US Futures lose some ground –watch AMZN, CPB, JPM
Jean-Christophe Rolland September 3, 2020 8:09 AM
US futures dip a bit after S&P500 and Nasdaq posted new records yesterday.
US Futures are consolidating after Nasdaq 100 advanced for a fourth straight session yesterday, and S&P 500 jumped 1.5%, both hitting fresh records.
Later today, investors will focus on the Institute for Supply Management's Services PMI for August (57.0 expected) and initial jobless claims for the week ending August 29 (0.95 million expected). The Commerce Department will report July trade balance (58 billion dollars deficit expected). Research firm Markit will publish final readings of August Services PMI, expected at 54.7. In Canada, July Balance of Trades will be expected at CAD 2.5 billion deficit.
European indices remain strongly bullish. Research firm Markit has published final readings of August Services PMI for the eurozone at 50.5 (vs 50.1 expected), for Germany at 52.5 (vs 50.8 expected), for France at 51.5 (vs 51.9 expected) and for the U.K. at (vs 60.1 expected). The European Commission has reported July retail sales at -1.3% (vs +1.0% on month expected).
Asian indices closed mixed as Australian ASX and Japanese Nikkei were up when Hong Kong HSI and Chines CSI closed in the red. Data released this morning showed that China's Caixin Services PMI slipped to 54.0 in August (53.9 expected) from 54.1 in July.
WTI Crude Oil futures are on the downside, pressured by the rebound in the U.S. dollar. Meanwhile, the U.S. Energy Information Administration (EIA) reported that crude oil inventories dropped 9.36M barrels in the week ending August 28 (-2.14 million barrels expected). Besides, the U.S. crude oil production dropped to 9.7 million barrels per day from 10.8 million barrels per day. Iraq may seek a two month extension to implement the extra production cuts for OPEC+ deal, reported Bloomberg.
Gold is still consolidating while the US dollar tries to pursue its rebound on economic recovery optimism.
Gold fell 12.89 dollars (-0.66%) to 1930.03 dollars while the dollar index rose 0.15pt to 93.
US Equity Snapshot
Amazon.com (AMZN), the e-commerce giant, plans to create 10 000 jobs in UK this year.
Source : TradingVIEW, Gain Capital
Campbell Soup (CPB), a manufacturer of branded food products, posted fourth quarter adjusted and current quarter adjusted EPS forecast that both beat estimates.
JPMorgan (JPM) and Bank of America (BAC), the banking groups, were both upgraded to "buy" from "hold" at Deutsche Bank.
Fedex (FDX), the package delivery service company, was upgraded to "buy" from "hold" at Berenberg. On the other hand, rival UPS (UPS) was downgraded to "sell" from "hold", still at Berenberg.
Eli Lilly (LLY), a developer and producer of pharmaceuticals, was upgraded to "overweight" from "equalweight" at Morgan Stanley.
PVH (PVH), a designer and global marketer of branded apparel, released second quarter adjusted EPS of 0.13 dollar, above forecasts, down from an EPS of 2.10 dollars a year ago, on revenue of 1.6 billion dollars, better than anticipated, down from 2.4 billion dollars a year earlier.
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