U.S. stock index futures were higher this morning after Beijing's efforts to halt a rout in Chinese stocks finally bore fruit and the U.S. Federal Reserve signaled it might hold off on raising interest rates. Chinese stocks made their biggest daily gain in six years Thursday, restoring confidence in Beijing's suite of attempts to rescue its struggling stock market.
Markets are expected to open higher, as much as one percent.
Here is the current market situation from CNN Money
European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 2.27% while Germany's DAX is up 2.04% and London's FTSE 100 is up 1.37%.
What Is Moving the Markets
Here are the headlines moving the markets. xxxxxxxxxxx
The New York Stock Exchange resumed trading after technical problems forced a halt earlier Wednesday, jarring investors and traders already unnerved by recent volatility across global financial markets.
NEW YORK (AP) — The extreme volatility in China's stock market is ongoing and about half of the 2,800 companies listed in the country's mainline index have suspended trading of their shares.
Markets bounced back strongly Thursday after the Shanghai composite lost another 5.9 percent the previous day, meaning a 30 percent decline since peaking June 12. The impact on Chinese investors is direct, but for investors in the U.S., Europe and elsewhere, it's not as simple.
China's market is largely isolated from other world exchanges, but there are worries the financial damage could hurt the broader Chinese economy, which is the second-largest in the world. Here's what has happened: ___
The market was expecting the weekly initial unemployment claims at 260,000 to 290,000 (consensus 276,000) vs the 297,000 reported. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 275,000 (reported last week as 274,750) to 279,500. The rolling averages generally have been equal to or under 300,000 since August 2014.
FRANKFURT/ATHENS (Reuters) - European Central Bank President Mario Draghi has voiced unprecedented doubts about the chances of rescuing Greece from bankruptcy as Greek Prime Minister Alexis Tsipras was due to put forward last-ditch reform proposals on Thursday.
Earlier this week in "Presenting China's Plunge Protection Playbook," we brought you the following annotated chart, which documents all of the steps Beijing has taken over the last two weeks in a frantic attempt to stabilize its equity markets which are in the midst of an epic meltdown catalyzed by an unwind of the margin mania that helped propel Chinese stocks into the stratosphere over the past 12 months.
That chart was created just two days ago and indeed, China hasn't let up on the plunge protection accelerator one bit since then.
On Wednesday for example, Beijing banned selling by major shareholders and corporate directors and when trading got off to yet another rocky start on Thursday (despite the fact that half the market isn't even trading), the Politburo decided it was time to arrest the slide by literally "arresting" the slide. Here's what happened overnight:
[Ministry of Public Security in conjunction with the recent Commission investigation of malicious short stock and stock index clues ] correspondent was informed on the 9th morning , Vice Minister of Public Security Meng Qingfeng led to the Commission ,
Econintersect: Week 26 of 2015 shows same week and same month total rail traffic (from same week and month one year ago) expanded according to the Association of American Railroads (AAR) traffic data. Intermodal traffic expanded year-over-year, which accounts for half of movements - but weekly railcar counts continued in contraction.
Earlier today, Pepsi did what few companies will do this quarter: beat both the top ($15.9BN, vs exp. $15.8BN) and the bottom line ($1.32, vs Exp. $1.24) without much use of every accounting gimmick under the sun (ahem Alcoa). The cherry on top: it also raised it earnings forecast for the year from 7% to 8%, pushing shares higher 2.2% in premarket trading.
What Pepsi did, unlike all other companies crushed by the soaring dollar, is that while the maker of Pepsi cola, Lay's potato chips and Gatorade was also hurt by weakening currencies, from the euro to the Brazilian real, Pepsi was able to push through price increases to keep revenue stable, while it continued to slash costs: in raising prices while firing people.
There is nothing wrong with that, Capitalism 101.
Solid results. What did catch our atention was Pepsi's brilliant dumbing down of its 10-Q and admission that it knows very well who its main "investor base" is these days, namely "attention-deficited", 17-year-old hedge fund managers (and algos of course), who need a simple, portable story on which to BTFD (or BTFATH).
Because when you know precisely who your New Normal target audience is, this is how you should always lay out your resuts:
(Reuters) - PepsiCo Inc reported better-than-expected quarterly profit and sales and raised its full-year adjusted earnings forecast as higher prices helped drive revenue growth in its beverages business for just the second time in nearly four years.
BEIJING/SHANGHAI (Reuters) - Beijing's increasingly frantic attempts to stem a stock market rout were finally rewarded as Chinese shares bounced around 6 percent on Thursday, but the costs of heavy-handed state intervention are likely to weigh on the market for a long time.
(Reuters) - U.S. stock index futures were higher on Thursday after Beijing's efforts to halt a rout in Chinese stocks finally bore fruit and the U.S. Federal Reserve signaled it might hold off on raising interest rates.
NEW YORK (Reuters) - As the Chinese stock market free-fall shows no signs of stopping, some U.S.-based fund managers said the government's effort to prop up stock values is having the opposite effect, even as some buy at what they consider panic-driven prices.
The federal government ran a budget deficit of $314 billion for the first nine months of fiscal year 2015, CBO estimates. That deficit was $52 billion smaller than the one recorded during the same period last year. Revenues and outlays were both higher than the amounts recorded during the same period in fiscal year 2014 - by 8 percent and 5 percent, respectively.
The Shanghai Composite Index fell 6 percent on July 3, rounding out a 28 percent decline since June 12, when the country's stock markets peaked. The deterioration occurred despite intensive government efforts to stabilize prices and revive investor sentiment.
TOKYO (Reuters) - Honda Motor Co said on Thursday it is recalling about 4.5 million more cars globally to replace air bag inflators made by supplier Takata Corp, the latest move in the Japanese automaker's efforts to deal with a safety scare that has seen firms around the world recall tens of millions of cars.
FRANKFURT (Reuters) - A significant drop in the long-run interest-rate level that marks a sweet spot for a healthy U.S. economy is making it harder for the Federal Reserve to do its job, a top policymaker said on Thursday.
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