Index Futures Rebound As Yuan Worries Ease
Zacks Investment Research | Aug 07, 2019 10:02PM ET
Thursday, August 8, 2019
U.S. stocks futures inched higher ahead of trading on Thursday after the People’s Bank of China fixed the yuan’s daily reference rate versus the dollar at a stronger than expected level. Fresh data on the world’s second largest economy indicated that the fallout of the ongoing U.S.-China trade war has not been as grievous as earlier feared.
Earlier today, China’s central bank fixed the yuan’s daily midpoint versus the dollar weaker than the psychological level of 7 for the first time since 2008. However, this was still better than the level most economists were expecting. This indicates that China is keen on stabilizing its currency quickly. Further, China’s trade surplus for July exceeded expectations, indicating that the impact of the trade war had been overestimated.
Ahead of the opening, consumer staples giant Kraft Heinz (NASDAQ:KHC) and Keurig Dr Pepper (NYSE:KDP) released 1H19 and second-quarter earnings respectively. While both companies beat earnings estimates, they fell short of sales expectations. Meanwhile, Uber Technologies (NYSE:UBER) and Activision Blizzard (NASDAQ:ATVI) are expected to release second-quarter earnings figures after the market close.
Markets ended moderately higher on Wednesday after major benchmarks recovered from losses incurred earlier in the session. While, the Dow ended in the red, the S&P 500 and the Nasdaq closed in the green. Meanwhile, central banks of India, New Zealand and Thailand announced interest rate cuts.
The Dow Jones Industrial Average decreased less than 0.1%, to close at 26,007.07. The S&P 500 increased 0.1% to close at 2,883.98. The tech-laden Nasdaq Composite Index closed at 7,862.83, gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.6% to close at 19.23. Decliners outnumbered advancers on the NYSE by a 1.04-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored declining issues.
The Dow dipped 22.5 points to close in the red due to broad-based losses. At its session lows, the Dow had dropped as much as 589 points. Shares of Caterpillar (NYSE:CAT) lost 1.1% and weighed on the 30-stock index. The stock carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.