Written by Gary
US equities futures are pointing to a lower open (SPY -0.3%) on disappointing earnings and trade tensions. Analysts see this weakness as temporary negative reaction to headline mania.
Here is the current market situation from CNN Money | |
European markets are mixed. The FTSE 100 is higher by 0.12%, while the DAX is leading the CAC 40 lower. They are down 0.49% and 0.47% respectively. |
Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
What Is Moving the Markets
Here are the headlines moving the markets. | |
Airbus seeks splash to end airshow with AirAsia wide-body orderAirbus was set on Thursday to win a much-needed endorsement for the A330neo from its largest buyer as AirAsia prepared a long-distance finale to the Farnborough Airshow. | |
Boeing says sold 528 planes at FarnboroughBoeing Co said on Thursday it had won 528 new orders and commmitments at the Farnborough Airshow this week, buoyed by demand for freighters as air cargo markets rebound. | |
Dollar stays strong as China grabs for stimulus leversThe dollar stayed strong but stocks wobbled and metal markets buckled badly on Thursday, as signs that China was resorting to credit-fuelled stimulus again helped drive its currency to a one-year low. | |
China says U.S. blaming Xi for blocking trade deal is ‘bogus’China said on Thursday comments made by a senior White House official blaming Chinese President Xi Jinping for blocking progress on a deal to avert a trade war were “shocking” and “bogus” accusations. | |
U.S. trade official downplays effects of new tariffs: CNBCWhite House trade adviser Peter Navarro told CNBC on Thursday that U.S. President Donald Trump’s trade strategy with China, which includes levying new tariffs that have sparked a trade clash, is not as disruptive as many describe. | |
Firmer U.S. dollar boosts corporate interest in currency hedgingBy Saqib Iqbal Ahmed, Jessica DiNapoli and Caroline Valetkevitch | |
EU regulators charge Qualcomm with additional violation in pricing caseEU antitrust regulators on Thursday charged Qualcomm with a new violation in a case where the U.S. chipmaker has been accused of selling chipsets below cost to drive out Nvidia Corp unit and British phone software maker Icera. | |
Airbus says Farnborough orders reach 431 aircraftAirbus said it has won orders and commitments for 431 aircraft at the Farnborough Airshow, finishing with a new wide-body order from AirAsia . | |
Stock futures drop on disappointing earnings, trade tensionsDisappointing earnings from eBay and American Express pushed U.S. stock index futures lower on Thursday, while trade tensions rose on news the European Union is preparing to retaliate if United States slaps tariffs on EU cars. | |
California Supreme Court Blocks Proposal To Split State Into Three PartsThe California Supreme Court has shot down a measure that would have allowed Californians to vote on whether the state should be divided into three smaller states, dealing a serious setback to Venture Capitalist (and Elizabeth Holmes superfan) Tim Draper, who has insisted that the state is “ungovernable” in its current form and spearheaded a campaign to split it up. The Court on Wednesday sided with an environmental group that had challenged the ballot measure, arguing that the reforms demanded by the ballot measure were “too sweeping” to be put directly to the people.
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China “Shocked Beyond Imagination” At Larry Kudlow’s “Bogus” AccusationsWhile China has so far failed to list explicitly just how it will respond to Trump’s proposed tariffs on $200BN in additional Chinese imports, it has been quite clear that it is happy to go from trade war to currency war with its ongoing devaluation of the Yuan, which overnight lost another 550 pips, sliding to 6.80 against the dollar, the lowest level since July 2017. And as it turns out, a big reason for the overnight plunge in the Chinese currency are Wednesday’s comments by Larry Kudlow, Trump’s chief economic advisor, who blamed President Xi Jinping for stalled trade talks when he told CNBC that he believed lower-ranking Chinese officials want a deal, including Xi’s senior economic adviser Liu He, but that Xi has refused to make changes to China’s technology transfer and other trade policies, accusing Xi of “holding the game up.” “I think Liu He and others would like to move but haven’t,” he said at CNBC’s Delivering Alpha conference. “We are waiting for him (Xi). The ball is in his court.” Kudlow also said that China could end U.S. tariffs “this afternoon by providing a more satisfactory approach” and taking steps that other countries are also calling for. Asked about Kudlow’s comments, | |
Elon Musk Called Sierra Club For Help Deflecting Criticism After He Emerged As GOP PAC DonorThe environmental group “The Sierra Club”, which was the most prominent name to defend Elon Musk on Twitter after it was reported that he was a top donor to a GOP PAC, tweeted in his defense because they were personally asked by Elon Musk himself, Bloomberg reports. To do that, Musk reportedly told the Sierra Club to make public $6 million in donations that he had previously donated anonymously, as an attempt to deflect public anger from his support for the GOP. Musk’s request for a “favor” also apparently set off civil unrest between the head of The Sierra Club and its staff, some of whom did not want the Sierra Club to defend Musk publicly because of his GOP donation and stance on unions. For those who missed the weekend story (or were preoccupied with Elon Musk calling an international hero a pedophile over the weekend) on Saturday it was revealed that the Tesla CEO was a top donor to a G … | |
FBI Chief Threatens To Quit If Trump Invites Russian Agents To USFBI Chief Christopher Wray dismissed Russian President Vladimir Putin’s offer for US law enforcement agents to travel to Russia and interview the subjects of last week’s DOJ indictment, saying “that’s not high on our list of investigative techniques” during a Q&A with CNN’s Lester Holt at the Aspen Security Forum. He also threatened to quit if President Trump were to override him and insist on indulging Putin’s request to have Russian agents interview Michael McFaul, the ambassador to Russia during the Obama administration – after Sarah Huckabee Sanders said the administration was open to the request. Asked by Holt if he’d ever threatened to quit, Wray said, “I’m a low-key understated guy but that should not be mistaken for what my spine if made of — so I’ll just leave it at that.”
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Biotech IPO Boom Comes With Side EffectsBiotech stocks are hot tickets once again on Wall Street and that is bringing a wave of initial public offerings. The risk is the high demand for these companies is offset by a wave of new supply. | |
Earnings Outlook: GE earnings—No more drama, pleaseThe best investors can hope for from GE when it reports second-quarter results before Friday’s open is boring–just plain earnings and revenue, and no drama about new charges or its dividend. | |
The Wall Street Journal: Justice wants to speed up appeal of AT&T-Time Warner dealThe Justice Department on Wednesday sought to fast-track its appeal of the court decision allowing AT&T Inc. to buy Time Warner Inc., while offering the first hints of its legal arguments for the next phase of proceedings. | |
Bond Report: 10-, 30-year government bond yields set to rise for a 4th straight sessionLong-dated Treasurys are on track to fall for a fourth straight day, pushing yields higher, as fixed-income investors mostly focused on Federal Reserve Chairman Jerome Powell’s expectation that the central bank would remain on a steady rate-hike trajectory amid signs of increased wage and inflationary pressures. |
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