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08.00am: Wall Street seen weaker ahead of tech earnings
US stocks are expected to nurse modest losses at the open ahead of another bumper day of earnings with tech heavyweights Apple Inc and Amazon.com Inc reporting after the closing bell.
Futures for the Dow Jones Industrial Average are down 54.00 points, or 0.15%, for the S&P 500 by 12 points, or 0.3%, and for the Nasdaq Composite by 66 points, or 0.4%.
Wednesday’s session saw the Nasdaq suffer its heaviest loss since February, while the S&P and DJIA also fell following the surprise Fitch credit rating downgrade.
The tech sector will remain in focus today with Apple and Amazon’s numbers. Investors will looking for guidance on Apple’s artificial intelligence plans after it was forced to make drastic cuts to production forecasts for its mixed-reality Vision Pro headset.
Elsewhere, figures are due from ConocoPhillips, Moderna, Warner Bros Discovery, Kellogg, Expedia, Hasbro, Airbnb and Coinbase.
In economic news, economists anticipate initial US state unemployment claims to have ticked up to 226,000 last week after falling to a five-month low of 221,000 last week. Separately, prices paid by businesses for services are expected to have fallen, with economists forecasting the July ISM services purchasing managers’ index reading at 53, down from 53.9 in June.
Qualcomm stock dipped 8.3% in extended trading after the company’s third-quarter results disappointed in terms of sales and guidance.
The company reported adjusted earnings of $1.87 per share, above Street expectations of $1.81 but drastically short of the $3.29 per share it reported a year earlier. Revenue was $8.44 billion, short of the $8.5 billion street consensus.
But Moderna Therapeutics Inc stock is pointing higher in pre-market, up 1.6%, as it reported better than feared second quarter earnings.
The mNRA vaccine maker reported a net loss of $1.4 billion on $300 million of revenue in its second quarter, representing a $3.62 loss per share – versus market expectations of $3.84 per share.
Warner Bros Discovery Inc was another stock heading upwards, rising 3.0% in pre-market, as it reported narrowed second quarter losses following a bump in revenue.
“>US stocks are expected to nurse modest losses at the open ahead of another bumper day of earnings with tech heavyweights Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) reporting after the closing bell.
Elsewhere, figures are due from ConocoPhillips (NYSE:COP), Kellogg, Expedia (NASDAQ:EXPE), Hasbro (NASDAQ:HAS), Airbnb and Coinbase.
“>9.15am: Weekly jobless claims rise but in line with forecast
Initial claims for unemployment insurance in the US were higher week-on-week, but came in line with market forecasts, according to figures from the US Department of Labor.
Initial jobless claim in the week that ended July 22 totalled 227,000, up 6,000 from the previous week’s unrevised level of 221,000, in line with the FXStreet-cited market consensus.
The four-week moving average was 228,250, a decrease of 5,500 from the previous week’s unrevised average of 233,750.
The figures follow JOLTS job vacancy ADP private payrolls figures earlier in the week and provide the backdrop to Friday’s non-farm payrolls.
8.00am: Wall Street seen weaker ahead of tech earnings
“>9.40am: Stocks extend falls, Qualcomm off 10%
US stocks made a weak to the day as a spike in bonds yields, spurred in part by Fitch’s downgrade of US credit rating, put rate-sensitive shares under pressure.
Shortly after the opening bell the Dow Jones Industrial Average was down 69.89 points, 0.2%, at 35,212.63, the S&P 500 fell 15.95 points, 0.4%, to 4,497.44 and the Nasdaq Composite slipped 39.89 points, 0.3%, to 13,933.56.
Tech stocks extended Wednesday’s heavy falls ahead of results from two of the sector’s big beasts, Apple Inc and Amazon.com Inc, due after the closing bell.
In economic news, weekly jobless claims were in line with expectations.
Initial jobless claim in the week that ended July 22 totalled 227,000, up 6,000 from the previous week’s unrevised level of 221,000, in line with the FXStreet-cited market consensus.
The four-week moving average was 228,250, a decrease of 5,500 from the previous week’s unrevised average of 233,750.
It’s another bumper day of earnings. Qualcomm stock slumped 10.0% after the company’s third-quarter results after the market close Wednesday disappointed in terms of sales and guidance.
The company reported adjusted earnings of $1.87 per share, above Street expectations of $1.81 but drastically short of the $3.29 per share it reported a year earlier. Revenue was $8.44 billion, short of the $8.5 billion street consensus.
But Moderna Therapeutics Inc rose 2.1% as it reported better than feared second quarter earnings.
