Futures Now (8AM): ES +6.25, DOW +130, NQ -10, ES +6.25, 10-year Treasury yield was at 1.26%, oil up +0.4, gold is up 1.5% (+26.9) Bitcoin traded around $40,000, holding this week’s recovery.
Global Markets: Positive earnings and Fed’s dovish FOMC report comforted investors. Overnight the MSCI Asia Pacific Index was up 1.7%, Japan’s Topix index was up 0.4%. European Stoxx 600 Index was up 0.3% by 6am ET.
Today’s Events: Major companies including bigtech Amazon.com Inc., Mastercard Inc., Comcast Corp. and Merck & Co. among many others are reporting their earning today. Robinhood will begin trading today under the ticker HOOD and is priced at $38.
8:30 Continuing Jobless Claims 3,196K 3,236K
8:30 Core PCE Prices (Q2) 5.90% 2.50%
8:30 GDP (QoQ) (Q2) 8.5% 6.4%
8:30 GDP Price Index (QoQ) (Q2) 5.4% 4.3%
8:30 GDP Sales (Q2) 9.2%
8:30 Initial Jobless Claims 380K 419K
8:30 Jobless Claims 4-Week Avg. 385.25K
8:30 PCE Prices (Q2) 3.7%
8:30 Real Consumer Spending (Q2) 11.4%
9:00 RUB Central Bank reserves (USD) 597.4B
10:00 Pending Home Sales (MoM) (Jun) 0.3% 8.0%
10:00 Pending Home Sales Index (Jun) 114.7
10:30 Natural Gas Storage 43B 49B
11:30 4-Week Bill Auction 0.045%
11:30 8-Week Bill Auction 0.045%
13:00 7-Year Note Auction 1.264%
Market Risk: China’s policy issues routing US listed chinese stocks, TAL and it’s peers lost about 70% YTD, one of the worst week for chinese stocks. Ride-hailing giant Didi lost about 60% since its IPO due to china’s latest policy reforms and WSJ reported that DIDI considers going private. But China signaled to reassure global banks and investors Wednesday, that seemed to have calmed markets a bit.
COVID-19 risk: Delta variant infections are pushing companies to change mask policies and challenging return to office timelines. Apple is the latest company to mandate mask on its premises.