI crude futures wrapped up the week with a flat performance on Friday, finishing unchanged at $68.23 per barrel, to secure a 3.9% loss for the week.

..NYSE Adv/Dec 1340/1533. ..NASDAQ Adv/Dec 1424/1390.
14:25 ET Dow +6.40 at 25070.9, Nasdaq +7.24 at 7832.55, S&P +0.39 at 2804.62

[BRIEFING.COM] The broader market remains higher across the board on Friday afternoon as the Nasdaq Composite holds gains of 0.1%.

Only four of the S&P 500 sectors hold their head above water on Friday. Action in the information technology and financial groups has been widely covered today; the sectors which can't manage to follow the broader market higher today include the utilities (-0.9%), energy (-0.3%), and consumer discretionary (-0.3%) groups. Utilities, which often trade in tandem with bond prices, sink on Friday with constituents NextEra Energy (NEE 169.66, -0.59, -0.4%), Duke Energy (DUK 80.56, -0.64, -0.8%), and Dominion Energy (D 71.34, -0.66, -0.9%) underperforming.

Weakness in the exploration & production sector has pressured the energy group today as E&P bellwethers Concho Resources (CXO 144.79, -3.48, -2.4%) and Diamondback Energy (FANG 131.86, -0.23, -0.2%) underperform. The Oil & Gas E&P SPDR ETF (XOP 42.57, -0.10) loses about 0.2% today, taking its five-session move to about -1.6%.

Losses in the consumer discretionary space are widespread again on Friday with Comcast (CMCSA 34.47, -0.44, -1.3%), Lowe's (LOW 100.59, -0.80, -0.8%), and Ford (F 10.53, -0.13, -1.3%) displaying particular weakness. Comcast is weaker today despite being added to Jefferies Franchise Pick List. Next week, investors should expect quarterly results from automaker Ford on Wednesday night. Also next week, on Tuesday, investors will receive their quarterly dividend payment for home improvement chain Lowe's.

..NYSE Adv/Dec 1364/1520. ..NASDAQ Adv/Dec 1473/1313.
14:00 ET Dow +4.54 at 25069.04, Nasdaq +15.00 at 7840.31, S&P +0.53 at 2804.76

[BRIEFING.COM] The Nasdaq Composite touched a session low about 30 minutes ago, but is off those levels now on gains of 0.2%.

Gold futures trimmed their weekly losses on Friday, settling 0.6% higher at $1,231.10/oz to leave its five-session losses at about 0.8%. The yellow metal has been reeling this week as recent strength in the dollar, which saw the U.S. Dollar Index nab 2018 highs yesterday, left gold at 2018 lows yesterday.

Today then, the U.S. Dollar Index sheds about 0.7% at 94.50, pressured in part by comments from President Donald Trump about his concerns over a strong dollar.

..NYSE Adv/Dec 1405/1471. ..NASDAQ Adv/Dec 1531/1246.
13:35 ET Dow +22.30 at 25086.8, Nasdaq +14.20 at 7839.51, S&P +1.13 at 2805.36

[BRIEFING.COM] The major U.S. indices are holding tight with small gains as the trading week winds down. 

A look inside the Dow Jones Industrial Average shows that Microsoft (MSFT 106.72, +2.32), JP Morgan (JPM 111.64, +1.75), & Goldman Sachs (GS 231.32, +1.69) are outperforming. Microsoft is leading the Dow higher, and at fresh all time highs after reporting a fiscal fourth quarter top and bottom-line beat and giving upside first quarter revenue projections. Elsewhere, Goldman & JP Morgan are advancing as financials display relative strength.

Conversely, IBM (IBM 146.59, -2.65) is the worst-performing Dow component as shares pullback in the wake of yesterday's earnings-driven rally. 

At current levels, the DJIA is poised to end with week with gains of 0.15%. 

..NYSE Adv/Dec 1384/1469. ..NASDAQ Adv/Dec 1497/1276.
12:55 ET Dow +30.20 at 25094.7, Nasdaq +15.58 at 7840.89, S&P +2.29 at 2806.52

[BRIEFING.COM] Stocks are a tick higher this afternoon after overcoming a slightly lower start to today's session.

