Futures Pointing To Roughly Flat Open On Wall Street
19 Agosto 2024 - 10:13AM
IH Market News
The major U.S. index futures are currently pointing to a roughly
flat open on Monday, with stocks likely to show a lack of direction
following the rally seen in the previous week.
Traders may be reluctant to make significant moves following
recent volatility in the markets, which saw the markets fall
sharply early this month before showing a substantial rebound over
the past several sessions.
The U.S. economic calendar also starts the week relatively quiet
following last week’s avalanche of data, although key events are
likely to attract attention later in the week
The minutes of the Federal Reserve’s latest monetary policy
meeting may shed additional light on the outlook for interest rates
along with remarks by Fed Chair Jerome Powell and other Fed
officials at the Jackson Hole Economic Symposium.
According to CME Group’s FedWatch Tool, there is a 73.5 percent
of a quarter point rate cut next month and a 26.5 percent chance of
a half point rate cut.
Among individual stocks, shares of Advanced Micro Devices
(NASDAQ:AMD) are moving notably higher in pre-market trading after
the chipmaker announced an agreement to acquire server maker ZT
Systems in a cash and stock transaction valued at $4.9 billion.
After showing a lack of direction early in the session, stocks
moved mostly higher over the course of the trading day on Friday.
The major averages climbed more firmly into positive territory
after bouncing back and forth across the unchanged line in early
trading.
The major averages pulled back off their best levels late in the
day but still closed modestly higher. The Dow climbed 96.70 points
or 0.2 percent to 40,659.76, the Nasdaq rose 37.22 points or 0.2
percent to 17,631.72 and the S&P 500 edged up 11.03 points or
0.2 percent to 5,554.25.
For the week, the Nasdaq soared by 5.3 percent, the S&P 500
spiked by 3.9 percent and the Dow surged by 2.9 percent.
The strength that has emerged on Wall Street may have reflected
recent upward momentum, with the major averages extending the
upward trend seen over the past several sessions.
The Nasdaq and the S&P 500 closed higher for the seventh
consecutive session and more than offset the steep drop seen early
this month.
The buying interest also came as recent data has eased concerns
about the economic outlook while also increasing confidence the
Federal Reserve will cut interest rates next month.
While yesterday’s upbeat retail sales data has reduced the
likelihood of a 50 basis point rate cut, the Fed is still widely
expected to cut rates by at least 25 basis points.
In U.S. economic news, preliminary data released by the
University of Michigan showed consumer sentiment in the U.S. has
improved by more than expected in the month of August.
The University of Michigan said its consumer sentiment index
rose to 67.8 in August after falling to 66.4 in July. Economists
had expected the index to inch up to 66.9.
The consumer sentiment index regained ground after hitting its
lowest level since November 2023 in the previous month.
On the inflation front, the report said year-ahead and long-term
inflation expectations were both unchanged from the previous month
at 2.9 percent and 3.0 percent, respectively.
Meanwhile, the Commerce Department released a report showing a
sharp pullback by new residential construction in the month of
July.
The report said housing starts plunged by 6.8 percent to an
annual rate of 1.238 million in July after jumping by 1.1 percent
to a revised rate of 1.329 million in June.
Economists had expected housing starts to slump by 1.7 percent
to an annual rate of 1.330 million from the 1.353 million
originally reported for the previous month.
With the sharp pullback, housing starts tumbled to their lowest
level since hitting an annual rate of 1.053 million in May
2020.
The Commerce Department said building permits also plummeted by
7.0 percent to an annual rate of 1.396 million in July after
surging by 3.9 percent to a revised rate of 1.454 million in
June.
Building permits, an indicator of future housing demand, were
expected to decrease by 1.1 percent to an annual rate of 1.430
million from the 1.446 million originally reported for the previous
month.
Gold stocks moved significantly higher over the course of the
session, resulting in a 3.0 percent surge by the NYSE Arca Gold
Bugs Index. The rally by gold stocks came amid a sharp increase by
the price of the precious metal.
Considerable strength also emerged among telecom stocks, as
reflected by the 1.3 percent gain posted by the NYSE Arca North
American telecom Index.
Banking and networking stocks also saw notable strength on the
day, while airline stocks gave back ground after soaring during
Thursday’s session.
Advanced Micro Devices (NASDAQ:AMD)
Gráfico Histórico do Ativo
De Jul 2024 até Ago 2024
Advanced Micro Devices (NASDAQ:AMD)
Gráfico Histórico do Ativo
De Ago 2023 até Ago 2024