Morning Market Briefing – Sarah Potter 8/30/2018

Don’s Notebook August 30, 2018

Whether consumer spending in July kept up the second-quarter’s pace will be a major question for third-quarter GDP. The question for monetary policy is the core PCE price index and whether it remains quiet and tame and right at the Fed’s 2 percent target.
• There was a rush of economic data this morning. Initial jobless claims numbers continued their strong run at 213,000 new claimants last week.
• July personal income and spending data for the U.S. were released, unchanged at from June.
U.S. stock futures were lower this morning, spelling a potential end to the four-day win streak for the Dow, S&P 500, and Nasdaq. The latter two closed at record highs yet again Wednesday. The Dow is coming off its highest close since Feb. 1.
The timing is very tight, but both President Donald Trump and Canadian Prime Minister Justin Trudeau have signaled a new tri-party North American trade deal could be reached ahead of tomorrow’s deadline.

Overnight Trading Notes:
• the MSCI Asia Pacific Index lost 0.3 percent while Japan’s Topix index closed marginally lower after Trump accused China of undermining U.S. efforts in North Korea. Overall, the indexes closed mixed at the end of the day’s trading, with the Shanghai Composite having had the greatest change, down by 1.14%.
• In current trading, the European indexes are on a downward turn, with the FTSE 100 falling most, by 0.59%. The Stoxx 600 Index was 0.4 percent lower at 5:45 a.m. as stocks drifted on very little news flow.
• In the Americas, the indexes closed up at end of trading, with the Bovespa in Brazil having made the greatest gains, by 1.18%.

Earnings Notes:
• Campbell Soup (CPB) shares were lower after it announced this morning that it is selling two international units. The company beat earnings estimates but missed on revenue
• Other earnings out this morning include the latest numbers from Abercrombie & Fitch (ANF), Dollar General (DG), Dollar Tree (DLTR), Signet Jewelers (SIG), and Michaels (MIK).
• Lululemon (LULU) and Ulta Beauty (ULTA) issue quarterly earnings after today’s closing bell.