Stock Market Update from Briefing.com

Stock Market Update from Briefing.com

4:15 pm:

[BRIEFING.COM] The stock market ended a choppy session on a modestly lower note as investors maintained a cautious posture ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen. The Dow Jones Industrial Average (-0.2%) finished behind the S&P 500 (-0.1%) and the Nasdaq Composite (-0.1%).

The benchmark index traversed a narrow ten-point trading range as equity indices continued to languish below recently-established record highs. The Thursday affair was hallmarked by thin trading conditions, a hodgepodge of earning results, and deviating sector leadership from the heavily-weighted technology (+0.1%), financial (+0.3%), consumer discretionary (-0.4%), and health care (-0.8%) sectors.

Equities began the session on a lower note as global markets tilted to the downside. European bourses underperformed following a weaker-than-expected reading of Germany's IFO Business Climate survey for August. However, relatively light volume and the potential market-moving nature of Chair Yellen's Friday remarks also likely contributed to increased volatility in overseas markets.

The major U.S. indices stumbled at the start of the session as disappointing quarterly results and/or guidance from the likes of Dollar Tree (DLTR 85.50, -9.43), Dollar General (DG 75.61, -16.18), and Signet Jewelers (SIG 83.44, -12.06) weighed on investor sentiment. Early morning Fed speak may have also dampened risk appetite after a few officials talked up the potential of a rate hike in the near term. 

The S&P 500 (-0.1%) briefly fell to the 2170/2171 price level before reversing back towards its flat line. However, the broader market was unable to maintain its footing near those levels and slipped back towards its low in the final hour. The benchmark index finished in the bottom of today's trading range, but five sectors still ended in the green. The telecom services (+0.4%) and materials (+0.5%) sectors settled in front of the pack while consumer staples (-0.4%), consumer discretionary (-0.4%) and health care (-0.8%) underperformed.

The countercyclical health care sector (-0.8%) ended its day at the bottom of the leaderboard as biotechnology underperformed. In the group, Mylan Labs (MYL 42.85, -0.30) finished lower by 0.7% as participants weighed fresh criticisms of the drug maker. Mylan surrendered a 4.5% gain as recently-announced initiatives to lower the cost of its EpiPen device were deemed insufficient. Separately, St. Jude Medical (STJ 77.82, -4.06) declined 5.0% after Muddy Waters Capital issued bearish commentary on the name and disclosed a short position in the stock. The firm cited potential cyber security vulnerabilities for its negative view on St. Jude.

Retail names underperformed in the consumer discretionary space (-0.3%) as disappointing results and guidance from Dollar Tree (DLTR 85.50, -9.43), Dollar General (DG 75.61, -16.18), and Signet Jewelers (SIG 83.44, -12.06) overshadowed positive reports from Tiffany & Co (TIF 73.28, +4.41) and Guess? (GES 18.20, +3.30). The broader SPDR S&P Retail ETF (XRT 45.36, -0.26) ended lower by 0.6%, extending its week-to-date loss to 1.3%.

In the technology space (+0.1%), the high-beta chipmakers outperformed, evidenced by the 0.4% gain in the PHLX Semiconductor Index. In the group, Micron (MU 16.20, +0.69) jumped 4.5% after Nomura increased its price target on the stock to $20 from $16. In the broader sector, Salesforce.com (CRM 80.16, +2.34) gained 3.0% amid takeover rumors. The broader sector gained 0.1%, extending is month-to-date advance to 1.8%. 

Treasuries ended on a lower note as yields rose through the curve. The yield on the benchmark 10-yr note finished higher by one basis point (1.58%) while the yield on the 2-yr note finished at 0.79% (+2 bps).

Today's participation was below the recent average as fewer than 697 million shares changed hands at the NYSE floor.

