Emini Dow Jones, Nasdaq Daily Forecast – 13 Aug, 2020

Nasdaq we wrote: I think we need a period of consolidation & I think we will trade sideways this week. Will be better for scalpers.

We are trading sideways as predicted this week as we recover all of Tuesday’s losses. Update daily at 08:00 & 19:00 GMT.

Emini Dow Jones bottomed exactly at strong support at 27570/550 & longs worked perfectly on the bounce to the 27920/950 target. In fact we topped exactly here. Try longs again at strong support at 27570/550, with stops below 27500. A break lower targets 27260/220. On further losses look for strong support at 27000/970.

Longs at 27570/550 target 27750, perhaps as far as 27920/950. A break above 28100/130 targets 28300/350 & 28500/550.

Nasdaq longs at 10830/800 target 10900/920 then 10980/900 & selling opportunity at 11040/080 but unfortunately, we were stopped above 11140 before turning lower.

So holding below 11000 is more negative for today targeting 10920/900, perhaps as far as a buying opportunity at 10830/800. Stop below 10750. A break lower is a sell signal targeting 10700/670. On further losses look for strong support at 10600/550.

Holding above 11100 is more positive for today allowing a recovery to 11150/170 & above 11200 we can retest the all-time high at 11275/285.

Dow Jones inches toward record high on tech boost

Aug 12: The S&P 500 jumped on Wednesday but finished just short of its February record closing high, in a broad rally led by tech-related stocks.

The index in afternoon trading briefly surpassed its record high closing level of 3,386.15 from Feb. 19, before the onset of the coronavirus crisis in the United States that caused one of Wall Street’s most dramatic crashes in history.

The index reached as high as 3,387.89. Its intraday record of 3,393.52 was also set on Feb. 19.

Heavyweights Microsoft Corp, Amazon.com Inc and Apple Inc were among the top boosts to the S&P 500 during the session.

The Nasdaq and Dow also rose sharply. The Nasdaq was the first of the three major indexes to bounce back to an all-time high in June. The Dow remains below its February peak.

With a better-than-feared second-quarter earnings season largely over, investors are preparing for the risk of a closely contested U.S. presidential election in the fall.

They also are awaiting news on stimulus talks. A breakdown in bipartisan talks over the next federal aid bill to help tens of millions of Americans suffering in the coronavirus pandemic entered a fifth day, with neither side ready to resume negotiations.

“Clearly the market has been outperforming the economy by a wide stretch recently. There may be a little bit of relief in that you now have basically two centrist candidates on the Democratic ticket,” said David Kelly, chief global strategist at JPMorgan Asset Management.

Democratic candidate Joe Biden on Tuesday picked Senator Kamala Harris as his choice for vice president.

The Dow Jones Industrial Average rose 289.93 points, or 1.05%, to 27,976.84, the S&P 500 gained 46.66 points, or 1.40%, to 3,380.35 and the Nasdaq Composite added 229.42 points, or 2.13%, to 11,012.24.

Tesla Inc shares jumped 13.1%, in one of the biggest boosts to the Nasdaq, after it announced a five-for-one stock split in an attempt to make its shares more accessible to employees and investors.

Data showed U.S. consumer prices increased more-than-expected in July, but high unemployment is likely to keep inflation under control, allowing the Federal Reserve to continue pumping money into the economy.

Advancing issues outnumbered declining ones on the NYSE by a 1.70-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored advancers.

The S&P 500 posted 33 new 52-week highs and no new lows; the Nasdaq Composite recorded 80 new highs and 25 new lows.

Volume on U.S. exchanges was 9.38 billion shares, compared with the 10.23 billion average for the full session over the last 20 trading days.

Dow, S&P 500 Join Nasdaq In Negative Territory In Late-Day Sell-Off

After turning in a mixed performance for most of the session, the major U.S. stock averages came under pressure late in the trading day on Tuesday. The Dow and the S&P 500 pulled back into negative territory, joining the tech-heavy Nasdaq, which posted a particularly steep loss.