The mNRA vaccine maker reported a net loss of $1.4 billion on $300 million of revenue in its second quarter, representing a $3.62 loss per share – versus market expectations of $3.84 per share.
Albemarle Corp rose 2.0% after it reported second quarter profit was up alongside soaring revenue, driven primarily by higher prices and volumes in its Energy Storage business.
The Charlotte, North Carolina-based lithium producer also nudged up sales guidance for 2023 to between $10.4 billion and $11.5 billion from May’s guidance of $9.8 billion to $11.5 billion.
“>Tech stocks extended Wednesday’s heavy falls ahead of results from two of the sector’s big beasts, Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN), due after the closing bell.
But Moderna Therapeutics Inc (NASDAQ:MRNA) rose 2.1% as it reported better than feared second quarter earnings.
“>10.33am: Service sector growth eases in July – ISM
The US service sector expanded at a more moderate pace in July as it was restrained by a softening of employment growth, according to a closely watched survey.
The Institute for Supply Management’s services index decreased 1.2 points to 52.7 last month.
Anthony Nieves Chair of the ISM’s Services business survey committee said: “”There has been a slight pullback in the rate of growth for the services sector.”
.@ISM’s Anthony Nieves: “(S)light pullback in the rate of growth for the services sector. This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times.” https://t.co/Q0yMnhKnfY #ISMPMI #economy
— Institute for Supply Management (@ism) August 3, 2023
“This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times.”
“The majority of respondents are cautiously optimistic about business conditions and the overall economy.”
Readings above 50 indicate expansion, though the latest figure came in just below expectations.
ISM’s measure of employment at service providers indicated scant hiring during the month.
The ISM said economic activity had expanded for the seventh consecutive month in 37 of the last 38 months, with the lone contraction in December of last year
But Moderna Therapeutics Inc (NASDAQ:MRNA) stock is pointing higher in pre-market, up 1.6%, as it reported better than feared second quarter earnings.
“>Anthony Nieves Chair of the ISM’s Services business survey committee said: “There has been a slight pullback in the rate of growth for the services sector.”
The ISM said economic activity had expanded for the seventh consecutive month, and in 37 of the last 38 months, with the lone contraction in December of last year.
“>10.55am: US Treasury yields at 9-month high
US Treasury yields hit to a nine-month high as a sell-off in the world’s biggest bond market intensified, adding to the woes of the stock market.
The 10-year Treasury yield climbed 0.09 percentage points to 4.16%, extending a rise that began on Wednesday after the US government lifted its issuance target for the coming quarter in the wake of Fitch’s unexpected downgrade of Washington’s credit rating.
The Treasury department announced on Wednesday that it plans to issue US$103 billion in its quarterly refunding next week, an increase of USD7 billion from the prior quarter.
In addition to the refunding, the Treasury said it will also increase the size of its two-year and five-year auctions by US$3 billion each month over the coming three months.
Hedge fund manager Bill Ackman said he was shorting US 30-year debt, citing “large deficits as far as the eye can see”.
“It is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,” the Pershing Square chief executive said in a post on X, formerly Twitter.
I have been surprised how low US long-term rates have remained in light of structural changes that are likely to lead to higher levels of long-term inflation including de-globalization, higher defense costs, the energy transition, growing entitlements, and the greater bargaining…
— Bill Ackman (@BillAckman) August 3, 2023
“From a supply/demand perspective, long-term Treasurys (T) also look overbought.”
“With $32 trillion of debt and large deficits as far as the eye can see and higher refi rates, an increasing supply of T is assured. When you couple new issuance with QT, it is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,” he added.
“>12:05pm: Stocks struggle as yield on 10-year Treasury jumped to 4.17%
US stocks were lower in noon trading on some disappointing earnings as the yield on the benchmark 10-year Treasury surged past 4%.
At midday, the Dow lost 32 points to 35,250 while the S&P 500 eased 9 points at 4,504 and the tech-heavy Nasdaq slipped 3 points to 13,969.
“As yields are drifting higher, it’s putting pressure on stocks. If you saw yields reverse today, I think the stock market would end up in the black,” Sit Investment Associates portfolio manager Bryce Doty said.
Notable movers included shares of Qualcomm Inc, which slid 10% after the chipmaker reported 3Q revenue that missed estimates and issued lighter-than-expected guidance for the current quarter.
“>4:09pm: Market correction has come this week, analyst says
The Dow closed Thursday down 67 points, 0.2%, at 35,215, the Nasdaq Composite lost 14 points, 0.1%, to end at 13,960 and the S&P 500 fell 12 points, 0.3%, to 4,502. The small-cap Russell 200 index slid 5 points, 0.3%, to 1,962.