The S&P 500 is up 0.1% and has found support at the 2800 mark, which it tested in the opening minutes of today's session after doing the same thing on Thursday. The tech-heavy Nasdaq was outperforming earlier, up as much as 0.5%, but has since weakened, now up just 0.2%. The Dow is up 0.1%.

Microsoft (MSFT 106.63, +2.22) is on course for a new record close after reporting better-than-expected earnings on Thursday evening, but has reduced its gain from 3.6% to 2.1%. The top-weighted tech sector has similarly weakened, going from +0.7% to +0.2%. Only three other groups -- financials (+0.4%), industrials (+0.2%), and consumer staples (+0.5%) -- are in the green.

The financial sector has benefited from a steeping of the yield curve, with the 2-10 spread climbing four basis points to 30 bps. Meanwhile, in the industrial sector, a positive reaction to Honeywell's (HON 153.38, +5.83, +3.9%) earnings has helped overcome a negative reaction to General Electric's (GE 13.12,- 0.61, -4.4%).

On the downside, seven groups are in the red, with utilities (-0.8%) and real estate (-0.7%) pacing the retreat.

President Trump has dominated the news networks again today after saying in an interview with CNBC that he is willing to impose tariffs on $500 billion worth of Chinese goods -- or approximately every Chinese product coming into the United States. The president also doubled down on his criticism of the Federal Reserve and reiterated his concern over a strengthening dollar in a tweet.

The U.S. Dollar Index (-0.6%, 94.38) tumbled as a result, retreating from a 12-month high.

In addition, the Treasury market has moved in response to Mr. Trump's comments. The yield on the 10-yr note is up four basis points at 2.89% while the 2-yr yield remains flat at 2.59%, implying that bond investors are giving some credibility to the notation that the Fed will be more dovish in response to the president's remarks.

Investors did not receive any economic data on Friday.

..NYSE Adv/Dec 1450/1395. ..NASDAQ Adv/Dec 1488/1242.
12:25 ET Dow +32.26 at 25096.76, Nasdaq +10.92 at 7836.23, S&P +1.63 at 2805.86

[BRIEFING.COM] Equity indices continue to trade in a tight range, hovering a tick above their unchanged marks.

Four of eleven sectors in the green -- financials (+0.3%), industrials (+0.1%), technology (+0.3%), and consumer staples (+0.5%) -- six are in the red -- consumer discretionary (-0.1%), energy (-0.4%), materials (-0.1%), health care (-0.2%), utilities (-0.6%), and real estate (-0.6%) -- and one is flat -- telecoms.

In the bond market, U.S. Treasuries are selling off in a curve-steepening trade; the yield on the benchmark 10-yr Treasury note is up three basis points at 2.88%, while the 2-yr yield is unchanged at 2.59%. That increases the 2-10 spread, which was at its lowest level in over a decade, to 29 basis points.

..NYSE Adv/Dec 1430/1389. ..NASDAQ Adv/Dec 1451/1261.
11:55 ET Dow +40.86 at 25105.36, Nasdaq +20.26 at 7845.57, S&P +3.09 at 2807.32

[BRIEFING.COM] Equities haven't moved much since the last update. The S&P 500 (+0.1%) and the Dow (+0.2%) are still a tick higher, led by the tech-heavy Nasdaq (+0.3%).

Shares of Skechers USA (SKX 25.51, -7.74) have plunged 23.0% today, hitting a nine-month low, after the shoemaker reported worse-than-expected profits for the second quarter on Thursday evening. The company also issued below-consensus earnings and revenue guidance for the third quarter -- which overlaps with the back-to-school season.

In Europe, the major bourses ended Friday on a lower note; the UK's FTSE lost 0.1%, France's CAC lost 0.4%, and Germany's DAX lost 0.9%. The Euro Stoxx 50 dropped 0.3% on Friday, trimming its gain for the week to 0.2%.

..NYSE Adv/Dec 1343/1465. ..NASDAQ Adv/Dec 1404/1276.
11:30 ET Dow +37.29 at 25101.79, Nasdaq +30.63 at 7855.94, S&P +3.47 at 2807.7

[BRIEFING.COM] Stocks are now slightly higher, rebounding from a modestly lower start. The S&P 500 is up 0.1%.