The major averages ended the session just off their worst levels of the day. While the Nasdaq tumbled 185.53 points or 1.7 percent to 10,782.83, the Dow fell 104.53 points or 0.4 percent to 27,686.91 and the S&P 500 slid 26.78 points or 0.8 percent to 3,333.69.

The late-day sell-off on Wall Street came as traders continued to cycle out of big-name tech stocks, with the Nasdaq extending the pullback seen over the two previous session.

The Nasdaq pulled back further off the record closing high set last Thursday amid steep drops by tech giants such as Netflix (NFLX), Apple (AAPL), and Facebook (FB).

Before the downturn, the Dow and the S&P 500 were moving higher for the eighth consecutive session and reached their best intraday levels in over five months. The S&P 500 climbed within striking distance of its record high before turning lower.

The mixed performance seen earlier in the day came as the weakness among tech stocks was offset by strength among airlines and cruse operators.

Companies that have been hurt the most by the coronavirus pandemic benefited from news that Russia has approved a vaccine, with Russian President Vladimir Putin claiming it works “quite effectively.”

“It forms a stable immunity and, I repeat, has passed all the necessary checks,” Putin said at a meeting with members of the government, according to RIA Novosti.

The speed of the development of the vaccine has raised questions about its safety, although the news still generated optimism the coronavirus pandemic can be contained in the relatively near future.

In U.S. economic news, the Labor Department released a report showing producer prices climbed by more than expected in the month of July.

The Labor Department said its producer price index for final demand rose by 0.6 percent in July after dipping by 0.2 percent in June.

The rebound in producer prices reflected the largest increase since October of 2018 and exceeded economist estimates for an uptick of 0.3 percent.

Excluding food and energy prices, core producer prices still climbed by 0.5 percent in July after falling by 0.3 percent in June. Economists had expected core prices to inch up by 0.1 percent.

Sector News

Gold stocks turned in some of the market’s worst performances on the day, resulting in a 7.4 percent nosedive by the NYSE Arca Gold Bugs Index.

The sell-off by gold stocks came amid a steep drop by the price of the precious metal, with gold for December delivery plummeting $93.40 to $1,946.30 an ounce.

Considerable weakness also emerged among utilities stocks, as reflected by the 2.3 percent slump by the Dow Jones Utilities Average. The average continued to give back ground after ending last Friday’s trading at a two-month closing high.

Natural gas, software and commercial real estate stocks also came under pressure over the course of the session, while significant strength remained visible among airline and financial stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday, although China’s Shanghai Composite Index bucked the uptrend and slumped by 1.2 percent. Japan’s Nikkei 225 Index jumped by 1.9 percent, while Hong Kong’s Hang Seng Index surged up by 2.1 percent.

The major European markets also showed strong moves to the upside on the day. While the French CAC 40 Index soared by 2.4 percent, the German DAX Index spiked by 2 percent and the U.K.’s FTSE 100 Index shot up by 1.7 percent.

In the bond market, treasuries moved significantly lower over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.4 basis points to 0.658 percent.

Looking Ahead

A report on consumer price inflation may attract some attention on Wednesday, while traders are also likely to keep an eye on the latest developments in Washington.

For comments and feedback contact: editorial@rttnews.com

Business News

U.S. stocks mixed at close of trade; Dow Jones Industrial Average up 1.30%

At the close in NYSE, the Dow Jones Industrial Average rose 1.30% to hit a new 3-months high, while the S&P 500 index climbed 0.27%, and the NASDAQ Composite index declined 0.39%.

The best performers of the session on the Dow Jones Industrial Average were Boeing Co (NYSE:BA), which rose 5.52% or 9.39 points to trade at 179.41 at the close. Meanwhile, Caterpillar Inc (NYSE:CAT) added 5.26% or 7.10 points to end at 142.02 and Dow Inc (NYSE:DOW) was up 5.09% or 2.17 points to 44.80 in late trade.

