Key Takeaways
- PCE tops estimates.
- BofA: now a “Buffalo Market”.
- 50-basis point September Fed cut odds double.
- TSMC set for German factory construction start.
- Apple’s China smartphone sales fall from top.
- Alphabet shares dip on OpenAI search threat.
I. Market Report
Stock futures rose Friday as the major averages head for weekly losses and investors anticipated a reading of the Federal Reserve’s preferred inflation gauge.
As of 08:33 am, EST (or 08:33 pm in Malaysia), futures tied to the Dow Jones Industrial Average advanced 249 points, or 0.62%. S&P 500 futures and Nasdaq-100 futures climbed 0.8% and 1.09%, respectively.
II. Market Movers
As of 08:33 am, EST (or 08:33 pm in Malaysia), top pre-market movements are as follows:
Ticker | Chg. | Company |
WINT | 121.27% | $Windtree Therapeutics, Inc. WINT$ |
CREV | 79.57% | $Carbon Revolution CREV$ |
BFI | 70.71% | $BurgerFi International Inc Ordinary Shares BFI$ |
DXCM | -38.14% | $DexCom, Inc. DXCM$ |
NBY | -42.79% | $NovaBay Pharmaceuticals, Inc. NBY$ |
NMHI | -46.30% | $Nature's Miracle Holding Inc. - Common Stock NMHI$ |
Note: We are pleased to inform you that our app now supports pre/after-market trading for US stocks. The trading hours for these sessions are as follows:
- Pre-market: 16:00 to 21:30 in Malaysia
- After-hours market: 04:00 to 08:00 the next day in Malaysia
Please note that regular trading hours are from 21:30 to 04:00 UTC.
III. Flash Headlines
US Core PCE Price Index Up 0.2% in June
The US released its June data, showing the core PCE price index, the Federal Reserve's preferred inflation gauge, rose 0.2% month-over-month, exceeding the expected 0.1% increase and the prior 0.1% rise. Additionally, US personal spending grew 0.3% in June, matching forecasts and accelerating from the 0.2% pace in May.
Event | Actual | Previous | Consensus | Forecast |
Core PCE Price Index MoM JUN | 0.20% | 0.10% | 0.10% | 0.10% |
Personal Income MoM JUN | 0.20% | 0.40% | 0.40% | 0.30% |
Personal Spending MoM JUN | 0.30% | 0.40% | 0.30% | 0.30% |
PCE Price Index MoM JUN | 0.10% | 0.00% | 0.10% | 0% |
PCE Price Index YoY JUN | 2.50% | 2.60% | 2.50% | 2.50% |
Core PCE Price Index YoY JUN | 2.60% | 2.60% | 2.50% | 2.50% |
S&P 500, Nasdaq Close Lower as Tech Woes Persist; Fear & Greed Index in 'Fear' Zone
The CNN Money Fear and Greed index showed a further decline in the overall market sentiment, with the index remaining in the “Fear” zone on Thursday. Read in detail>>
BofA: This is a 'Buffalo Market', Don't Hold Too Much Cash
Stocks began a broad recovery Thursday amid a sell-off in technology shares, which analysts say are common during bull markets, including stock swings and sector shakeouts. But Bank of America calls the day's situation a different kind of market - a buffalo market - which is still a bull market. But unlike a bull market, it may be feeling tired after a strong rally. Read in detail>>
Investors Pour Over US$6B Into Russell 2000 ETF in July; Analyst Sees Return to Large-Caps
Investors are increasingly bullish on small-cap stocks, driven by optimistic projections for the interest-rate-sensitive segment of the market to thrive as the market approaches the onset of a Federal Reserve rate cut cycle. Read in detail>>
Tom Lee, co-founder of Fundstrat, said that if history is a guide, the Russell 2000 index focused on small stocks may rise by 15% or more in August. Read in detail>>
Odds of 50-Basis Point Fed Rate Cut in September Suddenly Double
Thirty-day federal funds rate futures show a sharp increase in the likelihood that the Federal Reserve will cut interest rates by 50 basis points in September, according to the Chicago Mercantile Exchange's FedWatch tool. Read in detail>>
Fed Criticized for Slow Rate Cuts as US Credit Card Delinquencies Hit Highest Since 2012
The Philadelphia Fed's first quarter 2024 bank loan and mortgage report released on July 24 showed that the US credit card delinquency rate in the first quarter rose to the highest level since the Fed began tracking the data in 2012. One of the reasons behind this is that a period of high inflation has put severe financial pressure on most American households. Read in detail>>
