The Closing Look
Stocks fell on Thursday as investors digested the latest round of economic and earnings data. Before the open, the government said U.S. GDP rose 1.4% in the second quarter, beating estimates for 1.1%. Mid-day, stocks were slammed after some Deutsche Bank clients reduced collateral on trades. Separately, shares of Wells Fargo (WFC) took out their Feb 2016 low.
Gary’s Thoughts:
The Closing Look
Stocks rallied on Wednesday as investors digested a rather busy day. Six Fed heads spoke, including Janet Yellen, with the big headline coming from Mr. Evans. Mr. Evans said, rates should stay low for a long time, and that sparked a nice afternoon rally. Elsewhere, oil surged after rumor spread that OPEC will cut production in November. Shares of Nike ($NKE) and Tempur Sealy International ($TPX) both fell after reporting earnings. Finally, economic data was mixed. Durable Goods Orders, were unchanged last month, beating estimates for a decline of -1.9%. Year-over-year, orders fell -1.3%, beating estimates for a decline of -4.1%. Elsewhere, MBA Mortgage Applications fell -0.7%, which was better than last week’s reading of -7.3%.
Gary’s Thoughts: Oil…oil…and more oil. And OPEC still hasn’t met yet.
The Morning Look
Market Update:
Stock futures are flat ahead of Thursday’s open as investors approach the end of the month and the end of quarter.
Gary’s Thoughts: Energy on radar screen now.
Economic Calendar:
- Patrick Harker Speaks 5:00 AM ET
- GDP 8:30 AM ET
- International Trade in Goods 8:30 AM ET
- Jobless Claims 8:30 AM ET
- Corporate Profits 8:30 AM ET
- Dennis Lockhart Speaks 8:50 AM ET
- Bloomberg Consumer Comfort Index 9:45 AM ET
- Jerome Powell Speaks 10:00 AM ET
- Pending Home Sales Index 10:00 AM ET
- EIA Natural Gas Report 10:30 AM ET
- Neel Kashkari Speaks 2:30 PM ET
- Esther George Speaks 4:15 PM ET
- Fed Balance Sheet 4:30 PM ET
- Money Supply 4:30 PM ET
- Janet Yellen Speaks 5:10 PM ET
Highlights:
- Oil surges after OPEC agrees to cut production in November
Gary’s Thoughts: We shall see if this sticks. - Fed’s Evans said, Rates Will Stay Easy For A Very Long Time
Gary’s Thoughts: So 8 years at 0% is not a long time?