• US stock market, economy and companies update (August 14, 2015)

    Weaker-than-expected preliminary second quarter GDP data out of France, Germany and Italy drove European markets into the red this morning. US equity markets made a brief run higher in the first 30 minutes of cash trading but have deteriorated mid-morning. As of writing, the DJIA is up 0.15%, the S&P500 is flat and the Nasdaq is down 0.18%.

    After three straight days of depreciation, the PBoC strengthened the yuan 0.5% in its Friday fixing. EUR/USD saw a modest move higher in the US premarket as the pair tested toward the 1.1190 level but fell short and then rapidly dropped back to 1.1110. Crude made a run for $43 around the open of cash equity trading but then fell back to $42.30 mid morning. Brent remains well contained in the $49 handle.

    On the surface, the US July industrial production report was decent. The headline figure was better than expected and the June figure was revised slightly higher. A closer analysis shows that the gain was entirely accounted for by a 10.6% spike in the motor vehicles and parts sector, reflecting lighter-than-usual July factory retooling shutdowns. These gains may be reversed in August. The PPI numbers showed incremental gains in producer prices; July CPI is due next Wednesday.

    Shares of JC Penny are up 7% after the firm's quarterly loss came in lower than expected on good growth in sales comps and modest y/y revenue growth. The firm raised its FY EBITDA guidance and made very positive comments about its Fall outlook on the conference call. Nordstrom is up 3.5% but off its best levels after a widely beating EPS expectations in its second quarter and adjusting its FY view slightly higher. Tesla increased its share offering by nearly 30% on strong demand. Among the biggest losers is Applied Materials, which offered a weak fourth-quarter forecast despite a relatively solid showing in its third quarter.

    Despite the turmoil on Chinese equity markets, the management buyouts of US-listed Chinese firms continue. This morning, WuXi disclosed it reached a deal with a buyout group that includes the firm's CEO and chairman to sell the company for $46/ADS, an 11% premium for its Thursday closing price. Note that the buyout group had offered a non-binding proposal at $46/ADS back in April, although shares of WX have been trading below that level over the last four months, raising doubts about the deal. WX is trading around $43.50.

    ***Looking Ahead***
    - 13:00 (US) Weekly Baker Hughes Rig Count data
    - 14:00 (CO) Colombia Central Bank July Monetary Policy Minutes
    - 15:00 (AR) Argentina July National Urban CPI M/M: 1.3%e v 1.0% prior; Y/Y: 14.9%e v 15.0% prior
    - 15:00 (AR) Argentina July Wholesale Price Index M/M: No est v 1.3% prior; Y/Y: No est v 13.4% prior
    - 17:00 (CO) Colombia Jun Retail Sales Y/Y: 3.4%e v 2.7% prior
    - 17:00 (CO) Colombia Jun Industrial Production Y/Y: -0.9%e v -3.97% prior

    ***Economic Data***
    - (PT) Portugal Q2 Labour Costs Y/Y: 1.2% v 4.5% prior
    - (IE) Ireland Jun Trade Balance: 4.1B v 3.9B prior
    - (IL) Israel July CPI M/M: 0.2% v 0.2%e; Y/Y: -0.3% v -0.3%e
    - (BR) Brazil Aug FGV Inflation IGP-10 M/M: 0.3% v 0.5%e
    - (PL) Poland July CPI Core M/M: 0.2% v 0.0%e; Y/Y: 0.4% v 0.4%e
    - (IS) Iceland July Unemployment Rate: 2.6% v 2.6% prior
    - (US) July PPI Final Demand M/M: 0.2% v 0.1%e; Y/Y: -0.8% v -0.9%e
    - (US) July PPI Ex Food and Energy M/M: 0.3% v 0.1%e; Y/Y: 0.6% v 0.5%e
    - (US) July PPI Ex Food, Energy, Trade M/M: 0.2% v 0.1%e; Y/Y: 0.9% v 0.7%e
    - (CA) Canada Jun Manufacturing Sales M/M: 1.2% v 2.7%e
    - (CA) Canada July Existing Home Sales MoM: -0.4% v -0.8% prior
    - (IN) India July Trade Balance: -$12.8B v -$11.1Be; Exports Y/Y: -10.3% v -15.8% prior; Imports Y/Y: -10.3% v -13.4% prior
    - (BE) Belgium Jun Trade Balance: 1.9B v 0.5B prior
    - (US) July Industrial Production M/M: 0.6% v 0.3%e; Capacity Utilization: 78.0% v 78.0%e; Manufacturing Production: 0.8% v 0.4%e
    - (US) Aug Preliminary University of Michigan Confidence: 92.9 v 93.5e
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.