TradeTheNews.com Weekly
Market Update: Markets Stabilize on European Strength; Harvey Looms Over
Energy
Fri, 25 Aug 2017 16:06 PM EST
US stock markets commenced the week testing more than one month lows in most
cases. The S&P found support just above the 100-day moving average on
Tuesday. As Washington looked to put the controversy surrounding the President
and his reaction to Charlottesville in the rear view mirror, rekindled hopes
for genuine tax reform along with thin summer trading conditions were widely
cited as fostering the turnaround. A host of late season retail earnings
reports surpassed expectations which provided a boost to investor sentiment.
The Russel 2000 led the way higher as investors placed bets small cap US centric
businesses would get the most benefit from tax relief. For the week, the DJIA
gained 0.7%, the S&P500 added 0.7%, and the Nasdaq rose 0.8%.
The greenback retreated further led by strength in the Euro. The economic data,
Europe’s in particular, continued to signal building economic momentum. By
Friday when neither Fed Chair Yellen nor ECB President Draghi directly
addressed monetary policy at the Jackson Hole symposium, the Euro hit fresh one
and half year highs above 1.1920. Gasoline prices moved up late in the week as
it became clear Hurricane Harvey would make landfall in southern Texas and
bring with it up to 30 inches of rain.
MONDAY, AUG 21
BHP.AU Reports FY17 underlying Net $6.73B v $7.3Be; Rev $38.3B v $38.3Be; to
exit US onshore assets
TUESDAY, AUG 22
*(DE) GERMANY AUG ZEW CURRENT SITUATION SURVEY: 86.7 V 85.2E; EXPECTATION
SURVEY: 10.0 V 15.0E
(UK) AUG CBI INDUSTRIAL TRENDS TOTAL ORDERS: 13 V 8E
(US) AUG RICHMOND FED MANUFACTURING INDEX: 14 V 10E
CRM Reports Q2 $0.33 v $0.31e, Rev $2.56B v $2.51Be
WEDNESDAY, AUG 23RD
(FR) FRANCE AUG PRELIMINARY MANUFACTURING PMI: 55.8 V 54.5E (10th month of
expansion)
(EU) ECB's Draghi: Research helps us decide whether a change in facts deserves
a policy response or look through it - comments from Lindau
(DE) GERMANY AUG PRELIMINARY MANUFACTURING PMI: 59.4 V 57.6E (33rd month of
expansion)
(EU) EURO ZONE AUG PRELIMINARY MANUFACTURING PMI: 57.4 V 56.3E (49th month of
expansion)
WMT Partners with Google on voice shopping in a challenge to Amazon’s Alexa -
Recode
*(US) JULY NEW HOME SALES: 571K V 610KE
(EU) EURO ZONE AUG ADVANCE CONSUMER CONFIDENCE: -1.5 V -1.8E
(US) Association of American Railroads weekly rail traffic report for week
ending Aug 19th: 554.0K carloads and intermodal units, +4.4% y/y (32nd straight
week of gains)
(HK) According to Nomura, Macau typhoon to impact casino Aug rev by up to
700bps - financial press
THURSDAY, AUG 24TH
(FR) FRANCE AUG BUSINESS CONFIDENCE: 109 V 108E ; MANUFACTURING CONFIDENCE: 111
V 108E
(UK) Q2 PRELIMINARY GDP Q/Q: 0.3% V 0.3%E; Y/Y: 1.7% V 1.7%E
494.HK Reports H1 Net $101M v $72M y/y, adj Op $172M v $152N y/y, Rev $7.26B v
$7.42B y/y
TIF Reports Q2 $0.92 v $0.88e, Rev $960M v $933Me
(US) JULY EXISTING HOME SALES: 5.44M V 5.55ME
WFM Amazon and Whole Foods announce acquisition to close this Monday; Prime
Members to get discounts at Whole Foods
FRIDAY, AUG 25TH
(US) JULY PRELIMINARY DURABLE GOODS ORDERS: -6.8% V -6.0%E; DURABLES EX
TRANSPORTATION: 0.5% V 0.4%E
(US) Fed Chair Yellen: core reforms boosted financial system; open to reviewing
Volcker rule - comments from Jackson Hole; does not discuss monetary policy
(EU) ECB Draghi: Global recovery is firming up; does not comment on ECB policy
directly or foreign exchange - comments from Jackson Hole
(US) NHC: Hurricane Harvey strengthens to a category 2 storm; dangerously
approaching the Texas Coast