Today's economic data included weekly initial claims and Durable Goods Orders for July: 

  • Initial jobless claims for the week ending August 20 slipped to 261,000 (Briefing.com consensus 265,000) from the prior week's unrevised reading of 262,000.
    • Continuing claims for the week ending August 13 were 2.145 million, down 30,000 from the prior week's unrevised reading.
  • Continuing claims for the week ending August 13 were 2.145 million, down 30,000 from the prior week's unrevised reading.
  • Durable goods orders increased 4.4% in July (Briefing.com consensus +3.5%) on the back of a 10.5% increase in transportation equipment orders, which was fueled by an 89.9% increase in nondefense aircraft and parts orders.
    • Orders for the manufacturing sector have picked up again after declining in both May and June.
    • Excluding transportation, orders were up 1.5% (Briefing.com consensus +0.4%), paced by gains in nearly all categories.
  • Orders for the manufacturing sector have picked up again after declining in both May and June.
  • Excluding transportation, orders were up 1.5% (Briefing.com consensus +0.4%), paced by gains in nearly all categories.

For further details on these economic releases, be sure to visit Briefing.com's Economic Calendar page.

Tomorrow's economic data will include the second estimate of Q2 GDP (Briefing.com consensus 1.1%) and July International Trade in Goods, which will each cross the wires at 8:30 ET. Separately, the final reading of the University of Michigan Consumer Sentiment Survey for August (Briefing.com consensus 90.6) will be released at 9:45 ET. 

  • Russell 2000 +9.0% YTD
  • S&P 500 +6.3% YTD
  • Dow Jones +5.9% YTD
  • Nasdaq Composite +4.1% YTD

3:30 pm: [BRIEFING.COM]

  • Commodities, as measured by the Bloomberg Commodity Index, are trading nearly flat, -0.02% around the 85.05 level
  • Crude oil reversed initial losses despite comments from the Saudi minister regarding lack of meaningful production freeze talks
    • October crude oil futures rose $0.57 (+1.2%) to $47.33/barrel
  • October crude oil futures rose $0.57 (+1.2%) to $47.33/barrel
  • Natural gas closed near session highs after EIA data showed a smaller-than-expected build compared to Consensus
    • September natural gas closed $0.05 higher (+1.8%) at $2.85/MMBtu
    • EIA highlights:
      • Working gas in storage was 3,350 Bcf as of Friday, Aug 19, 2016, according to EIA estimates.
      • Natural gas inventory showed a build of +11 bcf vs expectations for inventory to be a build of approximately +18 bcf.
      • Stocks were 275 Bcf higher than last year at this time and 350 Bcf above the five-year average of 3,000 Bcf.
      • At 3,350 Bcf, total working gas is above the five-year historical range.
  • September natural gas closed $0.05 higher (+1.8%) at $2.85/MMBtu
  • EIA highlights:
    • Working gas in storage was 3,350 Bcf as of Friday, Aug 19, 2016, according to EIA estimates.
    • Natural gas inventory showed a build of +11 bcf vs expectations for inventory to be a build of approximately +18 bcf.
    • Stocks were 275 Bcf higher than last year at this time and 350 Bcf above the five-year average of 3,000 Bcf.
    • At 3,350 Bcf, total working gas is above the five-year historical range.
  • Working gas in storage was 3,350 Bcf as of Friday, Aug 19, 2016, according to EIA estimates.
  • Natural gas inventory showed a build of +11 bcf vs expectations for inventory to be a build of approximately +18 bcf.
  • Stocks were 275 Bcf higher than last year at this time and 350 Bcf above the five-year average of 3,000 Bcf.
  • At 3,350 Bcf, total working gas is above the five-year historical range.
  • In precious metals, gold ended around 4-week lows as the dollar index traded nearly flat
    • December gold ended today's session down $5.40 (-0.4%) to $1324.50/oz
  • December gold ended today's session down $5.40 (-0.4%) to $1324.50/oz

3:00 pm:

[BRIEFING.COM] The major averages remain just below their flat lines with the S&P 500 down 0.2%.

Five sectors trade in the red with consumer discretionary (-0.4%), consumer staples (-0.4%), and health care (-1.1%) rounding out the leaderboard. Conversely, materials (+0.4%) lead the pack while the remaining gainers show upticks between 0.1% (technology) and 0.3% (telecom services).

In the consumer staples space (-0.4%), CVS Health (CVS 94.11, -3.06) underperforms following Mylan Labs' (MYL 42.97, -0.18) announcement that it will open a pathway for customers to buy the company's EpiPen device directly. The move is expected to lower the cost of the medical device by cutting out the need for pharmacy retailers and benefit managers. Separately, Costco (COST 165.07, -2.50) sports a loss of 1.5%, trading lower in sympathy with Dollar Tree (DLTR 86.05, -8.88) and Dollar General (DG 75.77, -16.02).