The 2800 level has been an area of support for the S&P 500 recently. The benchmark index tested that level in early trading on Thursday and did the same thing once again today, getting as low as 2801 before bouncing back. The S&P 500 is currently hovering at 2808, about nine points below this week's high.

Elsewhere, the U.S. Dollar Index is down 0.7% at 94.34 after hitting a 12-month high on Thursday. The drop in the dollar follows an interview, and a tweet, from President Trump, in which he expressed concerns over a strengthening dollar, which he believes puts the U.S. at a disadvantage.

..NYSE Adv/Dec 1275/1488. ..NASDAQ Adv/Dec 1406/1265.
11:00 ET Dow +16.44 at 25080.94, Nasdaq +26.31 at 7851.62, S&P +1.07 at 2805.3

[BRIEFING.COM] Trading has been somewhat choppy today, but the major averages remain little changed. The S&P 500 is flat, while the tech-heavy Nasdaq is up 0.4%.

The information technology sector (+0.5%) is doing the heavily lifting today, as it's one of just two groups with a notable gain; the other is consumer staples (+0.4%). The tech rally is being led by Microsoft (MSFT 107.17, +2.78, +2.7%), which has touched a new all-time high after reporting better-than-expected earnings.

On the down side, the lightly-weighted utilities (-1.2%) and real estate (-1.2%) sectors are easily the worst-performing groups, but their impact is minimal as they represent just around 5.0% of the broader market combined. For comparison, the tech space represents around 25% by itself.

..NYSE Adv/Dec 1174/1568. ..NASDAQ Adv/Dec 1365/1304.
10:30 ET Dow +11.37 at 25075.87, Nasdaq +20.78 at 7846.09, S&P +0.46 at 2804.69
[BRIEFING.COM]
  • Commodities are starting the day off higher
    • Overall, commodities, as measured by the Bloomberg Commodity Index, are currently +0.5% at 83.52
  • Dollar index is currently -0.7% at 94.35
  • Looking at energy...
    • Sept WTI crude oil futures are now -$0.24 at $68.00/barrel
    • In other energy, Aug natural gas is -$0.01 at $2.76/MMBtu
  • Moving on to metals...
    • Aug gold is currently +$5.60 at $1229.60/oz, while Sept silver is +$0.01 at $15.96/oz
    • Sept copper is now +$0.05 at $2.75/lb
..NYSE Adv/Dec 1220/1482. ..NASDAQ Adv/Dec 1410/1286.
10:00 ET Dow -17.85 at 25046.65, Nasdaq +18.28 at 7843.59, S&P -0.36 at 2803.87

[BRIEFING.COM] Equity indices have ticked up since the opening, with the S&P 500 now flat.

On the earnings front, Microsoft (MSFT 107.19, +2.80, +2.7%), Honeywell (HON 151.19, +3.65, +2.5%), and Capital One (COF 98.57, +3.20, +3.4%) are all higher after releasing their quarterly results, while General Electric (GE 13.19, -0.53, -4.0%) is solidly lower. Shoe maker Skechers (SKX 25.07, -8.16) has plunged 24.5% after missing profit estimates and issuing below-consensus guidance for Q3.

Elsewhere, the U.S. Dollar Index is down 0.6%, retreating from yesterday's 12-month high, after President Trump criticized the dollar's recent rally; the U.S. Dollar Index has advanced nearly 6.0% since mid-April.

..NYSE Adv/Dec 1213/1392. ..NASDAQ Adv/Dec 1422/1131.
09:40 ET Dow -51.49 at 25013.01, Nasdaq +13.48 at 7838.79, S&P -1.28 at 2802.95

[BRIEFING.COM] The major averages are roughly flat in the opening minutes, with the S&P 500 down 0.1% and the tech-heavy Nasdaq up 0.2%.

Most sectors are in the red, but the top-weighted information technology group (+0.3%) is outperforming. The tech sector is being led by Microsoft (MSFT 107.45, +3.06), which is up 3.1% after reporting better-than-expected earnings. The materials sector (-0.7%) is the weakest group, but most decliners are down less than 0.5%.

