US Futures still under pressure, watch CSCO, TSN, FCAU

The S&P 500 Futures remain on the downside after they dropped for a second session yesterday on Powell's downbeat comments

FOREX 8

The S&P 500 Futures remain on the downside after they dropped for a second session yesterday as investors were discouraged by Federal Reserve Chairman Jerome Powell's downbeat comments about the economy. Mr. Powell warned of an extended period of weak growth and stagnant incomes due to the coronavirus pandemic. And he said additional fiscal stimulus should be provided to prevent long-lasting economic damage. Meanwhile, the Fed chief stated that the central bank would not push interest rates below zero.

Later today, Initial Jobless Claims for the week ended May 9 (2.500 million expected) and Import Price Index for April (-3.2% on month expected) will be reported. In Canada, March Manufacturing sales are expected at -5.7% on month.

European indices remain under pressure. The German Federal Statistical Office has posted final readings of April CPI at +0.9% (vs +0.8% on year expected). France's INSEE has reported 1Q jobless rate at 7.8% (vs 8.4% expected).

Asian indices all closed in the red. Australia's official jobs report show that the economy shed 594,300 jobs in April (-575,000 jobs expected), while jobless rate climbed to 6.2% (8.2% expected) from 5.2%.

WTI Crude Oil Futures are posting a rebound. The U.S. Energy Information Administration (EIA) released a weekly report for May 8, which stated that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 0.7M barrels from the previous week to 531.5M barrels.

Gold consolidated while US dollar hit a three-week peak after Jerome Powell comments.

Gold slightly fell 0.65 dollar (-0.04%) to 1715.63 dollars. EUR/USD decreased 27pips to 1.0791 while GBP/USD declined 24pips to 1.2208.

US Equity Snapshot


Cisco Systems (CSCO), a leading global supplier of network hardware and software, is expected to gain ground after reporting third quarter adjusted EPS up to 0.79 dollar, above estimates, up from 0.78 dollar a year ago, on sales down 12.0 billion dollars, also beating the consensus, from 13.0 billion dollars a year earlier.

Tyson Foods (TSN), the largest US producer of processed chicken and beef, will lower prices for some of its beef products by 30%, according to a Dow Jones report.

Fiat Chrysler (FCAU), the carmaker, will not distribute an ordinary dividend in 2020 related to fiscal year 2019, in light of the impact from the current COVID-19 crisis.


Source : TradingVIEW, Gain Capital

More from Indices

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.