The U.S. Dollar Index (94.76, -0.3, -0.02%) trades near its session high as the greenback gains ground against commodity currencies, the yen, and the pound. The dollar/Canadian dollar pair trades higher by 0.1% (1.2930) while the pound has lost 0.5% against the buck (1.3173).

2:30 pm:

[BRIEFING.COM] The major averages are little changed since our last update as the Dow Jones Industrial Average (-0.3%) trails the S&P 500 (-0.2%).

The Dow Jones Transportation Index (-0.6%) displays relative weakness as rail names and couriers weigh on the group. CSX (CSX 28.09, -0.38) and FedEx (FDX 165.59, -2.63) trade lower by 1.4% and 1.6%, respectively. FedEx has gained 2.3% so far in August while the broader Transportation Index has ticked higher by 0.4% over that time.

In the industrial sector (-0.1%), Lockheed Martin (LMT 248.95, +0.83) trades higher by 0.3%, narrowing its week-to-date loss to 2.0%. This compares to a decline of 0.3% in the Industrial Sector SPDR ETF (XLI 58.82, -0.02) over that time. Conversely, L-3 Communications (LLL 148.73, +1.95) has jumped 1.3% after being upgraded to "Outperform" from "Neutral" at JP Morgan.

Treasuries float near session lows as yields rise throughout the complex. The yield on the 10-yr note is higher by one basis point (1.57%) while the yield on the 30-yr bond has risen two basis points (2.27%).

2:00 pm:

[BRIEFING.COM] The major averages have moved lower in recent action, placing the S&P 500 (-0.1%) two points above its session low.

The commodity-sensitive energy space (-0.5%) has slid down the leaderboard as a downturn in crude oil weighs on the sector. The energy component has slipped from the $47.00/bbl price level following reports that the Saudi Energy Minister stated there have been no meaningful talks on a production freeze agreement. The next OPEC meeting is scheduled to take place in Algeria on September 26-28. WTI crude remains higher by 0.2% ($46.86/bbl; +$0.09).

In the energy sector (-0.6%), Dow component Exxon Mobil (XOM 87.31, -0.70) underperforms, falling 0.8%. The stock sports a week-to-date loss of 0.6%, which compares to a decline of 1.3% in the broader energy sector. On the flipside oilfield service names outperform with Halliburton (HAL 44.37, +0.02) and Baker Hughes (BHI 51.35, +0.11) gaining 0.1% and 0.2%, respectively.

On the commodities front, gold ended its day lower by 0.4% ($1,325.50/ozt; -$5.40).

1:30 pm:

[BRIEFING.COM] The major U.S. indices trade mixed at this time as the S&P 500 trades flat, while the Dow Jones Industrial Average lags. 

A look inside the Dow shows that Nike (NKE 59.17, -1.05), Wal-Mart (WMT 71.16, -1.07), & UnitedHealth Group (UNH 137.99, -1.88) are underperforming. Nike and Wal-Mart are the Dow's biggest decliners as consumer-related names drag in today's session.

Conversely, Cisco (CSCO 31.33, +0.27) is the best-performing Dow component as tech names trade ahead of the broad market. 

For the week, the DJIA is currently -0.45%, but still up 0.22% this month. 

Elsewhere, at the top of the hour, the Treasury's $28 bln 7-year auction drew a high yield of 1.423% on a bid-to-cover of 2.38.

1:10 pm:

[BRIEFING.COM] The stock market trades on a flat note at midday as investors continue to favor a cautious approach ahead of tomorrow's remarks from Federal Reserve Chair Janet Yellen. Other focal points impacting today's trade have included a reversal in crude oil and strong sector leadership from the heavily-weighted technology (+0.3%) and financial (+0.3%) sectors. At midday, the Nasdaq Composite (+0.2%) leads the S&P 500 (+0.1%) and the Dow Jones Industrial Average (UNCH).