In the bond market, U.S. Treasuries are flat to slightly lower, pushing the benchmark 10-yr yield up one basis point to 2.86%.

..NYSE Adv/Dec 1118/1371. ..NASDAQ Adv/Dec 1250/1213.
09:14 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -7.30. Nasdaq futures vs fair value: +6.50.

The stock market is on track for a lower open, as the S&P 500 futures are trading seven points, or 0.3%, below fair value.

Futures ticked lower in recent action following a tweet from President Trump, in which he said "China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge...Tightening now hurts all we have done."

Before that, investors were digesting a CNBC interview in which Mr. Trump said he is willing to slap tariffs on $500 billion worth of Chinese goods if necessary. When asked about the possibility of the stock market falling due to the increased duties, Mr. Trump appeared indifferent, saying "if it does, it does."

In earnings news, Microsoft (MSFT 107.43, +3.03, +2.9%), General Electric (GE 13.68, -0.05, -0.4%), and Honeywell (HON 151.50, +3.96, +2.7%) are mixed in pre-market trading after reporting above-consensus quarterly results. Meanwhile, Sketchers (SKX 23.95, -9.30, -28.0%) is down big after missing profit estimates and issuing below-consensus guidance.

Elsewhere, the U.S. Dollar Index is down 0.6% at 94.42, retreating from a 12-month high, following President Trump's comments; U.S. Treasuries are flat to slightly lower, pushing the benchmark 10-yr yield up one basis point to 2.86%; and WTI crude futures are up 0.3% at $68.45 per barrel.

Investors will not receive any notable economic reports today.

09:00 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: +5.30.

The S&P 500 futures are trading nine points, or 0.3%, below fair value.

Equity indices in the Asia-Pacific region ended the week on a mixed note. The People's Bank of China fixed the yuan at a lower level for the seventh consecutive session and China Securities Times noted that the People's Bank of China will keep a loose bias during the second half of 2018. Meanwhile President Trump said that he is ready to impose tariffs on all imports from China. The comments were made during a CNBC interview, which aired this morning. Bangko Sentral ng Pilipinas Governor Nestor Espenilla said the central bank is considering a "strong" monetary adjustment at the August meeting. Elsewhere, Malaysia's Finance Ministry now expects 2018 GDP growth will slow to 5.0% from 5.9% reported in 2017.

  • In economic data:
    • Japan's June National CPI +0.1% month-over-month (last 0.1%); +0.7% year-over-year (expected 0.8%; last 0.7%). National Core CPI +0.8% year-over-year, as expected (last 0.7%). All Industry Activity Index +0.1% month-over-month (expected 0.0%; last 1.0%)
    • South Korea's June PPI 0.0% month-over-month (last 0.3%); +2.6% year-over-year (last 2.2%)
    • New Zealand's June External Migration & Visitors -7.8% year-over-year (last 2.4%) and Credit Card Spending +5.7% year-over-year (last 3.7%)

---Equity Markets---

  • Japan's Nikkei lost 0.3%, narrowing this week's gain to 0.4%. Dentsu, SUMCO, Furukawa, Furukawa Electric, Nikon, Dainippon Screen Manufacturing, Komatsu, Okuma, Yamaha Motor, and Kyocera lost between 1.7% and 6.8%.
  • Hong Kong's Hang Seng hit a fresh 2018 low, but recovered to end higher by 0.8%. The index lost 1.1% for the week. Apple suppliers Sunny Optical Tech and AAC Technologies lost 2.9% and 1.6%, respectively, while property names were mixed. China Resources Land and China Overseas both lost near 0.6% while SHK Properties, Hang Lung Properties, and Sino Land gained between 0.7% and 1.7%.
  • China's Shanghai Composite jumped 2.1% to end the week little changed. Baoji Titanium Industry, Inspur Software, China Merchants Bank, AVIC Capital, and Fujian Start Group rallied between 4.9% and 9.9%.
  • India's Sensex added 0.4%, gaining 2.4% for the week. Sun Pharma, Infosys, Reliance Industries, ICICI Bank, AXIS Bank, and Tata Steel advanced between 0.7% and 2.7%. Bajaj Auto lost 8.7% after missing profit expectations.

