Jobs Data, Productivity, Factory Orders, FOMC Minutes
Equity futures are pointing slightly higher this morning, but the gains are far from comforting considering the S&P 500 slid 2.2% yesterday, led by 5.3% tumble in financial stocks.
Positive data in nationwide manufacturing, auto sales, and newly signed contracts for home sales yesterday weren’t enough to alter widespread sentiment that the 5-month rally in markets had overheated, but there’s plenty of data this morning that looks likely to try again. Analysts expect the ADP private jobs survey to report moderating losses in August, while productivity gains in the second quarter may be revised up, and factory orders are set to see gains.
In the afternoon, minutes from the last FOMC meeting are expected to show that central bank officials are increasingly optimistic about the prospects for recovery.
Unfortunately, global stocks aren’t boosting sentiment. Though China’s Shanghai Index gained 1.16%, Japan’s Nikkei dropped 2.37% and the Hang Seng fell 1.76%. Stocks in Europe are currently in the red too.
“Meantime, commodity prices are firming up, with oil finding support at the $68 level after sliding from $74 at the start of last week,” said Robert Kavcic from BMO. “The US$ is modestly weaker on a trade-weighted basis—the yen remains strong with risk aversion still on the rise, while the Aussie dollar is rallying after better-than-expected Q2 GDP results.”
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