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- China Plans $29 Billion in Special Loans to Troubled Developers
- Pandemic Bolsters China’s Position as the World’s Manufacturer
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- Europe’s Natural-Gas Crunch Sparks Global Battle for Tankers
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- Wall Street Bears Take Revenge After a $7 Trillion Rally
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- Credit Suisse Investment Bankers Are Bracing for Brutal Cutbacks
- Big Banks Expected to Rack Up More Than
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- You Can Get a $7,500 Tax Credit to
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S&P 500 futures are down 46 points and are trading 1.2% below fair value. The Nasdaq 100 futures are down 194 points and are 1.6% below fair value. The Dow Jones Industrial Average futures are down 302 points and are trading 0.9% below fair value.
Futures for the major indices indicate a lower open with market participants still feeling the market is due for a consolidation period after getting ahead of itself with recent gains. There is some anxiousness in play this morning ahead of the Jackson Hole Fed symposium this week with Chairman Powell set to speak on Friday.
In other central bank news, European Central Bank policymaker Nagel said that the ECB must keep raising rates regardless of a risk of recession.
On the flip side, the People's Bank of China lowered its one-year loan prime rate by five basis points to 3.65% and the five-year loan prime rate was lowered by 15 bps to 4.30%.
WTI crude oil futures are down 0.1% to $90.40/bbl. Natural gas futures are up 4.8% to $9.78/mmbtu. Unleaded gasoline futures are down 0.4% to $3.00/gal.
Treasury yields are mixed with the 2-yr note yield up one basis point to 3.26% while the 10-yr note yield is down one basis point to 2.97%.
In corporate news:
- DocuSign (DOCU 63.01, -2.91, -4.41%): downgraded to Sector Perform from Outperform at RBC Capital Mkts
- Netflix (NFLX 234.10, -7.06, -2.93%): downgraded to Sell from Hold at CFRA; price target cut to $238 from $245.
- AMC Entertainment (AMC 12.45, -5.57, -30.91%): new APE shares supposed to start trading at NYSE today.
- Signify Health (SGFY 29.51, +8.31, +39.20%): press reports suggest Amazon (AMZN), UnitedHealth (UNH), and CVS (CVS) all aiming to acquire SGFY.
- Tesla (TSLA 871.00, -19.00, -2.13%): CEO Elon Musk tweets "After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th. Current price will be honored for orders made before Sept 5th, but delivered later"
Reviewing overnight developments:
- Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: -0.6%, China's Shanghai Composite: +0.6%, India's Sensex: -1.5%, South Korea's Kospi: -1.2%, Australia's ASX All Ordinaries: -1.0%.
- Economic data was limited:
- Hong Kong's July CPI 1.9% yr/yr (expected 2.0%; last 1.8%)
- In news:
- Several Chinese developers issued profit warnings while the People's Bank of China lowered its one-year loan prime rate by five basis points to 3.65%. The five-year loan prime rate was lowered by 15 bps to 4.30%.
- The approval rating of Japan's cabinet office fell to a record low of 36%.
- South Korea's exports through the first 20 days of August were up 3.9% yr/yr while chip exports were down 7.5% yr/yr.
- Economic data was limited:
- Major European indices trade lower across the board with Germany's DAX (-1.6%) showing relative weakness while the euro has revisited parity against the dollar. STOXX Europe 600: -0.8%, Germany's DAX: -1.6%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -1.2%, Italy's FTSE MIB: -1.4%, Spain's IBEX 35: -0.8%.
- No economic data today
- In news:
- Germany's economy minister warned that Russia is expected to reduce the supply of gas to Europe this winter.
- European Central Bank policymaker Nagel said that the ECB must keep raising rates regardless of a risk of recession.
- Dockworkers at the U.K.'s busiest terminal will strike for eight days.