• US stock market, economy and companies update (August 21, 2015)

    Another downdraft in the Shanghai Composite is hammering risk assets today, with the CAC closing down 2.9% and the DAX down 2.7%. The S&P500 traded right down to 2000.5 but has bounced off this key level in the last few minutes. With market tensions building, the VIX volatility index rose to YTD highs around 23.90. The 10-year yield has come in just a bit, down 1.2 bps to trade around 2.054%, a four-month low. As of writing, the DJIA is down 1.74%, the S&P500 is off 1.67% and the Nasdaq is down 2.11%.

    The dollar hit two-month lows against the euro during the European session, rising to 1.1290 before briefly pulling back in the US pre-market. EUR/USD has pushed higher again mid-morning, testing the 200-day moving average above 1.1350. WTI crude is creeping toward $40 however there is moderate resistance at this key psychological level. The contract traded down to $40.10 in heavy volume over the last hour but has popped back to $40.30. After rising 3.2% over the last two sessions, spot gold is up moderately again today, rising 0.40% to $1,157.

    A broad selection of hot momentum names are leading equity markets lower this morning on no news. Shares of Netflix are leading the pack, with NFLX down 6.0% again after a brief stab higher around 10:00ET. Apple has seen sustained loss, with AAPL down more than 3.5% as of writing. TSLA and GILD are both off 2.5% or so as of writing. A host of volatile tech and biotech names are following these boldface names lower mid-morning, recalling the momo-led declines seen earlier this spring.

    Tensions on the Korean peninsula are building after North and South Korea exchanged artillery fire in DMZ. Yesterday, North Korea's Kim Jong Un ordered his army to a "quasi state of war," and this morning there has been more saber-rattling in Pyongyang. Note that there have been reports of US troops on the move near the DMZ. The South Korean Won has lost about 2% against the dollar since yesterday, with the pair up around 1,195.

    Hewlett-Packard released its final earnings report before the company divides into two new publically traded companies. On November 1st, Hewlett-Packard will split into business services firm Hewlett Packard Enterprise and HP Inc., a PC and printer company. In its third quarter, HP said its net income fell 10% y/y and revenue declined 8% y/y. Shares of HPQ are up more than 5% today. Deere's numbers exceeded expectations in its third quarter, although earnings fell 40% y/y and revenue was down 20% y/y, and the firm again reduced its FY15 outlook. On the conference call, Deere executives warned that earning orders for FY16 were looking lower y/y. Shares of DE are down more than 6% but off their worst levels.

    ***Looking Ahead***
    - 13:00 (US) Weekly Baker Hughes Rig Count
    - 14:00 (BR) Brazil July Total Formal Job Creation: -115.8Ke v -111.2K prior
    - 15:00 - (CO) Colombia Central Bank Interest Rate Decision
    - 15:00 (AR) Argentina Jun Economic Activity Index (Monthly GDP) M/M: No est v 0.8% prior; Y/Y: No est v 2.2% prior
    - 17:00 (CO) Colombia Jun Trade Balance: -$0.9Be v -$0.9B prior; Total Imports: $4.3Be v $4.4B prior

    ***Economic data***
    - (IN) India Weekly Forex Reserves w/e Aug 14th: $354.4B v $353.4B prior
    - (BR) Brazil Aug IBGE Inflation IPCA-15 M/M: 0.4% v 0.4%e; Y/Y: 9.6% v 9.6%e
    - (CA) Canada July CPI M/M: 0.1% v 0.1%e; Y/Y: 1.3% v 1.3%e; Consumer Price Index: 127.3 v 127.5e
    - (CA) Canada July CPI Core M/M: 0.0% v 0.0%e; Y/Y: 2.4% v 2.4%e
    - (CA) Canada July CPI (Seasonally Adj) M/M: 0.2% v 0.4% prior; CPI Core (Seasonally Adj) M/M: 0.2% v 0.3% prior
    - (CA) Canada Jun Retail Sales M/M: 0.2%e; Retail Sales Ex Auto M/M: 0.8% v 0.6%e
    - (MX) Mexico Jun Retail Sales M/M: 1.1% v 0.4%e; Y/Y: 5.4% v 4.6%e
    - (US) Aug Preliminary Markit Manufacturing PMI: 52.9 v 53.8e
    - (EU) Euro Zone Aug Advance Consumer Confidence: -6.8 v -6.9e

    [I]Contributed by Trade The News[/I]
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