The worst performers of the session were Microsoft Corporation (NASDAQ:MSFT), which fell 1.99% or 4.23 points to trade at 208.25 at the close. Walt Disney Company (NYSE:DIS) declined 0.88% or 1.14 points to end at 128.79 and Johnson & Johnson (NYSE:JNJ) was down 0.38% or 0.57 points to 148.03.

The top performers on the S&P 500 were MGM Resorts International (NYSE:MGM) which rose 13.77% to 21.65, Royal Caribbean Cruises Ltd (NYSE:RCL) which was up 10.00% to settle at 57.31 and Wynn Resorts Limited (NASDAQ:WYNN) which gained 9.96% to close at 81.48.

The worst performers were MarketAxess Holdings Inc (NASDAQ:MKTX) which was down 5.02% to 482.67 in late trade, Fiserv Inc (NASDAQ:FISV) which lost 4.40% to settle at 99.34 and Hologic Inc (NASDAQ:HOLX) which was down 3.87% to 65.90 at the close.

The top performers on the NASDAQ Composite were Seres Therapeutics Inc (NASDAQ:MCRB) which rose 389.22% to 22.70, Omeros Corporation (NASDAQ:OMER) which was up 50.88% to settle at 21.32 and Commercial Vehicle Group Inc (NASDAQ:CVGI) which gained 37.04% to close at 4.07.

The worst performers were Alliance MMA Inc (NASDAQ:WORX) which was down 46.13% to 3.100 in late trade, Reata Pharmaceuticals Inc (NASDAQ:RETA) which lost 33.16% to settle at 104.41 and Addex Therapeutics Ltd (NASDAQ:ADXN) which was down 30.07% to 14.69 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 2202 to 858 and 63 ended unchanged; on the Nasdaq Stock Exchange, 1704 rose and 1078 declined, while 76 ended unchanged.

Shares in Seres Therapeutics Inc (NASDAQ:MCRB) rose to 3-years highs; gaining 389.22% or 18.06 to 22.70. Shares in Omeros Corporation (NASDAQ:OMER) rose to 52-week highs; up 50.88% or 7.19 to 21.32.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 0.36% to 22.13 a new 3-months low.

Gold Futures for October delivery was up 0.51% or 10.30 to $2028.30 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 1.84% or 0.76 to hit $41.98 a barrel, while the October Brent oil contract rose 0.04% or 0.02 to trade at $44.94 a barrel.

EUR/USD was up 0.04% to 1.1741, while USD/JPY fell 0.01% to 105.94.

The US Dollar Index Futures was up 0.20% at 93.595.

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Dow jumps 300 points, Nasdaq under pressure as investors state rotation from out of tech-related stocks

The S&P 500 booked its longest stretch of gains in about 16 months Monday, as investors monitored signs that a long-awaited rotation on Wall Street into more economically sensitive cyclical stocks could be brewing, but at the expense of their high-flying counterparts.

Investors also focused on the significance of President Donald Trump’s weekend signing of executive orders extending some elements of coronavirus relief. The measures face likely legal hurdles and questions about their effectiveness, but the act may spur further talks among lawmakers.

Market participants also took stock of U.S.-China tensions.

How did major benchmarks fare?

The Dow Jones Industrial Average DJIA, +1.30% closed 357.96 points higher, or 1.3%, to 27,791.44, booking its seventh straight day of gains. The S&P 500 SPX, +0.27% added 9.19 points, or 0.3%, finishing at 3,360.47, within 1% of its Feb. 19 closing record of 3,386.15. It also clinched its seventh straight day of advances, its longest streak of gains since April 2019, according to Dow Jones Market Data. The Nasdaq Composite COMP, -0.38% retreated 42.63 points, or 0.4%, to end at 10,968.36.

The Dow Jones Transportation Average DJT, +2.72% rose 288.56 points, or 2.7%, to finish at 10,864.90, extending its wins streak to nine sessions in a row, its longest string of gains since January 2018, according to Dow Jones Market Data.