The S&P 500 finished lower for the third session in a row. It was a choppy session for the benchmarks, with a rise in 10-year Treasury yields to 4.19% weighing on sentiment. That’s the highest such percentage since November 2022.
“Momentum has been quietly eroding over the last few weeks and was the motivation for our correction hunch a few weeks back,” Chris Verrone, Strategas head of technical and macro research, wrote Thursday. “Experience reminds us that such episodes usually work in a three-step process… break, tepid rally, break again,” although the longer-term trend is up.”
“>
4:09pm: Market correction has come this week, analyst says
The Dow closed Thursday down 67 points, 0.2%, at 35,215, the Nasdaq Composite lost 14 points, 0.1%, to end at 13,960 and the S&P 500 fell 12 points, 0.3%, to 4,502. The small-cap Russell 200 index slid 5 points, 0.3%, to 1,962.
The S&P 500 finished lower for the third session in a row. It was a choppy session for the benchmarks, with a rise in 10-year Treasury yields to 4.19% weighing on sentiment. That’s the highest such percentage since November 2022.
“Momentum has been quietly eroding over the last few weeks and was the motivation for our correction hunch a few weeks back,” Chris Verrone, Strategas head of technical and macro research, wrote Thursday. “Experience reminds us that such episodes usually work in a three-step process… break, tepid rally, break again,” although the longer-term trend is up.”
12:05pm: Stocks struggle as yield on 10-year Treasury jumped to 4.17%
US stocks were lower in noon trading on some disappointing earnings as the yield on the benchmark 10-year Treasury surged past 4%.
At midday, the Dow lost 32 points to 35,250 while the S&P 500 eased 9 points at 4,504 and the tech-heavy Nasdaq slipped 3 points to 13,969.
“As yields are drifting higher, it’s putting pressure on stocks. If you saw yields reverse today, I think the stock market would end up in the black,” Sit Investment Associates portfolio manager Bryce Doty said.
Notable movers included shares of Qualcomm Inc, which slid 10% after the chipmaker reported 3Q revenue that missed estimates and issued lighter-than-expected guidance for the current quarter.
10.55am: US Treasury yields at 9-month high
US Treasury yields hit to a nine-month high as a sell-off in the world’s biggest bond market intensified, adding to the woes of the stock market.
The 10-year Treasury yield climbed 0.09 percentage points to 4.16%, extending a rise that began on Wednesday after the US government lifted its issuance target for the coming quarter in the wake of Fitch’s unexpected downgrade of Washington’s credit rating.
The Treasury department announced on Wednesday that it plans to issue US$103 billion in its quarterly refunding next week, an increase of USD7 billion from the prior quarter.
In addition to the refunding, the Treasury said it will also increase the size of its two-year and five-year auctions by US$3 billion each month over the coming three months.
Hedge fund manager Bill Ackman said he was shorting US 30-year debt, citing “large deficits as far as the eye can see”.
“It is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,” the Pershing Square chief executive said in a post on X, formerly Twitter.
I have been surprised how low US long-term rates have remained in light of structural changes that are likely to lead to higher levels of long-term inflation including de-globalization, higher defense costs, the energy transition, growing entitlements, and the greater bargaining…
— Bill Ackman (@BillAckman) August 3, 2023
“From a supply/demand perspective, long-term Treasurys (T) also look overbought.”
“With $32 trillion of debt and large deficits as far as the eye can see and higher refi rates, an increasing supply of T is assured. When you couple new issuance with QT, it is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,” he added.
10.33am: Service sector growth eases in July – ISM
The US service sector expanded at a more moderate pace in July as it was restrained by a softening of employment growth, according to a closely watched survey.
The Institute for Supply Management’s services index decreased 1.2 points to 52.7 last month.
Anthony Nieves Chair of the ISM’s Services business survey committee said: “There has been a slight pullback in the rate of growth for the services sector.”
.@ISM’s Anthony Nieves: “(S)light pullback in the rate of growth for the services sector. This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times.” https://t.co/Q0yMnhKnfY #ISMPMI #economy
— Institute for Supply Management (@ism) August 3, 2023
“This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times.”
“The majority of respondents are cautiously optimistic about business conditions and the overall economy.”
Readings above 50 indicate expansion, though the latest figure came in just below expectations.
ISM’s measure of employment at service providers indicated scant hiring during the month.
The ISM said economic activity had expanded for the seventh consecutive month, and in 37 of the last 38 months, with the lone contraction in December of last year.