The major averages began the day on a lower note as a downturn in global markets and some weaker-than-expected earnings results kept a lid on equities. European markets paced the retreat overnight as a lackluster reading of Germany's IFO Business Climate survey for August pressured regional bourses. On the home front, disappointing quarterly reports from the likes of Dollar Tree (DLTR 86.25, -8.67), Dollar General (DG 78.24, -13.55), and Signet Jewelers (SIG 83.59, -11.91) helped limit early buying interest in retail sub-group and the broader market.

Equity indices staged a reversal in the opening half hour as heavily-weighted health care (UNCH), financials (+0.3%), and technology (+0.3%) trimmed their opening losses. The reversal took place alongside a similar move in crude oil futures, which has WTI crude trading higher by 0.8% ($47.12/bbl; +$0.35), rebounding from yesterday's 2.9% decline.

The broader market has struggled to maintain traction above its flat line amid light volume and ahead of potentially market-moving remarks from Ms. Yellen.

The S&P 500 (+0.1%) hovers just above its flat line, maintaining technical support near the 2175 price level. Six sectors trade in the green with materials (+0.3%) and telecom services (+0.5%) outperforming while energy (-0.1%), consumer discretionary (-0.2%), and consumer staples (-0.2%) lag.

The PHLX Semiconductor Index (+0.7%) displays relative strength as component Micron (MU 16.42, +0.91) outperforms. The chipmaker has rallied 6.0% after Nomura raised its price target on the stock to $20 from $16. In the broader technology sector (+0.3%), Salesforce.com (CRM 79.80, +1.98) has gained 2.5% amid takeover rumors. Conversely, top-weighted Apple (AAPL 107.54, -0.49) underperforms, trimming its August advance to 2.4%. 

The economically-sensitive financial sector (+0.3%) demonstrates relative strength as rate-sensitive real estate investment trusts outperform alongside defensively-oriented utilities (+0.2%) and telecom services (+0.4%). The path and speed of interest rate normalization remains in focus as participants look ahead to tomorrow's 10:00 ET remarks from Fed Chair Yellen.

In the health care sector (UNCH), biotechnology outperforms as Mylan Labs (MYL 44.66, +0.51) rebounds from yesterday's 5.4% decline. The company was under pressure after presidential candidate Hillary Clinton called on the company to lower the price of its EpiPen device. Mylan has since announced initiatives to reduce patient costs associated with that device. On the flipside, St. Jude Medical (STJ 76.29, -5.59) has fallen 6.8% after Muddy Waters Capital disclosed a short position in the stock. The firm cited potential cyber security vulnerabilities for its bearish view on St. Jude.

Treasuries trade on a lower note with yields rising across the curve. The yield on the 10-yr note has risen one basis point to 1.57%. 

Today's economic data included weekly initial claims and Durable Goods Orders for July: 

  • Initial jobless claims for the week ending August 20 slipped to 261,000 (Briefing.com consensus 265,000) from the prior week's unrevised reading of 262,000.
    • Continuing claims for the week ending August 13 were 2.145 million, down 30,000 from the prior week's unrevised reading.
  • Continuing claims for the week ending August 13 were 2.145 million, down 30,000 from the prior week's unrevised reading.
  • Durable goods orders increased 4.4% in July (Briefing.com consensus +3.5%) on the back of a 10.5% increase in transportation equipment orders, which was fueled by an 89.9% increase in nondefense aircraft and parts orders.
    • Orders for the manufacturing sector have picked up again after declining in both May and June.
    • Excluding transportation, orders were up 1.5% (Briefing.com consensus +0.4%), paced by gains in nearly all categories.
  • Orders for the manufacturing sector have picked up again after declining in both May and June.
  • Excluding transportation, orders were up 1.5% (Briefing.com consensus +0.4%), paced by gains in nearly all categories.

For further details on these economic releases, be sure to visit Briefing.com's Economic Calendar page.

12:30 pm:

[BRIEFING.COM] The S&P 500 (UNCH) has ticked lower in recent action, testing technical support near the 2175 price level. Elsewhere, mid-cap and small-cap indices outperform with the S&P Mid Cap 400 and the Russell 2000 gaining 0.3% apiece.