Stocks scored gains last week, with the Dow advancing 3.8% to 27,433.48, and the S&P 500 posting a weekly rise of 2.5% to 3,351.28, The Nasdaq gained 2.5% to finish at 11,010.98. The Nasdaq edged lower on Friday after hitting a series of record finishes that propelled it above the 11,000 milestone.

Read: If there’s an ‘actionable bubble’ in the stock market, this might be it, says BTIG’s Emanuel

What drove the market?

Monday trading showed signs of a rotation away from high-growth stocks in the tech sector to more economically sensitive cyclical companies, a trend that has been subject to fits and starts over recent weeks.

“As the summer COVID-19 spike wanes, investors are more inclined to view the economic recovery as real. That could mean the recent move toward cyclical stocks is real and sustainable for the first time since the pandemic began,” said James Meyer, chief investment officer at Tower Bridge Advisors.

Still, investors say it is unclear how far any nascent rally in cyclical companies might run, with the coronavirus still an obstacle that is weighing on the U.S. economic recovery and the feasibility of new fiscal stimulus measures announced by the Trump administration in question.

Read: A ‘sharper cyclical rally’ could be in the cards, this analyst says

The U.S. reached another dire milestone on Monday as new COVID-19 cases topped 5 million, more than one-quarter of the global total of nearly 20 million cases.

Uneven efforts within the U.S. to contain the coronavirus come as the White House and Democratic lawmakers failed last week to come to an agreement on a new round of pandemic aid. In response, Trump on Saturday signed executive orders that aim to pause the collection of payroll taxes, provide help on rent, assist with student-loan payments and extend a portion of additional unemployment benefits that had lapsed at the end of last month. The measures are almost certain to face legal challenges and logistical hurdles.

Specifically, one order authorizes states to pay $400 a week in additional unemployment benefits, with 75% of the funding coming from the federal government, versus the $600 in additional benefits that had expired at the end of July, which has been credited with helping borrowers and lenders, thus far, avoid a wave of consumer defaults.

See:States would be on the hook for billions under Trump’s jobless-benefits plan

“Executive orders that spend money, or presumably cut taxes are fraught with peril,” said Steven Skancke, chief economic adviser at Keel Point, and a former White House National Security Council and U.S. Treasury Department staffer.

“To be sure, there have been efforts to try to do that,” Skancke said, pointing to efforts by the Nixon administration to use line-item vetoes over spending he disagreed with from a policy standpoint. “All of that was overturned in the courts,” he said, adding that the precedent doesn’t bode well for Trump’s efforts to override powers of Congress to tax and spend.

“They certainly will be challenged, and as a result they don’t provide certainty in terms of their impact,” he told MarketWatch.

Meanwhile, U.S.-China tensions intensified, with Beijing on Monday announcing unspecified sanctions against 11 U.S. politicians and heads of organizations promoting democratic causes, including additional measures targeting Sens. Marco Rubio and Ted Cruz, who already were subject to a travel ban.

Also, Chinese jet fighters briefly crossed the midline of the Taiwan Strait on Monday, news reports said, as U.S. Health and Human Services Secretary Alex Azar visited the island. Azar is the most senior U.S. official to visit Taiwan in around four decades.

Earnings season also further winds down this week. Through Friday, companies representing 89% of the S&P 500’s market cap had reported second-quarter results, according to Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities. In aggregate, 81% of the companies that have reported beat lowered projections.

Earnings Watch:Hot rookies and not-so-hot pot companies jump on the slowing earnings train this week

Earnings have exceeded estimates by 23.2% in aggregate, with 81% of the reported companies beating their lowered projections during the pandemic. Golub also noted that while second-quarter earnings per share have surpassed projections by over 23%, consensus 3Q estimates have been raised by only 3%, and fourth-quarter estimates remain unchanged.

In economic data, the number of job openings in the U.S. rose 518,000 to 5.8 million, climbing for a second month in a row. But the number of jobs available was running around 7 million before the pandemic.

