Daily Markets: Retail Gains and Jackson Hole on the Bridge This Week
The big picture of today
Asian stock indices rose across the board, led today by the 1.8% jump in the Japanese Nikkei and 1.5% in the Chinese Shanghai Composite. Helping boost the region, South Korea’s exports in the first 20 days of August rose 40.9% year-on-year, with chip exports rising 39.8%. At midday, equity indices in Europe were also up the day after Flash PMI data which showed dynamic job creation during the month. US futures are also showing a positive opening. As investors wait for the 2021 Jackson Hole Economic Policy Symposium later this week, retail earnings are sure to analyze, not to mention today’s Flash PMI readings for the United States.
New guidance from the Centers for Disease Control and Prevention that travelers at high risk for complications from COVID-19 should avoid taking cruises, whether or not they are vaccinated.
Hospitals in the Midwest and Southwest are treating more children with Covid-19 than ever before, in hopes it will get worse before it gets better. Before the Delta variant, most children hospitalized for Covid-19 had underlying health issues, now about half have no underlying issues.
The FDA would endeavor to fully approve the Pfizer (PFE) The Covid-19 vaccine on Monday, making it the first coronavirus vaccine to go from emergency use authorization to full approval. Over 203 million doses have been administered nationwide.
Today, we bring a plethora of manufacturing and service PMI data, most of which points to a slowdown:
- Australia’s Markit Manufacturing PMI for August fell to a 15-month low of 51.7 from 56.9 while services fell to 43.3 from 44.2 – anything below 50 is contracting.
- Jibun Bank of Japan’s manufacturing PMI for August slowed to 52.4 from 53.0 and services fell to 43.5 from 46.4, declining at the fastest pace since May 2020 as the impact of coronavirus continues to worsen in the country.
- France’s Markit Manufacturing Flash PMI for August fell to 57.3 from 58 in July, while Flash Services fell to 56.4 from 56.8.
- Germany’s Markit Manufacturing PMI slipped to 62.7 from 65.9 the month before, while services edged down to 61.5 in August from 61.8 in July.
- The Eurozone Markit manufacturing PMI for August stood at 61.5 down from July 62.8, while services were little changed at 59.7 from 59.8 in July .
- The UK’s Markit / CIPS Manufacturing Flash PMI hit 60.1 in August from 60.4 in July, while the Flash Services reading for August fell to 55.5 from 59.6 in July.
The U.S. Federal Reserve on Friday canceled plans for an in-person Jackson Hole symposium, saying: “Due to the recently high level of health risk from Covid-19,” the annual economic policy conference will meet virtually. The move comes as infections rise nationwide and after Teton County, Wyo., Where dozens of central bankers, policymakers and economists normally meet for the event, changed its level of risk of transmission to “high”.
The House will hold concurrent procedural votes on the $ 1,000 billion bipartisan infrastructure plan and the $ 3.5 trillion budget resolution tonight, followed by a vote on a budget resolution on Tuesday, which kicks off the process. budget reconciliation. House Speaker Nancy Pelosi (D-CA) plans to tie voting rights legislation to Tuesday’s $ 3.5 trillion budget resolution in a bid to win over moderates and is expected to postpone the final vote on the $ 1 trillion bipartisan infrastructure package until later this year.
Later today, we’ll have the latest national activity index from the Chicago Fed, August Flash Markit readings for Manufacturing and Services PMIs as well as July data on existing home sales.
The main US indices opened in the green and rose during Friday’s session to limit the week’s losses. The S&P 500 ended the day up 0.8% and the week down 0.6%. The Russell 2000 gained 1.6% on Friday but remains more than 8% below its mid-March highs. The Nasdaq Composite gained 1.2% and the Dow Jones rose 0.7% to end the week down -0.7% and -1.4% respectively. S&P 500 mid-to-large-cap stock is down 10.5% from its 52-week high, while S&P 600-mid-small-cap stock is down more than 21% from its 52-week high. its peak of 52 weeks.
Actions to watch
Ahead of the opening of markets this morning, investors will flip through several quarterly earnings reports, including those from JD.com (JD), MSG Entertainment (MSGE), and NLP Education (TAL).
Intel (INTC) announced that its Intel Foundry Services will lead the first phase of the US Department of Defense’s Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) multiphase program to establish a national commercial foundry infrastructure.
T-Mobile (TMUS) revealed that the hack into its user database revealed six million additional customer details, bringing the total number of compromised user records to over 54 million.
PayPal (PYPL) announces the launch of a new service allowing its customers in the UK to buy, hold and sell cryptocurrencies with PayPal.
Paysafe (PSFE) has agreed to acquire German fintech company viafintech, an initiative that strengthens its presence in Germany and provides cross-selling opportunities for viafintech’s alternative banking and payment products to merchants around the world.
Sensata Technologies (ST) announced the acquisition of Spear Power Systems, a leader in lithium-ion-based energy storage solutions for critical and demanding end-user applications. The acquisition of Spear Power Systems advances Sensata’s electrification portfolio and strategy into new clean energy markets.
Could Interactive Platoon (PTON) be closer to presenting your long-awaited rower? That’s what 9to5Google thinks after discovering references to the rower when he broke down the code in the Peloton Android app.
The Wall Street Journal reports Boeing (BA) has pledged to invest in Richard Branson’s Virgin Orbit as part of the $ 3.2 billion SPAC list planned by the satellite launch startup later this year.
After today’s market closes, Palo Alto Networks (PAWN) will publish its latest quarterly results. Those looking to get a glimpse of the revenue reports to be had in the coming days should visit Nasdaq earnings calendar page.
On the horizon
- August 24: New Home Sales, API Crude Oil Inventory Report
- August 25: durable goods orders, EIA energy stocks
- August 26: Unemployment claims, Q2 GDP growth, corporate profits
- Aug 27: Personal Income and Expenditure, Wholesale Inventories, PCE Price Index, Merchandise Trade Balance, University of Michigan Consumer Sentiment Report
- August 30: Pending home sales, Dallas Fed Manufacturing
- August 31: S & P / Case-Shiller Home Price Index, Chicago PMI, Conference Board Consumer Confidence, API Crude Oil Inventory Report
Thought of the day
“Even the darkest night will end and the sun will rise.” -Victor Hugo
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.