The consumer discretionary space (-0.3%) rounds out the leaderboard as bargain retailers continue to weigh on the sector. Dollar Tree (DLTR 86.70, -8.23) and Dollar General (DG 78.54, -13.25) have tumbled a respective 8.6% and 14.4% after disappointing results. The broader SPDR S&P Retail ETF (XRT 45.40, -0.22) trades lower by 0.5%, extending its week-to-date loss to 0.7%. Conversely, influential Netflix (NFLX 97.96, +2.78) trades higher by 2.9% after being upgraded to "Outperform" from "Market Perform" at William Blair. The stock has gained 7.4% this month, which compares to a loss of 0.5% in the broader sector.

Treasuries trade on a flat note, mirroring today's quiet action in equity markets. The yield on the 2-yr note is unchanged at 0.77% while the yield on the 30-yr bond sits at 2.25% (UNCH).

12:05 pm:

[BRIEFING.COM] The major indices have inched lower as the Nasdaq Composite (+0.1%) trades in-line with the S&P 500 (+0.1%).

The economically-sensitive financial sector (+0.3%) demonstrates relative strength as rate-sensitive real estate investment trusts outperform alongside defensively-oriented telecom services (+0.2%) and utilities (+0.3%). The broader sector has gained 0.3% week to date, which leads the remaining groups.

The future path of interest rate normalization remains in question as investors await Friday's speech from Federal Reserve Chair Janet Yellen. The Fed Chair is slated to address global central bank officials tomorrow at 10:00 ET. Participants have largely shrugged off recent comments from Fed speakers, looking ahead to tomorrow's event. On that note, Kansas City Fed President, and FOMC voter, Esther George stated yesterday evening that the time appears right for a rate hike. Separately, Dallas Fed President (not an FOMC voter) Robert Kaplan said that the case for removing accommodations is strengthening. Mr. Kaplan also said he believes yield chasing and worries surrounding the state of China's economy are fueling the continued increase in bond prices.

11:30 am:

[BRIEFING.COM] The major averages float near recently-established session highs as the Nasdaq Composite (+0.2%) leads the S&P 500 (+0.1%) and the Dow Jones Industrial Average (+0.1%).

The countercyclical health care sector (+0.1%) has inched higher as biotechnology extends its recent rebound effort. Mylan Labs (MYL 44.37, +1.22) has rebounded 2.8% after sinking 5.4% in the prior session. The company was under pressure after presidential candidate Hillary Clinton called on the company to lower the price of its EpiPen device. The company has since announced initiatives to reduce patient costs associated with EpiPens. For the week, Mylan Labs sports a loss of 8.8%, which compares to a loss of 1.3% in the broader sector.

In the medical equipment sub-group, St. Jude Medical (STJ 78.10, -3.76) has slipped 4.5% after Muddy Waters Capital disclosed a short position in the stock. The firm based its position on the potential recall of several of the company's products due to cyber security vulnerabilities. Abbott Labs (ABT 43.15, -0.04) has ticked lower in sympathy with the name. The heavyweight signed a deal to acquire St. Jude Medical for approximately $85 per share on April 28.

11:00 am:

[BRIEFING.COM] The major averages remain in the neighborhood of their flat lines.

The influential technology sector (-0.1%) trades modestly lower as top-weighted Apple (AAPL 106.91, -1.105) underperforms. The stock has slipped 1.0%, trimming its August advance to 2.6%. This compares to a gain of 1.5% in the benchmark index. HP (HPQ 14.06, -0.34) has narrowed its post-earnings loss to 2.4%. The stock fell 5.9% at the start of the session as disappointing guidance overshadowed top- and bottom-line beats. The broader sector has lost 0.3% this week, leading only energy (-0.5%; week-to-date: -1.2%) and health care (+0.1%; week-to-date: -1.3%)on the weekly leaderboard.

The PHLX Semiconductor Index (+0.4%) trades ahead of the technology space as Micron (MU 16.33, +0.82) leads the price-weighted index. The stock has rallied 5.3% after having its price target increased to $20 from $16 at Nomura.

On the commodities front, WTI crude trades higher by 0.3% ($46.90/bbl; +$0.19) while gold has slipped 0.4% to $1,324.90/ozt.