Which companies were in focus?
  • FedEx Corp. FDX, +8.96% and United Parcel Service Inc. UPS, +1.71% shares gained 9% and 1.7%, respectively, Monday, amid bullish analyst comments on the package delivery giants given signs of increasing e-commerce volumes and improved pricing.
  • Shares of MGM Resorts International MGM, +13.76% led the S&P 500’s gains Monday, with the stock adding 13.8% after Barry Diller, chairman of IAC/InterActiveCorp IAC, -1.33% unveiled a 12% stake in the company.
  • Pinterest Inc. PINS, +2.51% shares rose 2.5% in Monday trading after Morgan Stanley analyst Brian Nowak upgraded the stock to overweight from equal weight and raised his price target to $44 from $34.
  • Shares of Beyond Meat BYND, -3.10% fell 4.1%, despite a big upgrade from Goldman Sachs analyst Adam Samuelson who raised his price target for the alternative-protein pioneer from $44 to $112, an 155% increase.
  • McDonald’s Corp MCD, -0.23% fell 0.2% Monday after the fast-food chain said it was suing its former chief executive to recoup severance and benefits worth up to $42 million. The company is alleging that its now ex-CEO Steve Easterbrook lied to its board about sexual relationships he had with employees before he was fired last year.
  • Shares of social media platform Twitter Inc. TWTR, +0.80% gained 0.8% after The Wall Street Journal reported it had held preliminary talks about a potential combination with TikTok, the video-sharing app that the Trump administration has declared a national-security threat due to its Chinese ownership. Microsoft Corp. MSFT, -1.99%, however, is still seen as the front-runner in any deal with TikTok after weeks of talks between it and TikTok’s owner, Beijing-based ByteDance Ltd., the report said.
  • Shares of Berkshire Hathaway Inc. BRK.A, +1.43% BRK.B, +1.48% rose 1.5% after the conglomerate run by billionaire investor Warren Buffett on Saturday reported an 87% jump in second-quarter profit thanks to the rising value of its investment portfolio, though it also took a write-down of around $10 billion on the value of its aircraft parts manufacturing business.
  • Marriott International Inc. MAR, +3.57% shares gained 3.6% despite the hotel operator reporting a wider-than-expected second-quarter loss and revenues that came in below Wall Street estimates.
  • Shares of Royal Caribbean Cruises Ltd. RCL, +10.00% climbed 10% Monday even after the cruise operator announced a bigger-than-expected second-quarter loss. But revenue fell less than forecast as cruises were suspended due to the pandemic.
  • Eastman Kodak Co. KODK, -27.89% Shares of  plummeted 27.9% after reports the U.S. International Development Finance Corp. is withholding its planned $765 million loan after the deal came under regulatory scrutiny.
How did other markets trade?

The 10-year Treasury note yield TMUBMUSD10Y, 0.582% rose 1.1 basis point to 0.573%. Bond prices move inversely to yields.

The greenback was up 0.2%, with the ICE U.S. Dollar Index DXY, -0.05%, a gauge of the buck against a half-dozen currencies, at 93.60 Monday.

In Europe, the Stoxx Europe 600 index SXXP, +0.30% finished 0.3% higher, after advancing 2% last week, and the FTSE 100 UKX, +0.75% also added 0.3%, following its 2.3% weekly advance.

In Asia, China’s CSI 300 index 000300, +0.63% ended trade up 0.4%, while Hong Kong’s Hang Seng Index HSI, +2.31% closed 0.6% lower.

U.S. benchmark oil CL.1, +0.81% tacked on 72 cents, or 1.8%, to end at $41.94 a barrel on the New York Mercantile Exchange. Gold futures for December GCZ20, -1.07% settled $11.70 higher, or 0.6%, to end at $2,039.70 an ounce.

