Evening Headlines
Bloomberg:
- Fed Supports Bonds, Dollar Weakens on Inflation. The dollar dropped and Treasuries climbed after odds of another U.S. interest-rate increase this year declined with Federal Reserve meeting minutes showing concern about inflation remaining persistently low. Stock-index futures point to a mixed start for Asian trading. A majority of Fed officials stuck with a forecast that inflation would gradually rise to a 2 percent target over the medium term, according to minutes from the July meeting. However, “many” saw some “likelihood” that it would remain below that level for longer than expected. The minutes didn’t specify when the Fed would begin shrinking its balance sheet this year. Futures on Japan’s Nikkei 225 Stock Average slipped 0.1 percent. Contracts on Australia’s S&P/ASX 200 Index added 0.2 percent, while futures on Hong Kong’s Hang Seng Index added 0.6 percent. Kospi contracts were up 0.3 percent.
- Fed Starts to Wonder If Cornerstone Inflation Model Still Works. (video) Federal Reserve officials are looking under the hood of their most basic inflation models and starting to ask if something is wrong. Minutes from the July 25-26 Federal Open Market Committee meeting showed a revealing debate over why the economy isn’t producing more inflation in a time of easy financial conditions, tight labor markets and solid economic growth. The central bank has missed its 2 percent price goal for most of the past five years. Still, a majority of FOMC participants favor further rate increases. The July minutes showedan intensifying debate over whether that is the right policy response.
- Victoria's Secret Owner Plunges After Delivering Weak Forecast. L Brands Inc.(LB) tumbled as much as 10 percent in late trading after disappointing investors with its profit forecast, a sign that the company’s comeback is still a ways off.
Wall Street Journal:
- Fed Officials Split Over Timing of Next Rate Increase. Minutes from July’s policy meeting show officials agreed to soon start drawing down the central bank’s holdings.
- Baltimore Removes Confederate Statues Overnight. City officials didn’t announce the removal ahead of time to avoid demonstrations.
- Apple(AAPL) Readies $1 Billion War Chest for Hollywood Programming. Company immediately becomes a considerable competitor in crowded market for original shows.
Fox News:
CNBC:
Zero Hedge:
Zero Hedge:
Night Trading
Earnings of Note
Company/Estimate
8:30 am EST
- Asian equity indices are unch. to +.5% on average.
- Asia Ex-Japan Investment Grade CDS Index 82.25 -1.5 basis points.
- Asia Pacific Sovereign CDS Index 21.25 -1.0 basis point.
- Bloomberg Emerging Markets Currency Index 73.81 +.01%.
- S&P 500 futures -.12%.
- NASDAQ 100 futures -.17%.
Earnings of Note
Company/Estimate
- (BABA)/.93
- (BKE)/.23
- (WMT)/1.07
- (CRMT)/.97
- (AMAT)/.83
- (GPS)/.53
- (ROST)/.77
- (ZOES)/.02
8:30 am EST
- Initial Jobless Claims for last week are estimated to fall to 240K versus 244K the prior week.
- Continuing Claims are estimated to rise to 1955K versus 1951K prior.
- Philly Fed Business Outlook for August is estimated to fall to 18.0 versus 19.5 in July.
- Industrial Production MoM for July is estimated to rise +.3% versus a +.4% gain in June.
- Capacity Utilization for July is estimated to rise to 76.7% versus 76.6% in June.
- Manufacturing Production for July is estimated to rise +.2% versus a +.2% gain in June.
- The Leading Index for July is estimated to rise +.3% versus a +.6% gain in June.
- None of note
Other Potential Market Movers
- The Eurozone CPI report, Australia Unemployment report Bloomberg Economic Expectations Index for August and weekly Bloomberg Consumer Comfort Index could also impact trading today.
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