10:30 am: [BRIEFING.COM]

  • Commodities, as measured by the Bloomberg Commodity Index, -0.1% around the 85.02 level
  • Crude oil saw a modest recovery from yesterday's post-EIA drop, rallied as high as 1% initially
    • October crude oil futures were up $0.16 (+0.3%) around the $46.93/barrel level
    • The next OPEC meeting will take place in Algeria from Sept 26-28
    • Rig count data will be released tomorrow at 1 pm ET
  • October crude oil futures were up $0.16 (+0.3%) around the $46.93/barrel level
  • The next OPEC meeting will take place in Algeria from Sept 26-28
  • Rig count data will be released tomorrow at 1 pm ET
  • Natural gas traded lower following the release of inventory data for the week ending Aug 19
    • September natural gas futures were still up on the day, $0.01 (+0.3%) around the $2.81/MMBtu level
    • Before the data, natural gas futures were trading at $2.84/MMBtu
    • EIA highlights:
      • Working gas in storage was 3,350 Bcf as of Friday, Aug 19, 2016, according to EIA estimates.
      • Natural gas inventory showed a build of +11 bcf vs expectations for inventory to be a build of approximately +18 bcf.
      • Stocks were 275 Bcf higher than last year at this time and 350 Bcf above the five-year average of 3,000 Bcf.
      • At 3,350 Bcf, total working gas is above the five-year historical range.
  • September natural gas futures were still up on the day, $0.01 (+0.3%) around the $2.81/MMBtu level
  • Before the data, natural gas futures were trading at $2.84/MMBtu
  • EIA highlights:
    • Working gas in storage was 3,350 Bcf as of Friday, Aug 19, 2016, according to EIA estimates.
    • Natural gas inventory showed a build of +11 bcf vs expectations for inventory to be a build of approximately +18 bcf.
    • Stocks were 275 Bcf higher than last year at this time and 350 Bcf above the five-year average of 3,000 Bcf.
    • At 3,350 Bcf, total working gas is above the five-year historical range.
  • Working gas in storage was 3,350 Bcf as of Friday, Aug 19, 2016, according to EIA estimates.
  • Natural gas inventory showed a build of +11 bcf vs expectations for inventory to be a build of approximately +18 bcf.
  • Stocks were 275 Bcf higher than last year at this time and 350 Bcf above the five-year average of 3,000 Bcf.
  • At 3,350 Bcf, total working gas is above the five-year historical range.
  • In precious metals, gold & silver drifted to session lows & extended yesterday's decline despite dollar weakness
    • December gold futures were down $5.50 (-0.4%) around the $1324.20/oz level
    • September silver futures were down $0.06 (-0.3%) around the $18.50/level
  • December gold futures were down $5.50 (-0.4%) around the $1324.20/oz level
  • September silver futures were down $0.06 (-0.3%) around the $18.50/level

10:00 am:

[BRIEFING.COM] The major averages float above their opening lows as the S&P 500 (-0.1%) trades neck-and-neck with the tech heavy Nasdaq (-0.1%).

The leaderboard remains little changed with energy (-0.2%), consumer discretionary (-0.2%), and health care (-0.3%) leading to the downside.

In the health care space (-0.3%), Express Scripts (ESRX 73.25, -3.09) underperforms, slipping 4.1%. The stock notched a new August low (73.06) earlier this morning. The biotechnology sub-group floats modestly above its flat line as the iShares Nasdaq Biotechnology ETF (IBB 286.63, +0.40) attempts to rebound from yesterday's 3.4% decline. The broader sector has lost 1.7% so far this week, trailing the remaining groups on the weekly leaderboard.

The U.S. Dollar Index (94.65, -0.14, -0.14%) hovers off an overnight low as the yen and the pound lose ground to the greenback. The dollar/yen pair trades higher by 0.1% (100.50) while sterling has declined 0.2% against the buck (1.3201). Conversely, the single currency has gained 0.3% against the dollar (1.1294). The euro/dollar pair rallied off the 1.1280 price level earlier this morning.

9:45 am:

[BRIEFING.COM] The stock market began the day on a lower note with the Nasdaq Composite (-0.2%) and the S&P 500 (-0.2%) trading slightly behind the Dow Jones Industrial Average (-0.1%).

