U.S. stock futures fell on signs of slowing global growth, especially from China. The drop came after retail sales and industrial output data showed slowing economic activity in the country.
China’s retail sales increased by 8.5%, below the 11.5% anticipated by economists. Online sales gained 4.4%. In addition, industrial production gained 6.4% below the expected 7.8% increase.
As investors are recovering from a shock due to falling consumer confidence tied to Delta in China, many are looking to the Federal Reserve to prop up the market in the U.S. Yet, there’s some speculation that Fed could do the opposite.
Investors are speculating that Fed Chair Jerome Powell will use the Jackson Hole symposium in late August to announce a tightening shift in monetary policy.
This week, traders will be looking at this week’s Federal Open Market Committee’s minutes for signs of any shift in messaging.
On Monday, investors will be looking at the Empire State Manufacturing Survey, a monthly survey of manufacturers in New York State conducted by the Federal Reserve Bank of New York. The data will be released before market open. (Story continues below.)
U.S. stock futures dropped in premarket trading, on concerns over slowing growth and a drop in consumer confidence.
|S&P 500 Futures||4,448.00||-15.5||-0.35%|
U.S. Dollar and Treasuries
U.S. Treasury yields dropped. The yield on the 10-year Treasury dropped one basis point. The dollar strengthened.
|U.S. Dollar Index (DXY):||92.64||+0.12||(+0.13%)|
|U.S. 1 Year Treasury Bill||0.079%||-0.005||0.084%|
|U.S. 2 Year Treasury Note||0.209%||-0.004||0.213%|
|U.S. 5 Year Treasury Note||0.772%||-0.005||0.776%|
|U.S. 10 Year Treasury Note||1.278%||-0.008||1.286%|
|U.S. 20 Year Treasury Bond||1.833%||0.001||1.833%|
|U.S. 30 Year Treasury Bond||1.935%||0.005||1.930%|
Stocks To Watch
Stocks of a medical tech company Surgalign Holdings surged after the SEC reports showed a large volume of insider buying. Terry Rich, the president and CEO of Surgalign bought more than one million shares at around $0.93 per share.
Chinese electric vehicle company Nio unveiled a new mass-market brand to compete with companies like Volkswagen and Toyota. “The relationship between Nio and our new mass-market brand will be like that of Audi-Volkswagen and Lexus-Toyota,” the company’s CEO William Li said. Investors did not respond well to the announcement, as the shares dropped.
Shares of a late-stage clinical company Sesen Bio continue to drop after the FDA declined to approve the company’s bladder cancer treatment.
Shares of Cellect Biotechnology rose after the company filed a registration statement in connection to its announced merger with Quoin Pharmaceuticals.
|Nio A ADR||NIO||$39.33||-1.66||-4.05%||1.43M|
|Sesen Bio Inc||SESN||$1.84||-0.27||-12.80%||1.36M|
Commodities To Watch
Oil dropped amid slowing demand in China, as the country is struggling with a covid-19 outbreak. Gold was stable in premarket trading.
|WTI Crude Oil||$67.36||-1.58%|
|Brent Crude Oil||$69.58||-1.43%|
|Global cap||global cap chg.%|
|Symbol||Price||Chg. %||Market Cap.|