Daily Market Update

Daily Market Update

Daily Market Update Wall St. down as investors weigh options
US investors have been opting for higher yields from bonds and currency markets in the last few days amid a range of mixed economic data. Wednesday’s session for Wall Street saw the Dow and S&P close lower with the Nasdaq ending flat. The ADP employment report was weaker than analysts had expected and all eyes will be on Friday’s Labor stats. In Asia Thursday regional concerns have prompted a continued sell-off with growth in Australia and tightening of margin financing restrictions in China among the issues. Tokyo re-opened after a public holiday in the previous session but all major Asian markets have closed lower. In Europe Greece is still a worry as despite a 200 million euro payment this week to the IMF there is a larger payment due next week. The UK general election is taking place and the polls suggest no party with have an overall majority, adding to uncertainty for the market. All major European indexes are trading lower so far.

US stock futures are trending lower. Oil is trending higher (Brent $68.29, WTI $61.23 at 5.50am ET). Gold is trending lower.
 
Today’s data
Chain store sales
Challenger job-cut report at 7.30am ET
Jobless claims at 8.30am ET
Bloomberg consumer comfort index at 9.45am ET
Consumer credit at 3.00pm ET
Alibaba, CBS and Molson Corrs are among the companies reporting earnings today.
 
Tesla reports loss but not as bad as expected
Tesla’s results showed a loss of 36 cents per share on revenue of $1.10 billion yesterday but that exceeded the expectations of analysts who were predicting 50 cents on $1.04 billion. The quarterly results led to a 2 per cent rise in the firm’s share price. The company delivered slightly more cars than previously expected and also recently released plans for its home battery.
 
Google puts $150 million into diversity
Google’s search for a more diverse workforce has been backed up by a new commitment of $150 million by the California company. Half of the money will go to outside organizations while the rest will be used to increase inclusivity internally reports CNN. Among the plans are to send Google engineers to traditionally Black universities and working with Disney to promote positive depictions of girls in computer science.
 
Fed boosts its portfolio as bonds reach expiry
With bonds approaching expiry the Federal Reserve is taking steps to ensure that its large balance sheet is not suddenly cut. The central bank is continuing to buy mortgage and Treasury bonds to keep the $4.5 trillion balance sheet topped up. It says it will continue to reinvest until it raises interest rates.