The S&P 500 Futures remain on the downside after falling to another session yesterday as investors were discouraged by Federal Reserve Chairman Jerome Powell’s downbeat comments on the economy. Mr. Powell warned of a long period of weak growth and stagnant incomes due to the coronavirus pandemic. And he said further fiscal stimulus should be provided to prevent long-term economic damage. Meanwhile, the Fed chief said the central bank would not push interest rates below zero.
Later today, the original unemployment claims for the week ending May 9 ($ 2.5 million expected) and the April import price index (-3.2% for the expected month) are reported. In Canada, sales in March are projected at -5.7% per month.
European indices remain under pressure. The German Federal Statistics Office has published the final reading of the CPI for April at + 0.9% (against + 0.8% for the expected year). France’s INSEE has reported 1Q unemployment rate of 7.8% (against expected 8.4%).
Asian indices closed all red. Australia’s official job report shows that the economy shed 594,300 jobs in April (-575,000 expected jobs), while the unemployment rate rose to 6.2% (8.2% expected) from 5.2%.
WTI Futures for crude puts a rebound. USA. The Energy Information Administration (EIA) issued a May 8 weekly report, which states the U.S. commercial crude oil stocks (excluding goods in the strategic petroleum reserve) decreased by 0.7M barrels from the previous week to 531.5 M barrels.
Gold consolidated while the US dollar hit a three-week high following Jerome Powell’s comments.
Gold fell slightly $ 0.65 (-0.04%) to $ 1715.63. EUR / USD fell 27 pips to 1.0791, while GBP / USD fell 24 pips to 1.2208.
Snapshot of American capital
Cisco Systems (CSCO), a leading global provider of networking hardware and software, is expected to gain ground after reporting Q3 adjusted EPS up to $ 0.79, up from $ 0.78 a year ago, at sales down to $ 12.0 billion, also beating consensus from $ 13.0 billion a year earlier.
Tyson Foods (TSN), the largest U.S. producer of processed chicken and beef, will cut prices for some of its beef products by 30%, according to a Dow Jones report.
Fiat Chrysler (FCAU), the automaker, will not distribute a regular dividend in 2020 related to the 2019 fiscal year in light of the impact of the current COVID-19 crisis.