Major European indices trade in negative territory. Italian debt retreated after La Repubblica reported that Italy's Finance Minister Giovanni Tria has faced pressure to resign due to a disagreement over who should be appointed to lead state fund Cassa Depositi e Prestiti. However, recent reports noted that an agreement on the appointment has been reached. Italy's head of the budget committee in the Lower House Claudio Borghi said it is too soon to say who will receive Italy's support to replace Mario Draghi at the European Central Bank, but added that Jens Weidman's hawkish ideology could hasten European disintegration.

  • In economic data:
    • Eurozone May Current Account surplus EUR22.40 billion (expected EUR27.20 billion; last EUR29.60 billion)
    • Germany's June PPI +0.3% month-over-month, as expected (last 0.5%); +3.0% year-over-year (expected 2.9%; last 2.7%)
    • UK's June Public Sector Net Borrowing GBP4.53 billion (expected GBP3.50 billion; last GBP3.85 billion)
    • Spain's trade deficit EUR2.15 billion (last deficit of EUR3.10 billion)

---Equity Markets---

  • UK's FTSE is lower by 0.4%. Miners and consumer names are among the laggards with BHP Billiton, Anglo American, Kingfisher, Taylor Wimpey, Associated British Foods, Dixons Carphone, Provident Financial, Next, and Marks & Spencer show losses between 0.4% and 3.9%.
  • Germany's DAX is down 1.5%. Volkswagen, Lufthansa, BMW, Daimler, BASF, Deutsche Bank, and Siemens hold losses between 1.7% and 3.7%. On the upside, RWE, Merck, and Beiersdorf AG are up between 0.2% and 0.9%.
  • France's CAC trades lower by 1.1%. Peugeot is the weakest performer, falling 3.5%, while ArcelorMittal, TechnipFMC, Renault, Total, Michelin, Kering, and Credit Agricole have given up between 1.4% and 3.4%.
08:28 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -5.80. Nasdaq futures vs fair value: +11.00.

The S&P 500 futures are trading six points, or 0.2%, below fair value.

Financials (+2.0%) and industrials (+1.0%) are atop this week's sector standings and the only groups holding notable gains. Meanwhile, the energy (-1.5%) and telecom services (-1.4%) sectors are at the back of the pack and the only groups down more than 0.6%. Most sectors are within 0.5% of their unchanged marks.

The S&P 500 is up 0.1% week-to-date; the Dow is higher by 0.2%; and the Nasdaq is flat.

07:57 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: +19.50.

Stocks stumbled on Thursday and look ready to give back the remainder of their slim weekly gains at the opening bell.

The S&P 500 and the Dow futures are down 0.1% and 0.3%, respectively, after President Trump said he's ready to put tariffs on every Chinese good coming into the United States. The tech-heavy Nasdaq futures are up 0.2%, however, following upbeat earnings from Microsoft (MSFT), which is up 3.3% in pre-market trading.

In a recorded interview with CNBC that was aired earlier this morning, President Trump said he is willing to slap tariffs on $500 billion worth of Chinese goods if necessary. When asked about the possibility of the stock market falling due to the increased duties, Mr. Trump appeared indifferent, saying "if it does, it does."

Mr. Trump also touched on the Federal Reserve in the same interview, saying he's "not thrilled" about interest rate hikes, and on the strengthening dollar, which he said puts the U.S. at a disadvantage. However, the clip containing that material was released yesterday afternoon.

The U.S. Dollar Index is down 0.2% today, slipping from a 12-month high, despite the People's Bank of China fixing the yuan at a lower level for a seventh straight session. The yuan is currently down 0.3% against the U.S. dollar at 6.7911, its lowest level since July 2017, and has now tumbled 6.1% since June 13.

Elsewhere, U.S. Treasuries are roughly flat, with the benchmark 10-yr yield unchanged at 2.85%; West Texas Intermediate crude futures are down 0.1% at $68.19 per barrel, extending their weekly losses to 4.0%; and the CBOE Volatility Index is up 3.3% at 13.30, its highest level this week.

