Here’s how the major market indicators stack up year-to-date:īefore U.S. In individual names, Arista Networks ( ANET) surged 19.68% following Monday’s after-hours earnings announcement saw revenues rise almost 40%, prompting a number of analyst upgrades and increased price targets. The Dow (0.20%) was the only major index to advance as the S&P 500 declined 0.27% and both the Nasdaq composite and the Russell 2000 fell around 0.45%. Consumer discretionary (-1.13%) and Utilities (-1.22%) were the leading laggards as August trading kicked off. Technology (0.17%) and Industrials (0.30%) posted yesterday’s only sector gains although technically, Financials’ unchanged ending level also counts as a non-negative return. Typically speaking, gold, which is priced in dollars, is a favored safe-haven investment in times of stress and economic uncertainty. credit rating the greenback is trading off today, which may give some lift to oil and gold prices. However, following Fitch’s downgrade for the U.S. The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions. Ratings issued by Standard & Poor’s and Moody’s remain unchanged at AAA.įollowing the recent rebound in the dollar, oil and gold prices traded off yesterday. Last night, Fitch Ratings downgraded the United States of America's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'AA+' from 'AAA'. The Rating Watch Negative was removed, and a Stable Outlook assigned. While many if not all eyes will be on the July ADP Employment Report and what it says about the pace of job creation and wage inflation during the month, today also brings the weekly data for the MBA Mortgage Applications Index and crude oil inventories courtesy of the Energy Information Administration. We have a very thin international economic calendar today, but in its place, we have the second busiest day of the June quarter earnings season on tap. Currently, that report is expected to show 190,000-200,000 jobs added during the month, the Unemployment Rate steady at 3.6%, and average hourly earnings up 4.2% YoY. Once the market has reviewed ADP’s findings, we may see expectations revised for Friday’s July Employment Report. Should we see slower wage gains in July, the degree of those changes and how they stack up against the Fed’s 2% inflation target will be what the stock market focuses on. Over the last few months, job creation has been stronger than expected and a repeat of that in the July data would bolster the case for a soft landing for the economy.įolks who parse that data will also be taking note of the report’s Pay Insights comments following the median change in annual pay for Job-Stayers was 6.4% and 11.2% for Job-Changers in June. economy, down from 497,000 in June and 267,000 in May. That report is expected to show 189,000 jobs added to the U.S. equity futures before too long because at 8:15 AM ET ADP (ADP) will publish its July Employment Report. Today is the second busiest day so far in the current earnings season, and readers will want to revisit U.S.
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