William Watts contributed reporting

Fintech Focus For August 10, 2020

Fintech Header

Daily Perspective: Only the paranoid survive.Andy Grove

Fintech Movers: Goldman Sachs is seriously considering its own cryptocurrency, possibly a stablecoin, as it significantly expands its digital assets team and appoints a new head to spearhead efforts.Coindesk

  • Capital markets DLT on cusp of acceleration.
  • Eurex expands in Taiwan with new futures.
  • Giving credit where credit is due: Robinhood.
  • One Inc has acquired Invenger Technologies.
  • Brazilian Stock Exchange, Avelacom connect.
  • Quantum Group acquires Tail rewards app.
  • Nasdaq, Trumid collaborate on bond trading.
  • RBC to pump up AI models with new platform.
  • Grayscale files trust for reporting company status.
  • REDD raises $5.8M to expand research offer.
  • Evolve hits $1B assets under management.
  • SoFi introduced a financial assistance program.

Benzinga Global Fintech Awards Spotlight:

Every year Benzinga, a leading news and data platform, holds the Global Fintech Awards, a day of dealmaking, networking, and recognition in the financial technology space.

Ahead of the November 10, 2020 event, this newsletter will highlight one disruptive innovator working to create positive and diverse change in the financial services space.

Today’s disruptive innovator is Webull, a commission-free trading platform for the engaged investor.

For a chance to make your mark on the future of innovation and be featured in this newsletter, check out our Global Fintech Awards!


Watch Out For This: The world’s most successful people, from Ray Dalio to Warren Buffett, are not necessarily leagues above the rest of us in raw intelligence – they have simply developed and applied better mental models of how the world works, and they use these principles to filter their thoughts, decisions, strategies, and execution.Visual Capitalist

  • Your essential revenue software stack.
  • NY Attorney General to dissolve NRA.
  • 1/3 renters will miss August payments.
  • Trump sidesteps Congress on stimulus.
  • US uncovers most sophisticated tunnel.
  • 17 cars available for less than $20,000.
  • The COVID virus and going to school.
  • Twitter froze @TeamTrump’s account.

ammonium-nitrate-explosions-3

Image from Visual Capitalist. 

Market Moving Headline: U.S. companies’ profit growth forecasts for the next five years are still intact, according to Refinitiv data, suggesting that the impact inflicted on companies by the coronavirus pandemic is likely to be more fleeting than that in previous crises.Reuters

  • Stock market update for the week ahead.
  • ARK on policy, the market, and innovation.
  • Fitch revises US outlook on public finance.
  • Twitter and TikTok discuss a combination.
  • More than 20GB of Intel code was leaked.
  • Fed headed for clash with shadow lenders.
  • Uber delivery is now larger than ride-hailing.
  • Alipay, WeChat face antitrust investigation.
  • 30-yr mortgage rate fell to a new low, 2.88%.
  • DoorDash launches a convenience store.
  • The disconnect between consumers, stocks.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Indonesia Shares Draw Flat Lead For Monday's Trade

The Indonesia stock market on Friday ended the three-day winning streak in which it had gathered more than 170 points or 3.4 percent. The Jakarta Composite Index now rests just above the 5,140-point plateau and it figures to be rangebound again on Monday.

The global forecast for the Asian markets remains mired in uncertainty, balancing better than expected economic data, tumbling crude oil prices and continued uncertainty over stimulus. The European and U.S. markets were slightly higher and the Asian markets now look to open roughly flat.

The JCI finished modestly lower on Friday following mixed performances from the financial shares, resource stocks and cement companies.

For the day, the index shed 34.38 points or 0.66 percent to finish at 5,143.89 after trading between 5,119.68 and 5,187.37.

Among the actives, Bank Danamon Indonesia collected 0.36 percent, while Bank Mandiri added 0.43 percent, Bank Negara Indonesia shed 0.43 percent, Indosat lost 0.42 percent, Indocement tanked 3.85 percent, Semen Indonesia advanced 0.78 percent, Indofood Suskes tumbled 2.14 percent, Astra Agro Lestari gained 0.52 percent, Aneka Tambang rose 0.60 percent, Vale Indonesia sank 1.08 percent, Timah rallied 0.63 percent, Perusahaan Gas retreated 2.02 percent and Bumi Resources was unchanged.

