• 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]
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.