9.40am: Stocks extend falls, Qualcomm off 10%
US stocks made a weak to the day as a spike in bonds yields, spurred in part by Fitch’s downgrade of US credit rating, put rate-sensitive shares under pressure.
Shortly after the opening bell the Dow Jones Industrial Average was down 69.89 points, 0.2%, at 35,212.63, the S&P 500 fell 15.95 points, 0.4%, to 4,497.44 and the Nasdaq Composite slipped 39.89 points, 0.3%, to 13,933.56.
Tech stocks extended Wednesday’s heavy falls ahead of results from two of the sector’s big beasts, Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN), due after the closing bell.
In economic news, weekly jobless claims were in line with expectations.
Initial jobless claim in the week that ended July 22 totalled 227,000, up 6,000 from the previous week’s unrevised level of 221,000, in line with the FXStreet-cited market consensus.
The four-week moving average was 228,250, a decrease of 5,500 from the previous week’s unrevised average of 233,750.
It’s another bumper day of earnings. Qualcomm stock slumped 10.0% after the company’s third-quarter results after the market close Wednesday disappointed in terms of sales and guidance.
The company reported adjusted earnings of $1.87 per share, above Street expectations of $1.81 but drastically short of the $3.29 per share it reported a year earlier. Revenue was $8.44 billion, short of the $8.5 billion street consensus.
But Moderna Therapeutics Inc (NASDAQ:MRNA) rose 2.1% as it reported better than feared second quarter earnings.
The mNRA vaccine maker reported a net loss of $1.4 billion on $300 million of revenue in its second quarter, representing a $3.62 loss per share – versus market expectations of $3.84 per share.
Albemarle Corp rose 2.0% after it reported second quarter profit was up alongside soaring revenue, driven primarily by higher prices and volumes in its Energy Storage business.
The Charlotte, North Carolina-based lithium producer also nudged up sales guidance for 2023 to between $10.4 billion and $11.5 billion from May’s guidance of $9.8 billion to $11.5 billion.
9.15am: Weekly jobless claims rise but in line with forecast
Initial claims for unemployment insurance in the US were higher week-on-week, but came in line with market forecasts, according to figures from the US Department of Labor.
Initial jobless claim in the week that ended July 22 totalled 227,000, up 6,000 from the previous week’s unrevised level of 221,000, in line with the FXStreet-cited market consensus.
The four-week moving average was 228,250, a decrease of 5,500 from the previous week’s unrevised average of 233,750.
The figures follow JOLTS job vacancy ADP private payrolls figures earlier in the week and provide the backdrop to Friday’s non-farm payrolls.
8.00am: Wall Street seen weaker ahead of tech earnings
US stocks are expected to nurse modest losses at the open ahead of another bumper day of earnings with tech heavyweights Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) reporting after the closing bell.
Futures for the Dow Jones Industrial Average are down 54.00 points, or 0.15%, for the S&P 500 by 12 points, or 0.3%, and for the Nasdaq Composite by 66 points, or 0.4%.
Wednesday’s session saw the Nasdaq suffer its heaviest loss since February, while the S&P and DJIA also fell following the surprise Fitch credit rating downgrade.
The tech sector will remain in focus today with Apple and Amazon’s numbers. Investors will looking for guidance on Apple’s artificial intelligence plans after it was forced to make drastic cuts to production forecasts for its mixed-reality Vision Pro headset.
Elsewhere, figures are due from ConocoPhillips (NYSE:COP), Kellogg, Expedia (NASDAQ:EXPE), Hasbro (NASDAQ:HAS), Airbnb and Coinbase.
In economic news, economists anticipate initial US state unemployment claims to have ticked up to 226,000 last week after falling to a five-month low of 221,000 last week. Separately, prices paid by businesses for services are expected to have fallen, with economists forecasting the July ISM services purchasing managers’ index reading at 53, down from 53.9 in June.
Qualcomm stock dipped 8.3% in extended trading after the company’s third-quarter results disappointed in terms of sales and guidance.
The company reported adjusted earnings of $1.87 per share, above Street expectations of $1.81 but drastically short of the $3.29 per share it reported a year earlier. Revenue was $8.44 billion, short of the $8.5 billion street consensus.
But Moderna Therapeutics Inc (NASDAQ:MRNA) stock is pointing higher in pre-market, up 1.6%, as it reported better than feared second quarter earnings.
The mNRA vaccine maker reported a net loss of $1.4 billion on $300 million of revenue in its second quarter, representing a $3.62 loss per share – versus market expectations of $3.84 per share.
Warner Bros Discovery Inc was another stock heading upwards, rising 3.0% in pre-market, as it reported narrowed second quarter losses following a bump in revenue.
