Thursday morning finds stock markets around the world slipping as their recent rally fades. US index futures are down 0.4% to 0.7%, while in Europe, the DAX is down 0.1% and the FTSE is up 0.2%. Overnight, the Hang Seng lost 0.8% and the Nikkei fell 1.0%. The US 10-year Treasury yield is steady near 4.50%. Fed Chair Powell is speaking this morning.
Crude Oil is down 3.2% on the potential for increased supply after President Trump suggested possible progress toward a new nuclear deal with Iran. Natural Gas is down 2.0%. Copper is down 0.3%. In currency trading, Gold is stabilizing, Bitcoin is down 0.75%, and the US Dollar is flat to down 0.3% against the Loonie, Euro and Pound.
Today’s US economic reports are mixed. Headline retail sales beat the Street (0.1% vs Street 0.0%), while sales excluding autos fell short of expectations (0.1% vs Street 0.3%). US producer prices suggest inflation remains benign for now (2.4% vs Street 2.5% and previous 2.7%). The Empire State Manufacturing Index (-9.2 vs Street -10.0) and the Philadelphia Fed Manufacturing Survey (-4 vs Street -11) were not as bad as feared but still in negative territory.
Retail earnings season kicks off this morning. Walmart beat expectations ($0.61 vs Street $0.58) but indicated price increases from tariffs should kick in soon. Alibaba, down 4.3% premarket, missed by a penny. Dick’s Sporting Goods beat the Street ($3.37 vs Street $3.20) but is down 11.7% premarket after announcing plans to acquire Foot Locker for $2.4 billion.