• US stock market, economy and companies update (September 25, 2015)

    The very good US GDP reading has sent US and European equities higher this morning, while sovereign yields reflecting the risk-on sentiment. The ten-year UST yield is up 4.8 bps to 2.175%, the DJIA is up 1.10%, the S&P500 has added 0.86% and the Nasdaq is up 0.37%.

    The third and final reading of US second-quarter GDP was raised to +3.9% from +3.7% in the preliminary reading and +2.3% in the advance data, with the additional strength coming from the services component of consumer spending. Nonresidential fixed investment, a key measure of business investment, rose to +4.1% from +3.2% in the preliminary data. Expectations for Q3 are lower, with the consensus view for US GDP in the quarter just above +2.0%. EUR/USD was stabbing toward 1.1130 in the US premarket but has risen back toward 1.1200 as of writing.

    Shares of Nike have surged 9% after the firm's very strong first quarter earnings. Revenue and profits both beat expectations, and the firm said that ex-FX, its forward orders were running +17% y/y. Shares of athletic footwear retailer Foot Locker are up 3% on the report. Meanwhile, sports retailer Finish Line is down 16% as investors worried about its climbing inventory levels, lower margins and weak sales comps. Former mobile powerhouse BlackBerry is off 5% after broadly missing expectations, on a big revenue contraction.

    Under intense pressure from conservative GOP members, House Speaker John Boehner said he would resign from Congress at the end of October. A government shutdown was looming as conservatives pushed Boehner to delay passage of continuing funding resolutions over issues related to Planned Parenthood and the Iran nuclear deal, however there is a feeling that Boehner's departure ensures a short-term funding resolution will be passed in the days ahead. In the medium term, there are fears that a more conservative speaker may revive prior attempts to use the upcoming debt ceiling issue to force a shutdown, possibly later in the fall, with negative implications for the US economy and Fed policy.

    Looking Ahead
    - 13:00 (US) Weekly Baker Hughes Rig Count
    - 13:35 (US) Fed's George (non-voter, hawk)
    - 15:00 (AR) Argentina Q2 Current Account Balance: -$ v -$3.7B prior

    Economic Data
    - (BR) Brazil Sept FGV Construction Costs M/M: 0.22% v 0.80% prior
    - (BR) Brazil Aug PPI Manufacturing M/M: 1.29% v 0.70% prior; Y/Y: 8.49% v 7.60% prior
    - (US) Q2 Final GDP Annualized Q/Q: 3.9% v 3.7%e; Personal Consumption: 1.9% v 3.2%e
    - (US) Q2 Final GDP Price Index: 2.1% v 2.1%e; Core PCE Q/Q: 1.9% v 1.8%e
    - (MX) Mexico Aug Trade Balance: -$2.8B v -$1.7Be
    - (US) Sept Preliminary Markit Services PMI: 55.6 v 55.6e; Composite PMI: 55.3 v 55.7 prior
    - (US) Sept Final University of Michigan Confidence: 87.2 v 86.5e

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