US stock future indexes are down and slipping (SPY -0.2%) after the disappointing GDP report. The US GDP for the second quarter came in below what economists expected (-0.6%) and the US dollar dropped like a rock going below the 96 handle, while crude and gold remained steady. Merck topped analysts estimate this morning, while United Parcel matched its estimate.
Here is the current market situation from CNN Money
European markets are mixed today. The DAX is up 0.19% while the CAC 40 gains 0.09%. The FTSE 100 is off 0.18%.
LONDON (Reuters) - The yen jumped on Friday and Japanese government bond yields rose the most in eight years, lifting global sovereign borrowing costs, after the Bank of Japan's latest steps to boost growth and inflation fell short of investor expectations.
WASHINGTON (Reuters) - The U.S. economy grew far less than expected in the second quarter as inventories fell for the first time since 2011, but a surge in consumer spending pointed to underlying strength.
BRUSSELS (Reuters) - Economic growth in the euro zone slowed in the second quarter as uncertainty before the British vote to leave the European Union swirled, data showed on Friday, and economists said it could be a sign of future weaker growth.
(Reuters) - Oil analysts still expect a rise in the crude price this year, thanks to improving demand growth that should help offset any bearish headwinds from a stubborn supply surplus, a Reuters poll showed on Friday.
BRUSSELS/BEIJING (Reuters) - Brewer Anheuser-Busch InBev cleared a major hurdle toward its takeover of SABMiller with regulatory approval from China on Friday, leaving the acquisition's future in the hands of the British company's board.
But, but, but the dividend yield, the oil recovery? ExxonMobil is down almost 3% in the pre-market to 2-month lows as it misses earnings expectations drastically (+41c vs 64c exp.. below the lowest expectation of +55c). Production levels also missed expectations as it appears the oil glut has trickled down to motor fuels, dragging refinery margins notably lower.
*EXXONMOBIL 2Q EPS 41C, EST. 64C; PRODUCTION MISSES EST.
*EXXONMOBIL 2Q PRODUCTION 3.96MBOE/D VS EST. 4.1MBOE/D
As previously reported, the yen soared more than 2.4% in an extremely volatile session, and the Nikkei plunged then soared, completing a stunning 1,000 point move, after BOJ's stimulus disappointed watchers and failed to match expectations, with just an increase in ETF purchases and a doubling of a dollar-lending program to $24b.
Crazy ~1000pt price swings in Nikkei futures last night (across all exchanges, this one from SGX) $NK_F pic.twitter.com/Kv8zGCbqn7
— Eric Scott Hunsader (@nanexllc) July 29, 2016
Kuroda expands ETF target purchases to 6t yen, and orders assessment of effectiveness of BOJ policy for Sept. meeting
The BOJ maintained policy interest rate at -0.1%
USD/JPY just under 2% to 103.30 after falling as low as 102.71. Yield on 10-year JGB jumps 9.5 bps to -0.18%, set for the steepest advance since 2013
USD/JPY 3-mo. basis swap climbs 5.6 bps to -65 bps
Macro accounts sold USD/JPY after a muted rally following BOJ's decision, with some clients already expecting BOJ to disappoint beforehand, trader says
For those confused by the unexpected letdown by the BOJ, here is a summary of Wall Street reactions to the central bank's announcement, courtesy of Bloomberg
Jun Kato (fund manager, Shinkin Asset Management)
BOJ's decision was at the minimum end of what investors were expecting, disappointing them
Decision leaves some room for further easing after seeing details of the economic stimulus package by PM Abe
USD/JPY will probably see profit-taking and move gradually toward 100
After enjoying a stellar run-up, crude futures head south again, treading into bear-market territory. However, the fundamentals of supply and demand may not be the key reason behind the recent bout of weakness in crude futures.
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