IV. Stocks to Watch
TSMC Gains Pre-Market on Plans to Begin Construction of German Factory by Year-End
TSMC ($Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR TSM$) stocks rose before the market opened. On the news front, a semiconductor equipment company said that TSMC has confirmed the list of construction, factory engineering and equipment supply chain partners for the 12-inch factory in Dresden, Germany over the past year. Read in detail>>
Apple's China Smartphone Sales Drop Out of Top 5 for First Time in 4 Years, AR/VR Devices Struggle
Apple's ($Apple Inc. AAPL$) iPhone is facing more intense competition in the Chinese market. In the second quarter of this year, iPhone sales fell out of the top five in China for the first time. On July 26, research firm IDC reported that Apple’s iPhone shipments fell 3.1% in the second quarter, and its sales ranking in the Chinese market fell out of the top five. Read in detail>>
Musk To Discuss Investing US$5B in xAI After Seeing Poll Results
Business tycoon Elon Musk plans to talk with the board of Tesla, Inc. ($Tesla Motors, Inc. TSLA$) about possibly investing US$5 billion in his artificial intelligence startup xAI. Read in detail>>
ServiceNow CEO Touts Long Nvidia Tie-Up, 'Lightning Fast' Low-Cost AI Models
ServiceNow Inc ($ServiceNow, Inc. NOW$) shares are soaring Thursday after the company beat earnings estimates for the second quarter. CEO Bill McDermott characterized the company as the “unicorn” of AI following the print. Read in detail>>
Serve Robotics Stock Continues To Soar
Serve Robotics Inc ($Serve Robotics Inc. SERV$) shares are trading higher in Thursday’s after-hours session on what appears to be continued momentum from the regular session. Here’s what you need to know. Read in detail>>
Viking Therapeutics Jumps Pre-Market on Weight Loss Drug Development Progress
Clinical-stage biopharmaceutical company Viking Therapeutics ($Viking Therapeutics, Inc. VKTX$) continued to rise pre-market. The stock closed up more than 28% yesterday, hitting a two-month high since May 20. On the news front, Viking Therapeutics' announced candidate weight loss drug VK2735 has accelerated its development process. Read in detail>>
V. Calendar
Earnings:
$Bristol-Myers Squibb Company BMY$
$Colgate-Palmolive Company CL$
$3M Company MMM$
$Charter Communications, Inc. Class A CHTR$
$Centene Corporation CNC$
Expected IPO:
Please note that the timing of IPOs is subject to change at any time (including being advanced or delayed). Investors should therefore keep up-to-date with relevant news.
Events:
Time | Event | Previous | Consensus | Forecast |
08:30 PM | Core PCE Price Index MoM JUN | 0.10% | 0.10% | 0.10% |
08:30 PM | Personal Income MoM JUN | 0.50% | 0.40% | 0.30% |
08:30 PM | Personal Spending MoM JUN | 0.20% | 0.30% | 0.30% |
08:30 PM | PCE Price Index MoM JUN | 0% | 0.10% | 0% |
08:30 PM | PCE Price Index YoY JUN | 2.60% | 2.50% | 2.50% |
08:30 PM | Core PCE Price Index YoY JUN | 2.60% | 2.50% | 2.50% |
10:00 PM | Michigan Consumer Sentiment Final JUL | 68.2 | 66 | 66 |
10:00 PM | Michigan 5 Year Inflation Expectations Final JUL | 3% | 2.90% | |
10:00 PM | Michigan Consumer Expectations Final JUL | 69.6 | 67.2 | |
10:00 PM | Michigan Current Conditions Final JUL | 65.9 | 64.1 | |
10:00 PM | Michigan Inflation Expectations Final JUL | 3% | 2.90% | |
01:00 AM +1 | Baker Hughes Oil Rig Count JUL/26 | 477 | ||
01:00 AM +1 | Baker Hughes Total Rigs Count JUL/26 | 586 |
Finally, just a little reminder:
The regular trading hours for US stocks in the Daylight Saving Time (DST) are from 21:30 to 04:00+1 GMT+8, with pre-market trading available from 16:00 to 21:30.
Have a nice trading day!
Disclaimer:
The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.
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