(INDEXSP:.INX) futures traded down 11 points overnight due to
unease coming from China. Short-term interbank lending and money
market rates rose as the Chinese central bank declined to inject
cash into the system. In addition, the yuan rose against the dollar
to a 20-year high. The Chinese Shanghai Composite was down 1.25% in
overnight trade on fears that the government would tighten policy
in response to rapidly rising real estate prices.
The S&P 500 closed down 0.54% today and tech stock indices
fared worse. Energy stocks were the worst performers in the S&P
500, consistent with the 2% sell-off in crude oil. Interest-rate
sensitive utility and consumer staples stocks were the best
performers. The FHFA said that August home prices rose 0.3% from
the prior month, which was slower than the 0.8% economist estimate.
Import prices fell 1.0% from a year ago, in line with economist
Carl Icahn announced last night that he sold 2.99 million of his
) over the last two days, more than half of his holdings in the
company. Icahn still holds 4.5% of the company's outstanding
shares. Netflix rose 1.8% today after falling 17.5% from
yesterday's opening trade.
) drastically missed earnings, citing a sharp slowdown in its
mining equipment business, and guided down for the rest of the
year. Caterpillar's sales fell 18% from a year ago, but forecast a
pickup in US economic growth to 3% next year in the US. The stock
fell 6.6% in today's trading.
) earnings were the opposite of Caterpillar's. The aircraft
manufacturer reported solid earnings and raised its full-year
earnings forecast on continued strong aircraft orders. The stock
rose more than 5% to new all-time highs.
Tomorrow's Financial Outlook
Initial jobless claims will be reported tomorrow morning.
Economists expect claims will fall to 340,000 from 358,000 last
week. The 4-week moving average is currently 336,500. Additionally,
the August release of the Job Openings and Labor Turnover Survey
(JOLTS) will be released in the late morning. Economists tend to
look at this data closely for the true underlying health of the
jobs market, though the report is much more delayed than the Labor
Department's non-farm payrolls report.
A slew of manufacturing data is due out from across the globe
before the US market opens tomorrow. China and the eurozone will
release manufacturing and services purchasing managers indices.
Seventy major US companies are scheduled to report earnings
tomorrow. Notable reports include