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Stocks Poised to Extend Losses

Posted August 18, 2023 at 9:30 am
Briefing.com

The S&P 500 futures are down 22 points and are trading 0.5% below fair value. The Nasdaq 100 futures are down 118 points and are trading 0.8% below fair value. The Dow Jones Industrial Average futures are down 144 points and are trading 0.4% below fair value.

Stock futures indicate a lower open despite pleasing earnings and guidance from Applied Materials (AMAT) and Deere (DE) and a drop in market rates. The negative bias stems from concerns about China, as well as the disappointing price action seen so far this month.

China’s Evergrande Group filed for Chapter 15 bankruptcy in a New York court, seeking to restructure more than $19 billion in offshore debt. In related news, the People’s Bank of China reportedly instructed state banks to intensify their interventions in the foreign exchange market to support the yuan.

There was some safe haven trading action in the Treasury market overnight. The 2-yr note yield is down five basis points to 4.91% and the 10-yr note yield is down nine basis points to 4.22%. The U.S. Dollar Index is down 0.1% to 103.53.

WTI crude oil futures are down 0.9% to $79.15/bbl; natural gas futures are down 2.9% to $2.55/mmbtu; and copper futures are up 0.1% to $3.69/lb.

Originally Posted August 18, 2023 – Stocks poised to extend losses

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