Investors will not receive any notable economic reports today.

In U.S. corporate news:

  • Microsoft (MSFT 107.87, +3.47): +3.3% after reporting better-than-expected earnings and revenues.
  • General Electric (GE 13.93, +0.20): +1.3% after beating both top and bottom line estimates.
  • Honeywell (HON 150.00, +2.46): +1.7% after reporting above-consensus earnings and revenues and issuing upbeat guidance.
  • Skechers (SKX 24.68, -8.57): -25.8% after missing profit estimates and issuing below-consensus guidance for Q3.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei -0.3%, Hong Kong's Hang Seng +0.8%, China's Shanghai Composite +2.1%, India's Sensex +0.4%.
    • In economic data:
      • Japan's June National CPI +0.1% month-over-month (last 0.1%); +0.7% year-over-year (expected 0.8%; last 0.7%). National Core CPI +0.8% year-over-year, as expected (last 0.7%). All Industry Activity Index +0.1% month-over-month (expected 0.0%; last 1.0%)
      • South Korea's June PPI 0.0% month-over-month (last 0.3%); +2.6% year-over-year (last 2.2%)
      • New Zealand's June External Migration & Visitors -7.8% year-over-year (last 2.4%) and Credit Card Spending +5.7% year-over-year (last 3.7%)
    • In news:
      • The People's Bank of China fixed the yuan at a lower level for the seventh consecutive session and China Securities Times noted that the People's Bank of China will keep a loose bias during the second half of 2018.
      • President Trump said that he is ready to impose tariffs on all imports from China. The comments were made during a CNBC interview, which aired this morning.
      • Bangko Sentral ng Pilipinas Governor Nestor Espenilla said the central bank is considering a "strong" monetary adjustment at the August meeting.
      • Malaysia's Finance Ministry now expects 2018 GDP growth will slow to 5.0% from 5.9% reported in 2017.
  • Major European indices trade in negative territory. UK's FTSE -0.3%, Germany's DAX -0.5%, France's CAC -0.5%.
    • In economic data:
      • Eurozone May Current Account surplus EUR22.40 billion (expected EUR27.20 billion; last EUR29.60 billion)
      • Germany's June PPI +0.3% month-over-month, as expected (last 0.5%); +3.0% year-over-year (expected 2.9%; last 2.7%)
      • UK's June Public Sector Net Borrowing GBP4.53 billion (expected GBP3.50 billion; last GBP3.85 billion)
      • Spain's trade deficit EUR2.15 billion (last deficit of EUR3.10 billion)
    • In news:
      • Italian debt retreated after La Repubblica reported that Italy's Finance Minister Giovanni Tria has faced pressure to resign due to a disagreement over who should be appointed to lead state fund Cassa Depositi e Prestiti. However, recent reports noted that an agreement on the appointment has been reached.
      • Italy's head of the budget committee in the Lower House Claudio Borghi said it is too soon to say who will receive Italy's support to replace Mario Draghi at the European Central Bank, but added that Jens Weidman's hawkish ideology could hasten European disintegration.
07:30 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: +18.00.
06:57 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -7.00. Nasdaq futures vs fair value: +10.30.
06:57 ET Market is Closed
[BRIEFING.COM] Nikkei...22698...-66.80...-0.30%.  Hang Seng...28224.5...+213.60...+0.80%.
06:57 ET Market is Closed
[BRIEFING.COM] FTSE...7654.88...-29.10...-0.40%.  DAX...12588.17...-98.10...-0.80%.
16:25 ET Dow -134.79 at 25064.5, Nasdaq -29.15 at 7825.31, S&P -11.13 at 2804.23

[BRIEFING.COM] U.S. equities stumbled on Thursday, breaking a five-session winning streak for the Dow Jones Industrial Average, which finished with a loss of 0.5%. The S&P 500 and the Nasdaq Composite declined as well, losing 0.4% apiece, but the small-cap Russell 2000 managed to advance, adding 0.6%.

Trading was choppy at times, but much of the day was spent in a sideways trend. The S&P 500 traded between 2812.05 (-0.1%) and 2799.77 (-0.6%).

