MARKET SNAPSHOT: U.S. Stock Futures Steady As All Eyes Are On Jackson Hole, Yellen
26 August 2016 - 11:19PM
Dow Jones News
By Victor Reklaitis and Mark DeCambre, MarketWatch
Nasdaq on track to snap weekly win streak
U.S. stock futures on Friday were little changed in anticipation
of a hotly awaited talk by Federal Reserve chief, Janet Yellen, in
Jackson Hole, Wyo., later this morning.
Ahead of the speech, a second estimate of second-quarter gross
domestic product underscored that the U.S. economy is still
muddling along, growing at a lackluster 1.1% pace--slower than
preliminary reading of 1.2%
(http://www.marketwatch.com/story/second-quarter-gdp-rises-just-12-well-below-forecast-2016-07-29)
as corporate profits fell.
"Stocks barely budged after the GDP reading. "There wasn't
anything really surprising in the GDP data today and certainly not
enough to move the markets ahead of Yellen," said Colin Cieszynski,
chief market strategist at CMC Markets.
Stock-market futures were flirting with positive territory, but
primarily were trading near break-even levels as investors waiting
for Yellen.
The Dow Jones Industrial Average futures were flat at 18,450,
while S&P 500 futures held steady at 2,173.75, tilting in the
green. Nasdaq-100 futures slipped 1.75 points, or less than 0.1%,
lower to 4,780.
Yellen is scheduled to begin speaking in the Rocky Mountains at
10 a.m. Eastern Time, when some market participants believe that
she may signal the U.S. central bank is ready to raise interest
rates in late September. Some analysts are sounding downbeat ahead
of her address.
"Today's Jackson Hole gathering could be quite critical, with
expectations heightened over if Yellen will provide clarity on when
the Fed may break the trend of central bank caution," said Lukman
Otunuga, an analyst at FXTM, in a note.
"If there is a further disconnect between markets and the Fed
then jitter and risk aversion could leave stocks vulnerable to
heavy losses," he added.
Cieszynski concurred on the notion that stocks could be
volatile. "This really does feel like the calm before the storm and
we could see a lot of pent up demand for action burst open once she
starts talking."
Meanwhile, Cleveland Fed President Loretta Mester on Friday on
CNBC echoed the recent hawkish sentiments of other Fed members,
saying "it makes sense" to start moving interest rates higher.
Read more:Yellen to say 'ready' for another rate hike in Jackson
Hole
(http://www.marketwatch.com/story/yellen-to-say-ready-for-another-rate-hike-in-jackson-hole-2016-08-19)
And see:Fed might hike interest rates despite market objections
(http://www.marketwatch.com/story/fed-going-out-to-jackson-hole-to-get-divorce-from-markets-2016-08-23)
On Thursday, the S&P 500 index closed 0.1% lower, while the
Dow shed 0.2%, and the Nasdaq Composite Index was down 5.49 points,
or 0.1%, to 5,212.20, as investors seemed reluctant to make big
bets
(http://www.marketwatch.com/story/wall-street-set-for-losses-as-yellen-speech-draws-closer-2016-08-25)
on the eve of the Fed chairwoman's speech. The S&P is down 0.5%
for the week, as of Thursday's close, and the Dow is 0.6% lower.
The tech-heavy Nasdaq is on track to snap an eight week win streak,
down 0.5% on the week.
Individual movers: Shares in Herbalife Ltd.(HLF) could make
moves following news that billionaire investor Carl Icahn has
recently discussed selling his stake
(http://www.marketwatch.com/story/carl-icahn-considered-selling-herbalife-stake-to-arch-nemesis-bill-ackman-2016-08-26)
in the nutritional-products company to a group including
Herbalife's arch-nemesis Bill Ackman.
Anheuser-Busch InBev NV(ABI.BT)(ABI.BT) warned Friday its beer
megamerger with SABMiller PLC(SAB.JO) could lead to thousands of
job losses
(http://www.marketwatch.com/story/ab-inbev-warns-3-to-be-laid-off-in-merger-2016-08-26)
in the coming years. The Budweiser producer's U.S. listed shares
rose 0.9% in premarket action.
Software company
(http://www.marketwatch.com/story/splunk-beats-expectations-and-raises-forecast-but-stock-still-slumps-2016-08-25)Splunk
Inc.(SPLK), beauty products seller
(http://www.marketwatch.com/story/ulta-shares-weaken-as-outlook-offsets-earnings-beat-2016-08-25)Ulta
Salon Cosmetics & Fragrance Inc.(ULTA) and videogame retailer
(http://www.marketwatch.com/story/gamestop-shares-slide-after-revenue-falls-short-of-street-view-2016-08-25)GameStop
Corp.(GME) all look on track for down days after each company's
stock suffered an earnings-driven drop late Thursday.
Other markets: Oil futures (SPLK) traded lower, hurting
sentiment. European stocks largely edged down, while Asia closed
mixed. Gold futures climbed higher, and a key dollar index
retreated 0.2%.
Other economic reports: Also at that time, a July report on
advance trade in goods is due, with forecasts calling for a deficit
of $62.5 billion.
Meanwhile, the trade gap narrowed
(http://www.marketwatch.com/story/us-trade-gap-narrows-in-july-advance-report-shows-2016-08-26)to
a seasonally adjusted $59.3 billion in July from $64.5 billion in
June, the Commerce Department said Friday.
At 10 a.m. Eastern as Yellen speaks, an August figure for a
consumer-sentiment gauge is expected to come in at 91.0.
(https://twitter.com/auaurelija/status/769056232275574785)
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(END) Dow Jones Newswires
August 26, 2016 09:04 ET (13:04 GMT)
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