Seven sectors trade in the red with consumer discretionary (-0.3%) and energy (-0.4%) demonstrating relative weakness. The remaining decliners show losses between 0.1% (telecom services) and 0.2% (technology). On the flipside, utilities (+0.1%), financials (+0.1%), and materials (+0.1%) trade in the green.

In the consumer discretionary space (-0.3%), retail names demonstrate relative weakness as Dollar Tree (DLTR 88.15, -6.78), Signet Jewelers (SIG 24.73, -10.77), and Dollar General (DG 81.12, -10.66) weigh on the sub-group. Each name disappointed investors with their quarterly results and/or guidance. The three show losses between 7.0% and 11.8%.

The influential technology sector (-0.2%) trades in-line with the broader market as HP (HPQ 13.68, -0.72) underperforms. The company beat estimates for the quarter, but offered disappointing fourth-quarter guidance.

On the commodities front, WTI crude trades lower by 0.4% ($46.59/bbl; -$0.18) while gold has slipped 0.5% to $1,323.40/ozt.

9:13 am: [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -8.10.

The stock market is on track for a flat open as the S&P 500 futures trade three points below fair value.

Equity futures on the benchmark index maintained a narrow seven-point trading range overnight as participants eyed a negative bias in global markets. European bourses lead to the downside, responding to a below-consensus reading of the German Ifo Business Climate survey for August, which fell to 106.2 from 108.3 in July. The cautious posture can also be attributed to apprehension ahead of tomorrow's remarks from Federal Reserve Chair Janet Yellen.

The Fed Chair will address other central bank officials at the Jackson Hole symposium on Friday at 10:00 ET. Participants will be looking for further clues as to whether or not at least one rate hike remains on the table before the end of the year. On that note, Kansas City Fed President, and FOMC voter, Esther George stated after yesterday's close that the time appears right for a rate hike. Ms. George remains one of the more hawkish members of the FOMC.

In company specific news, Dollar General (DG 84.00, -7.79) trades lower by 8.5% after missing top- and bottom-line estimates for the quarter. The retailer also lowered its full-year earnings estimates below consensus. Fellow discount retailer Dollar Tree (DLTR 89.00, -5.93) has slipped 6.3% after missing analysts' estimates for the quarter and disappointing investors with its full-year revenue guidance. Separately, Guess? (GES 17.30, +2.40) has rallied 16.1% after beating bottom-line estimates for the quarter and raising its full-year earnings outlook above consensus.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -7.60.

The S&P 500 futures trade three points below fair value. 

Equity markets across the Asia-Pacific region ended Thursday on a mostly lower note, but once again, trading ranges were relatively narrow. The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen, who will speak before other central bank officials in Jackson Hole, Wyoming.

  • In economic data:
    • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion

---Equity Markets---

  • Japan's Nikkei shed 0.3% with seven sectors ending in the red. Energy (-0.9%), consumer staples (-0.7%), and materials (-0.7%) lagged while financials (+0.3%) outperformed. Sumitomo Metal Mining, Shiseido, Mitsubishi Logistics, Shin-Etsu Chemical, Mitsubishi Electric, and Isuzu Motors lost between 1.8% and 4.9%.
  • Hong Kong's Hang Seng settled just above its flat line. China Mengniu Dairy surged 11.1% after reporting better than expected sales. Tingyi followed with a 2.6% gain while financials were mixed. HSBC, Hang Seng Bank, and Bank of China added between 0.3% and 0.5% while Bank of East Asia shed 0.4%.
  • China's Shanghai Composite trimmed its loss ahead of the close, but still lost 0.6%. Gemdale, Hundsun Technologies, Langfang Development, and AVIC Capital lost between 4.1% and 4.6%.

Major European indices trade lower across the board with Germany's DAX (-1.0%) leading the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5). The euro has climbed 0.3% against the dollar to 1.1294 while the pound has ticked down 0.3% to 1.3192.