Investors received a heavy dose of corporate news, most of which was earnings related. IBM (IBM 149.24, +4.72, +3.3%) and Taiwan Semi (TSM 39.81, +1.40, +3.6%) climbed after reporting their quarterly results, but American Express (AXP 100.17, -2.81, -2.7%), eBay (EBAY 34.11, -3.84, -10.1%), Travelers (TRV 125.18, -4.82, -3.7%), BNY Mellon (BK 52.73, -2.91, -5.2%), Philip Morris (PM 80.90, -1.25, -1.5%), and Alcoa (AA 41.56, -6.40, -13.3%) all sold off.

Outside of earnings, Walt Disney (DIS 112.13, +1.44, +1.3%) rallied following news that Comcast (CMSA 34.91, +0.87, +2.6%) will not counter Disney's offer for 21st Century Fox's (FOXA 46.65, -0.03, -0.1%) entertainment assets. Conversely, AbbVie (ABBV 89.95, -4.45, -4.7%) fell after Citron Research called it "the next great drug short."

Nine of eleven sectors finished Thursday in the red, with financials (-1.4%) pacing the retreat, trimming its weekly gain to a still impressive 2.0%. The telecom services space (-1.1%) was the next-worst performer, but no other group lost more than 0.6%. On the flip side, utilities (+0.9%) and real estate (+1.0%) were the two advancers.

U.S. Treasuries rallied on Thursday, pushing yields lower across the curve; the benchmark 10-yr yield dropped three basis points to 2.85%.

In Washington, President Trump criticized the Fed in a recorded CNBC interview, saying he's "not thrilled" about interest rate hikes. Mr. Trump's comments were seen as controversial as presidents typically refrain from speaking on monetary policy. The White House quickly issued a response to the criticism, saying the president respects the Fed's independence.

During the same interview, Mr. Trump also commented on the strengthening dollar, saying it puts the U.S. at a disadvantage. The U.S. Dollar Index was up 0.4% at a 12-month high before the president's comments, but gave it all back and then some in a knee-jerk response. The Index was back in the green at Wall Street's closing bell, however, up 0.2% at 95.00.

Trade-related matters were also on radar after President Trump threatened "tremendous retribution" against the European Union if his meeting with EU officials next week doesn't produce positive results. Separately, China's foreign ministry responded to Wednesday comments made by NEC Director Larry Kudlow, saying Mr. Kudlow's assertion that Chinese President Xi is refusing to compromise on Beijing's trade policies was "shocking" and "bogus."

With today's losses, the S&P 500 enters Friday's session with a slim weekly gain of 0.1%.

Reviewing Thursday's economic data, which included weekly Initial Claims, the Philadelphia Fed Index for July, and the Conference Board's Leading Economic Index for June:

  • The latest weekly initial jobless claims count totaled 207,000, while the Briefing.com consensus expected a reading of 220,000. Today's tally was below the revised prior week count of 215,000 (from 214,000). As for continuing claims, they increased to 1.751 million from a revised count of 1.743 million (from 1.739 million).
    • The key takeaway from this report is that it covers the period in which the survey for the employment situation report for July is conducted, so the low level of claims is bound to feed expectations for another month of strong nonfarm payrolls growth.
  • The Philadelphia Fed Survey for July rose to 25.7 (Briefing.com consensus 22.0) from an unrevised 19.9 in June.
    • The key takeaway from the report, though, may be that the diffusion index for future general activity decreased for the fourth straight month, falling from 34.8 to 29.0.
  • The Conference Board's Leading Economic Index increased 0.5% in June (Briefing.com consensus +0.4%), and the May reading was revised to 0.0% from +0.2%.
    • The key takeaway from the report is that strength among the leading indicators remained widespread; however, the 2.5% increase in the index over the first half of 2018 was slower than the 3.2% growth rate seen over the second half of 2017.

Looking ahead, investors will not receive any economic data on Friday.

  • Nasdaq Composite +13.4% YTD
  • Russell 2000 +10.8% YTD
  • S&P 500 +4.9% YTD
  • Dow Jones Industrial Average +1.4% YTD
..NYSE Adv/Dec 1757/1169. ..NASDAQ Adv/Dec 1565/1334.

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