Positive Economic Data, Powell Safe, Markets Stable
S&P 500 and Nasdaq 100 futures edged up 0.1% and 0.2%, respectively, on Thursday morning (July 17), while the Dow Jones Industrial Average remained flat. What caused this? Investors were digesting a series of new economic data from the US, which suggested the economy remains quite strong. This increase reflects market caution in responding to mixed sentiment, from economic strength to major corporate earnings reports.
Released data showed that US retail sales rose 0.6% in June, well above market expectations of 0.1%. Meanwhile, jobless claims fell to 221,000, indicating a still-solid labor market. Import prices rose only 0.1%, lower than the 0.3% forecast, raising hopes that inflationary pressures from abroad remain contained.
Meanwhile, market concerns about political issues eased after President Donald Trump denied rumors that he planned to fire Fed Chairman Jerome Powell. This statement eased tensions that had previously rocked global financial markets. Speculation about Powell's future sparked volatility, as it was perceived to affect the independence of US monetary policy.
In terms of corporate performance, PepsiCo shares jumped 3.7% in the pre-opening session after posting quarterly profits and revenue that exceeded analyst expectations. United Airlines shares edged up 0.5% despite disappointing annual profit projections. Meanwhile, investor attention is also focused on Netflix, which will release its financial results after the market closes today.
Source: (ayu-newsmaker)