  • In economic data:
    • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
    • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
    • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
    • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
  • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
  • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
  • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)

---Equity Markets---

  • Germany's DAX has given up 1.0% with exporters pacing the retreat. Volkswagen, Daimler, and BMW are down between 2.1% and 2.3%. Financials have also struggled with Deutsche Bank retreating 1.8% and Commerzbank falling 1.1%. Henkel is the top performer, rising 0.2%.
  • France's CAC is down 0.8% with all but two names in negative territory. ArcelorMittal and Valeo are both down near 2.7% while automakers Peugeot and Renault hold respective losses of 2.2% and 1.3%. Financials have kept pace with the broader market as BNP Paribas, Societe Generale, and Credit Agricole surrender between 0.9% and 1.0%.
  • UK's FTSE outperforms with a loss of 0.3%. Drugmakers Hikma Pharmaceuticals and Shire are both down near 4.0% while select consumer names like ITV, SKY, Imperial Brands, Unilever, and Diageo are up between 0.7% and 1.6%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: -5.60.

Equity futures trade little changed with the S&P 500 futures trading two points below fair value.

Just released, July durable goods orders increased 4.4% while the Briefing.com consensus expected an uptick of 3.5%. This comes after the prior month's revised decline of 4.2% (from -4.0%). Excluding transportation, durable orders rose 1.5% (Briefing.com consensus +0.4%) to follow the prior month's revised decline of 0.3% (from -0.5%).

Separately, the latest weekly initial jobless claims count totaled 261,000 while the Briefing.com consensus expected a reading of 265,000. Today's tally was below the unrevised prior week's count of 262,000. As for continuing claims, they fell to 2.145 million from 2.175 million.

8:05 am: [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -7.50.

U.S. equity futures trade on a modestly lower note with the S&P 500 futures floating two points below fair value. Index futures inched lower as investors eyed a negative bias in global bourses and favored a cautious approach ahead of commentary from Fed Chair Janet Yellen. Ms. Yellen will address other central bank officials at the Jackson Hole symposium tomorrow at 10:00 ET. 

Asia-Pacific markets slipped overnight as participants ruminated over commentary from the People's Bank of China. The central bank sparked minor liquidity concerns when they urged lenders in China to spread out loan tenors, which would help reduce risks to short-term lending. Across the pond, Germany's DAX (-0.8%) underperforms after the release of a disappointing German Ifo Business Climate survey for August. The reading came in at 106.2 (expected 108.5), slipping from July's 108.3.

Treasuries trade on a higher note with the back end of the curve enjoying a modest bid. The yield on the 30-yr bond is lower by one basis point at 2.24%.

On the economic front, data will include weekly initial claims (Briefing.com consensus 265k) and Durable Goods Orders for July (Briefing.com consensus 3.5%), which will each cross the wires at 8:30 ET.

In U.S. corporate news of note:

  • Tiffany & Co (TIF 72.00, +3.13): +4.5% after beating bottom-line estimates for the quarter and reaffirming FY17 earnings and sales guidance
  • Signet Jewelers (SIG 83.48, -12.02): -12.6% following the company missing top- and bottom-line estimates for the quarter and guiding Q3 EPS estimates below consensus
  • Mylan Labs (MYL 44.40, +1.25): +2.9% after announcing initiatives to make access to the company's EpiPen device easier
  • HP (HPQ 13.35, -1.05): -7.3% following the company topping analysts' estimates for the quarter, but guiding Q4 EPS estimates below consensus

Reviewing overnight developments: 

  • Asia-Pacific equity markets ended on a mostly lower note with China's Shanghai Composite (-0.6%) underperforming Japan's Nikkei (-0.3%) and Hong Kong's Hang Seng (UNCH). 
    • In economic data:
      • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
      • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
    • In news: 
      • The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.
      • Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.
  • In economic data:
    • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • In news: 
    • The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.
    • Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.
  • The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.
  • Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.
  • European indices trade lower across the board with Germany's DAX (-0.8%), France's CAC (-0.7%), and the U.K.'s FTSE (-0.2%). 
    • In economic data:
      • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
      • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
      • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
      • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
    • In news: 
      • Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).
      • The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.
  • In economic data:
    • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
    • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
    • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
    • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
  • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
  • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
  • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • In news: 
    • Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).
    • The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.
  • Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).
  • The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.

5:54 am: [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: -4.40.

5:54 am: [BRIEFING.COM] Nikkei...16556...-41.40...-0.30%.  Hang Seng...22827...+6.10...+0.00%.

5:54 am: [BRIEFING.COM] FTSE...6819.21...-16.60...-0.20%.  DAX...10555.74...-67.20...-0.60%.