The lead from Wall Street offers little clarity as stocks opened lower Friday and remained in the red throughout much of the day until a late rally pushed the Dow and S&P barely into the green – although the NASDAQ stayed negative on profit taking after big gains last week.

The Dow added 46.50 points or 0.17 percent to finish at 27,433.48, while the NASDAQ dropped 97.09 points or 0.87 percent to end at 11,010.98 and the S&P 500 rose 2.12 points or 0.06 percent to close at 3,351.28.

The uncertainty on Wall Street was the result of growing uncertainty about a new coronavirus relief plan following the failure of the lawmakers to arrive at an agreement amid reports of spiked in various cases around the world.

Tensions between the U.S. and China have escalated following the Trump administration unveiling a ban on U.S. transactions with ByteDance’s TikTok and Tencent-owned WeChat.

In economic data, the Labor Department reported a larger than expected increase in employment last month as the jobless rate fell to 10.2 percent.

Crude oil prices drifted lower Friday on concerns about outlook for energy demand after reports showed spikes in coronavirus cases in several parts across the world. West Texas Intermediate crude oil futures for September ended down $0.67 or 1.6 percent at $41.28 a barrel. For the week, WTI crude oil futures gained 2.1 percent.

Closer to home, Indonesia will provide Q2 numbers for current account later today; in the three months prior, the current account deficit was $3.9 million.

For comments and feedback contact: editorial@rttnews.com

President Donald Trump to hold 3:30 p.m. ET news conference Saturday in Bedminster, N.J. after coronavirus talks flounder

President Donald Trump was set to hold a news conference on Saturday at 3:30 p.m. Eastern Time at his golf club in Bedminster, N.J., following a week of failed talks to hash out a deal to provide additional stimulus to out-of-work Americans. The planned event comes after the president held a surprise news conference at the golf club on Friday noting that he was contemplating signing a raft of executive orders that would place a moratorium on evictions, expand some unemployment benefits, defer student loan payments and defer payroll taxes for the rest of 2020. Those executive orders, however, fall short of what Congress can enact to help millions who have been economically hurt by business closures due to the novel strain of coronavirus from which COVID-19 is derived.On Friday, Democratic congressional leaders and Trump administration negotiators emerged from last-ditch coronavirus aid bargaining meetings empty-handed. Disagreement centered on the enhanced federal jobless benefits, $600 weekly add-on payments to the unemployed that lapsed in July, and how much to give to states. It’s unclear what Trump’s executive orders, should he decide to take that tacked, would do to negotiations between parties going forward. Friday served as a self-imposed deadline for a deal to be achieved before Congress goes into a summer recess. If lawmakers do not return to Washington later in August, the next likely window for negotiations is either September, when they will be focused on passing a temporary spending bill to keep the government open past Sept. 30, or after the Nov. 3 election. Investors have been keenly watching negotiations, with U.S. benchmarks trading as if a deal of some kind will be struck. The Dow Jones Industrial Average DJIA, +0.17% ended Friday trade with weekly gain of 3.8%, the S&P 500 index SPX, +0.06% booked a weekly gain of 2.5%, while the technology-heavy Nasdaq Composite Index COMP, -0.87% also notched a roughly 2.5% gain for the five-session period.

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Nasdaq falls from record as Washington deal stays elusive

New York Stock Exchange opens during COVID-19 Traders walk past the New York Stock Exchange as the building opens for the first time since March while the outbreak of the coronavirus disease (COVID-19) continues in the Manhattan borough of New York, on May 26, 2020. (Photo: REUTERS/Lucas Jackson)

NEW YORK: Wall Street stocks finished mixed on Friday (Aug 7), with the Nasdaq retreating from a record following solid US jobs data as Washington talks on a new spending package remained stalemated.

The US added 1.8 million jobs last month, fewer than in May and June, but better than expected, the Labor Department reported.

