The S&P 500 futures remain under pressure after they erased gains to close in the red yesterday, as President Donald Trump announced plans to hold a press conference on China. Beijing has just passed a controversial national security law which is widely expected to erode Hong Kong’s autonomy.

Later today, Wholesale Inventories (-0.7% on month in April expected), Personal Income (-6.0% on month expected), Personal Spending (-12.8% on month expected), Market News International’s Chicago Purchasing Managers Index (40.0 in May expected) and the University of Michigan’s Consumer Sentiment Index (74.0 in May expected) will be reported.

European indices are under pressure. The European Commission has posted May CPI at -0.1% (vs +0.1% on year expected). The European Central Bank has reported the eurozone’s M3 money supply in April at +8.3% (vs +8.2% on year expected). The German Federal Statistical Office has reported April retail sales at -5.3% (vs -12.0% on month expected). France’s INSEE has released final readings of 1Q GDP at -5.3% (vs -5.4% on year expected) and May CPI at +0.2% (vs +0.3% on year expected).

- advertisement -

Asian indices closed in the red. This morning, official data showed that Japan’s industrial production declined 9.1% on month in April (-5.7% expected), and retail sales fell 9.6% (-6.9% expected). Meanwhile, jobless rate edged up to 2.6% in April (2.7% expected) from 2.5% in March.

WTI Crude Oil Futures remain under pressure despite a build of 7.9 million barrels in U.S. crude-oil stockpiles last week as reported by the Energy Information Administration.

Gold gains ground while the US dollar is still consolidating before Donald Trump press conference. 

Gold rose 10.15$ (+0.59%) to 1728.48 dollars. The EUR/USD rose 63pips to 1.114 while the GBP/USD gained 26pips to 1.2347.

US Equity Snapshot

Costco Wholesale (COST), an operator of a chain of warehouse stores, reported third quarter EPS of 1.89 dollar, lower than expected, flat year on year, on sales of 37.3 billion dollars, slightly above the consensus, up from 34.7 billion dollars in the year before.

Salesforce.com (CRM), a developer of business software, cut its full year guidance. The company now expects full year sales to be around 20 billion dollars vs a previous forecast of 21-21.1 billion dollars. The company also sees a full year LPS of 0.06 to 0.04 dollar vs an earlier outlook of breaking even or a 0.01 dollar EPS. Separately, Salesforce.com revealed first quarter adjusted EPS of 0.70 dollar, just above estimates, down from 0.93 dollar a year ago, on sales of 4.9 billion dollars, just above consensus, up from 3.7 billion dollars in the previous year.

Nordstrom (JWN), the North American fashion retailer, disclosed first quarter LPS of 3.33 dollars, worse than expected, down from an EPS of 0.23 dollar a year ago on sales of 2.0 billion dollars, below forecasts, down from 3.3 billion dollars in the prior year. Company’s CEO Erik Nordstrom, said that “we have sufficient liquidity to successfully execute our strategy in 2020 and over the longer term.”

Dell Technologies (DELL), a computer technology company, jumped in extended trading after posting better than expected quarterly earnings.

Ulta Beauty (ULTA), an operator of a chain of beauty retailers, announced first quarter LPS of 1.39 dollar, significantly missing estimates, down from an EPS of 3.26 dollars a year ago, on sales of 1.2 billion dollars, as expected, down from 1.7 billion dollars a year earlier.

Previous articleGold Rises As Markets Brace For Trump News On China
Next articlePerfect Storm for Trump
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.