supermarket checkout retailers

The Dow, S&P and NASDAQ all hit new highs yesterday sending positive momentum into Asia Pacific trading overnight. The Nikkei gained 1.1% on its return from a holiday while the Hang Seng rose 0.8% and Shenzen jumped 3.1% despite soft China retail sales and industrial production. The FTSE and Dax are flat following weak UK construction data and mixed European GDP reports.

 

US index futures are holding on to yesterday's gains with traders awaiting today's US retail sales report and looking for confirmation of strong consumer spending seen in retailer earnings. Macy's soared 17% yesterday while Nords‎trom beat the street by a wide margin after the close and could be in the spotlight today. Strength on the consumer side could add to the case for a more hawkish Fed. Yesterday SF Fed President Williams indicated he is still looking for one rate hike this year (my guess is December after the election).

 

Crude oil and related markets like CAD, NOK and energy stocls are also in focus again today. WTI has paused following a bib pop yesterday on signs from Saudi Arabia that there could be side discussions about stabilizing the market between OPEC and non-OPEC producers at an energy conference next month in Algeria.‎

 

Today's Baker Hughes rig count may also influence trading. Much has been made lately about an uptick from about 400 to 460 but traders should recognize activity usually bounces back in the summer as spring breakup ends, and road bans on heavy equipment movement are lifted. At this time a year ago there were about 880 rigs active so exploration activity remains really slow.

 

 

Corporate News

 

Nordstrom                    $0.67 vs street $0.56

 

Nvidia                           $0.40 vs street $0.37

 

 

Economic News

 

China industrial production         6.0% vs street 6.2%

China retail sales                       10.2% vs street 10.5%

China fixed assets                     8.1% vs street 8.9%

China M2 money supply                        10.2% vs street 11.0%

China foreign investment           (1.6%) vs street 5.5%

 

UK construction output              (2.2%) vs street (2 1%)

 

Germany Q2 GDP                     1.8% vs street 1.4% vs previous 1.6%

Poland Q2 GDP                                    3.1% vs street 3.3%

Italy Q2 GDP                             0.7% vs street 0.8%

Greece Q2 GDP                        (0.1%) vs street (1.8%), previous revised up to (0.8%) from (1.3%)

Greece Q2 GDP/quarter             0.3% vs street (0.2%)

Eurozone Q2 GDP                     1.6% as expected

 

Eurozone industrial production   0.4% vs street 0.7%

Germany consumer prices         0.4% as expected

Spain consumer prices              (0.6%) as expected

 

NZ Business PMI                        55.8 vs previous 57.7

NZ Q2 retail sales                      2.3% vs street 1.0% vs previous 0.8%

 

 

Upcoming significant economic announcements include:

 

8:30 am EDT                 US retail sales                           street 0.4% vs previous 0.6%

8:30 am EDT                 US retail ex auto                        street 0.3%

8:30 am EDT                 US producer prices                   street 0.2%

8:30 am EDT                 US core PPI                               street 1.2%

 

8:30 am EDT                 Canada Teranet house prices     previous 10.0%

 

10:00 am EDT               US consumer sentiment             street 91.5

1:00 pm EDT                 US Baker Hughes drill rigs         previous 464

 

 

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