While unemployment fell to 10.2 per cent from 11.1 per cent, that is still an extremely high number by historic standards and economists continue to view the US economy as being on shaky ground.

The Dow Jones Industrial Average ended up 0.2 per cent at 27,433.48.

The broad-based S&P 500 gained 0.1 per cent to 3,351.28, while the tech-rich Nasdaq Composite Index dropped 0.9 per cent to 11,010.98, ending a four-day streak of records.

The latest talks between Democratic congressional leaders and Trump administration officials again ended with finger-pointing.

“Another fiscal package is urgently needed, but alarmingly, policymakers may be at an impasse,” said a note from Oxford Economics. “Failure to reach an agreement adds downside risk to an economy that is already at a critical juncture.”

Investors were also monitoring escalating friction between Washington and Beijing. On Friday, the United States slapped sanctions on Hong Kong’s top leader in the wake of a new Chinese security law imposed on the city.

The move came after Trump Thursday night announced sweeping restrictions against Chinese-owned social media giants TikTok and WeChat, drawing a rebuke from Beijing, which slammed the move as “arbitrary political manipulation and suppression.”

Among individual companies, Uber Technologies slumped 5.1 per cent as it reported a US$5.2 billion quarterly loss amid the hit to the ride sharing company from COVID-19 shutdowns.

UPS surged 7.9 per cent as it announced new surcharges for the coming holiday season, underscoring the benefit to the company from the increase in e-commerce orders.

Goldman Sachs advanced 1.6 per cent as it disclosed it would restate second-quarter results following a settlement with the Malaysia government over the bank’s role in the long-running 1MDB scandal. The move will reduce Goldman’s second-quarter profits to US$197 million from US$2.25 billion.

Stocks – Wall Street Opens Lower as Payrolls Fail to Impress; Dow Down 66 Pts

Investing.com — U.S. stock markets opened lower on Friday after a modestly better-than-expected jobs report for July failed to allay concerns that the economic recovery may be stalling. 

The U.S. created 1.763 million jobs in the month through mid-July, down from a revised 4.791 million in June. While that was marginally stronger than the 1.60 million average forecast, and while it was a relief after an alarmingly weak report on private payrolls from ADP earlier in the week, it still pointed to a clear loss of momentum in the labor market last month, when a surge of Covid-19 infections across the south and west of the U.S. forced a number of states to freeze or even partially reverse their economic reopening plans. 

By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was down 73 points, or 0.3%, at 27,314 points. The S&P 500, which has closed in this week on a new all-time high, retreated 0.3%, while the Nasdaq Composite fell 0.2%.

The jobs report was unable to lift the gloom created by President Donald Trump’s latest blast at China and by the failure of lawmakers in Washington DC to agree on a new round of relief measures for the economy, most importantly the extension of unemployment benefits for the millions who have last their jobs since March. 

Trump on Thursday had raised tensions with China again on Thursday by banning U.S. residents from interacting with ByteDance, the owner of the TikTok app, on security grounds. He also issued a similar ban on the WeChat messaging app, which is owned by U.S.-listed Tencent Holdings (OTC:TCEHY). Tencent ADRs fell 7.0% in early trading.

Other Chinese ADRs also fell after a Trump administration panel recommended that Chinese companies be forced to delist if they don’t open their books to U.S. auditors. Alibaba (NYSE:BABA) ADRs and Nio (NYSE:NIO) ADRs both fell 4.0%.

Another stock under pressure was Uber (NYSE:UBER), which reported a widening loss in the second quarter as its booming food delivery business failed to compensate for a 75% drop year-on-year in bookings for its core ride-hailing business. The Uber Eats business, which has become more and more essential to CEO Dara Khosroshahi’s growth narrative, is still not profitable, but Khosroshahi stuck to his revised target of breaking even on an adjusted EBITDA level by the end of next year. Uber stock fell 5.1%.

The biggest gainers included Zillow (NASDAQ:ZG) stock, which rose 15% to a five-year high as the online realtor reported better-than-expected numbers for the second quarter.