01Aug2019 Pre-Market Commentary: Wall Street Stock Futures Hover Just Above The Unchanged Line, DOW Up 16 Points, US Dollar Index Showing Strength, Jobless Claims Climb 8K To 215K

Here is the current market situation from CNN Money

European markets are mixed today. The CAC 40 is up 0.37% while the DAX gains 0.16%. The FTSE 100 is off 0.39%.

ADM profit plunges more than 40% on U.S. weather, trade war woes

U.S. grains merchant and food processor Archer Daniels Midland Co on Thursday reported a 41.3% drop in second-quarter adjusted profit and missed Wall Street expectations, after being battered by the U.S.-China trade war and severe U.S. weather this spring that caused it significant supply-chain woes.

Pizza Hut rebound bolsters Yum Brands’ profit beat

Yum Brands Inc beat analysts’ expectations for quarterly profit and sales on Thursday, as the restaurant chain operator benefited from better-than-expected growth at all its restaurant chains, including Pizza Hut, sending its shares up 4%.

U.S. weekly jobless claims rise moderately

The number of Americans filing applications for unemployment benefits increased last week, but the trend in claims remained consistent with tightening labor market conditions.

Bombardier posts loss, lowers 2019 profit forecast as rail woes persist

Bombardier Inc on Thursday lowered its full-year core earnings and free cash flow forecasts, and reported a quarterly loss, as the Canadian plane and train maker wrestles with challenges in its important rail division.

GM posts flat profit, handily beats analyst expectations

General Motors Co on Thursday posted a flat quarterly net profit that handily beat market expectations, helped by U.S. sales of high-margin pickup trucks, SUVs and crossovers.

Futures edge higher as focus shifts from Fed to earnings

U.S. stock futures bounced on Thursday, a day after the S&P 500 and Dow saw their worst day since May, as focus shifted from the Federal Reserve’s cautious stance on further interest rate cuts to corporate earnings, which have been robust.

NYSE-owner ICE beats profit view on growth in transaction, data units

Intercontinental Exchange Inc , which owns the New York Stock Exchange, on Thursday beat analysts’ estimates for quarterly profit, helped by growth across its transaction and clearing business and data services unit.

Amazon in early talks to buy stake in India’s Reliance Retail: ET

Amazon.com Inc is in exploratory talks with Reliance Industries Ltd’s retail unit to buy an up to 26% stake in India’s biggest brick-and-mortar retailer, the Economic Times (ET) reported on Thursday.

Verizon beats profit estimates as monthly phone subscribers jump

Verizon Communications Inc on Thursday beat second-quarter profit estimates as the largest U.S. mobile carrier added far more net new phone subscribers who pay a monthly bill than expected.

Joe Scarborough Slams Dems For Attacking Obama’s Policies More Than Trump’s

MSNBC Host Joe Scarborough of MSNBC’s ‘Morning Joe’ complained in a tweet last night that the Democratic contenders onstage last night for Pt. 2 of the second Democratic debate spent more time attacking President Barack Obama’s policies than they spent attacking President Donald Trump.

Peter Schiff: “Either [Powell] Is Lying, Or He’s A Complete Idiot”

Via SchiffGold.com,

The Federal Reserve cut interest rates for the first time in over a decade Wednesday. And Jerome Powell left the door open for future cuts.

Peter Schiff broke it all down on his most recent podcast, saying this is the first interest rate cut on the short road to zero.

During his press conference after the FOMC meeting, Fed Chairman Jerome Power tried to straddle the fence. In the process, he ended up mixing his messages.

Powell called the 25 basis point cut a “mid-cycle adjustment.” When asked about future cuts, the Fed chair left that door propped open, saying “As the committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion.”

About midway through the Q&A session, Powell said the Fed wasn’t embarking on a long rate-cutting cycle like it would during a recession. But then he backtracked and sounded a little more dovish later on.

Let me be clear: what I said was it’s not the beginning of a long series of rate cuts. I didn’t say it’s just one or anything like that. When you think about rate-cutting cycles, they go on for a long time and the committee’s not seeing that.”

Of course, when the Fed pivoted to the “Powell Pause” last December, most analysts weren’t expecting a rate cut down the road. And here we are.

…

US Futures Rebound From Post-Powell Tantrum As Dollar Juggernaut Continues

World stocks and US index futures rebounded, even as the dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of U.S. interest rate cuts when Fed Chair Powell shocked when he said that the rate cut is a “mid-cycle adjustment” indicating it’s not the start of an extended series of cuts.

Dem Debate Post Mortem: Rivals Attack Biden, Harris; Gillibrand Says She’ll “Clorox The Oval Office”

Wednesday night’s Democratic debate Pt. II allowed a smattering of underdog candidates a chance to try and raise their profile by taking shots at two of the race’s frontrunners – Vice President Joe Biden and Sen. Kamala Harris.

But it was Joe Biden who took the most heat Wednesday night, taking fire from all sides regarding his record on abortion rights, crime and immigration. Many also questioned whether a candidate like Biden, who is out of touch with progressive base voters who favor an agenda set by the “Squad,” could successfully mobilize the base and boost turnout.

Biden and Harris led in terms of speaking time, with the vice president commanding 20 whole minutes (while Harris came in second with 17.7 minutes).

Airtel reports wider-than-expected Q1 loss of Rs 2,866 crore

Airtel reports wider-than-expected Q1 loss of Rs 2,866 croreTotal income of the telecom major, however, increased 4.59 per cent to Rs 20,812.50 crore.

Top execs abandon NBFCs, eye banking jobs

Top execs abandon NBFCs, eye banking jobsThe NBFC sector is engulfed in a liquidity crisis after IL&FS’ default last year.

India shuns trade war, export share grows

India shuns trade war, export share growsIndia’s share of world exports rose to 1.71% in the first quarter of 2019 from 1.58% in the fourth quarter of 2017.

Market Snapshot: Stock futures waver after Fed disappointment sparks selloff

U.S. stock index futures on Thursday indicate a mixed start for Wall Street after Federal Reserve Chairman Jerome Powell dampened expectations for further interest rate cuts following the central bank’s first cut in more than a decade.

Economic Report: Jobless claims climb 8,000 to 215,000 at end of July, but layoffs still extremely low

More workers applied for unemployment benefits at the end of July, but the rate of layoffs in the U.S. clung near the lowest level in decades and showed no sign of rising. Initial jobless claims rose by 8,000 to 215,000 in the week of July 27.

Market Extra: Here’s how Powell devastated one of the bond-market’s most popular trades

Powell’s remarks on an insurance interest rate cut may have devastated one of Wall Street’s most popular trades this year.