Rising Inflation Sinks Stocks, Sparks US Dollar Rally
US index futures have turned sharply downward after US producer prices jumped in July (3.3% vs Street 2.5% and previous 2.3%), contradicting Tuesday’s consumer price report and suggesting that tariffs may be starting to drive up inflation. US core PPI (excluding food and energy) was even worse (3.7% vs Street 2.9 and previous 2.6%). US […]
Stock Markets Continue to Climb
Yesterday was a banner day for US equity markets with the small cap Russell 2000 rallying 3.0% and the large cap indices gaining 1.1%-1.4%, sending the S&P 500 and the NASDAQ Composite to new all-time highs. This morning finds the three main index futures contracts up another 0.2%-0.3%. Positive momentum has continued overnight with the […]
Trade and Inflation News Boost Stocks
US index futures are climbing again today with gains of around 0.4% for the three main contracts. Overnight, President Trump announced another 90-day delay to the imposition of tariffs on China to allow talks to continue. This was particularly well received in Japan, where the Nikkei rallied 2.1%, while the Hang Seng gained 0.3%. This […]
Stocks Rally on Tariff News as Earnings Remain Mixed
President Trump’s new tariffs come into effect today against countries who have not reached new trade deals yet, but traders appear undaunted as US index futures are up 0.4%-0.7%, adding to yesterday’s US index gains of 0.2% to 1.2% led both times by the NASDAQ. Sentiment appears to be getting a boost from reports that, […]
Stocks Rally on Big Tech Earnings; Copper Plunges off a Cliff
One of the themes which had been dominating this earnings season had been strong results and mixed guidance followed by selloffs as investors took profits against the news. Overnight, investors have responded positive to earnings and guidance from Microsoft and Meta Platforms, sending their shares soaring 8.7% and 11.2% in premarket trading, and pushing NASDAQ […]
US-EU Trade Deal Kicks Off a Busy Week For Business News
Over the weekend the US and EU agreed to a new trade deal which includes a 15% tariff on EU goods entering the US. The EU also agreed to buy $750B of US energy and make investments of $600B in the US. This news arrives ahead of Thursday’s deadline to reach new trade deals with […]
Traders Look Ahead to a Big Week Next Week
US index futures are quiet this morning, but overseas markets have been under pressure overnight and into this morning with the DAX down 0.8%, the FTSE down 0.5%, the Nikkei down 0.9%, and the Hang Seng down 1.1%. Commodities are up today with Crude Oil and Copper rising 0.4% and 0.1% respectively. The US Dollar […]
Negative Reactions to Positive Earnings Continue
Earnings reports have continued to trigger selloffs in large cap stocks overnight and into this morning as investors focus more on future outlooks than past results. These moves provide more evidence to suggest that the big market rally of the last three months likely has already priced in high expectations. Chipotle Mexican Grill is down […]
US Stocks Pause as Traders Digest Earnings and Await Powell Speech
With a 0.14% gain yesterday, the S&P 500 managed to eke out another record high close Monday, but Tuesday finds US index futures hitting pause and trading flat to down 0.1%. Traders appear to be waiting to see if there will be any hints in Fed Chair Powell’s speech this morning as to whether the […]
Mixed World Markets Consider Earnings and Tariffs
Global stock markets are off to a mixed start as the new trading week begins. US index futures are up 0.2%-0.3% and the Hang Seng gained 0.7% overnight. Conversely, the DAX and FTSE are down 0.1%-0.2%, Sydney lost 1.0%, and Tokyo lost 0.2%. In commodity action, Copper is up 0.5%, Crude Oil is flat, and […]