US Futures green ahead of Fed- Watch SBUX, GE, AMD, V, SPOT


The S&P 500 Futures are slightly rebounding after they ended in the red yesterday

The S&P 500 Futures are slightly rebounding after they ended in the red yesterday. Market sentiment was dampened by ongoing political negotiations concerning a new $1 trillion coronavirus stimulus bill proposed by Senate Republicans. And investors exercised caution following mixed quarterly results from large firms.

Later today, reports on Wholesale Inventories (June preliminary reading -0.5% on month expected) and Pending Homes Sales (June annualized rate +15.0% on month expected) will be released. The Federal Reserve is expected to keep its benchmark interest rates unchanged at 0.00%-0.25%.

European indices try to remain positive. In Germany, June Import prices were released at +0.6% vs +0.3% in May. They were expected at +0.5%. The Bank of England has reported the number of Mortgage Approvals for June at 40,000 (vs 35,000 expected). France's National Statistics Office has released July Consumer Confidence Indicator at 94 (vs 99 expected, 97 in June).

Asian indices closed in dispersed order. Hong Kong HSI and Chinese CSI closed in the green when Japanese Nikkei and Australian ASX closed on the downside.

WTI Crude Oil futures are on the upside. The American Petroleum Institute (API) reported that U.S. crude stockpiles dropped 7M bbl for the week ended July 24. Later today, the Energy Information Administration (EIA) will release official crude oil inventories data for the same week (+4.892M bbl expected).

Gold remains firm near fresh all-time highs on virus fears and hopes of stimulus while the US dollar consolidates close to a two-year low before Fed.

Gold fell 2.88 dollars (-0.15%) to 1955.55 dollars. The dollar index declined 0.15pt to 93.543.

U.S. Equity Snapshot

Starbucks (SBUX), the global specialty coffee chain, disclosed third quarter adjusted LPS of 0.46 dollar, narrower than estimated, vs an EPS of 0.78 dollar a year ago, on net revenue of 4.2 billion dollars, just ahead of forecasts, down from 6.8 billion dollars a year earlier. The Co also reported that same-store sales declined 40.0%, slightly better than anticipated.

Source: TradingView, Gain Capital

General Motors (GM) is gaining ground before hours after posting quarterly earnings above expectations.

Boeing (BA), the aircraft maker, is edging higher before hours as quarterly free cash flow was less negative than forecast.

General Electric (GE), the industrial conglomerate, is gaining some ground before hours after posting quarterly sales and free cash flow that beat estimates.

Advanced Micro Devices (AMD), a designer and producer of microprocessors, announced second quarter adjusted EPS of 0.18 dollar, above estimates, up from 0.08 dollar a year ago on revenue of 1.9 billion dollars, as expected, up from 1.5 billion dollars a year earlier.

Visa (V), the credit card company, revealed third quarter adjusted EPS of 1.06 dollar, just beating estimates, down from 1.37 dollar a year ago on revenue of 4.8 billion dollars, in line with forecasts, down from 5.8 billion dollars a year earlier.

Spotify (SPOT), the music streaming specialist, is losing some ground before hours after reporting a wider than expected quarterly loss and sales that missed estimates.

Amgen (AMGN), a developer of biotechnology medicines, posted second quarter adjusted EPS of 4.25 dollars, beating estimates, up from 3.97 dollars a year ago, on revenue of 6.2 billion dollars, in line with the consensus, up from 5.9 billion dollars a year earlier.

eBay (EBAY), the global electronic commerce platform, released second quarter adjusted EPS of 1.08 dollar, slightly above forecasts, up from 0.66 dollar a year ago, on net revenue of 2.9 billion dollars, exceeding the consensus, up from 2.4 billion dollars a year earlier.

More from Equities

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 or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account