There isn’t a strong signaling mechanism from the equity futures market this morning, but the signaling there is implies some continued softness.
Currently, the S&P 500 futures are down four points and are trading 0.1% below fair value, the Nasdaq 100 futures are down seven points and are trading fractionally below fair value, and the Dow Jones Industrial Average futures are down 22 points and are roughly in-line with fair value.
There hasn’t been a lot of news flow to excite the trading masses. Instead, there has been a collection of individual items causing some stock-specific/industry-specific moves.
To provide an example of the relative dearth of market-moving news flow items, some ample attention has been paid this morning to the news that the cage match between Mark Zuckerberg and Elon Musk appears to be off.
Now, with that “important” news item out of the way, some other stories of interest include the following:
- U.S. Steel (X) receiving a proposal to be acquired by Cleveland-Cliffs (CLF) for total consideration of $35.00 per share; U.S. Steel said it will explore strategic alternatives to maximize shareholder value after receiving multiple unsolicited proposals
- Tesla (TSLA) is cutting prices in China, according to Bloomberg
- There was a suspension in bond trading for Chinese property developer Country Garden; and trading in Sino Ocean’s one-year notes was also suspended
- Morgan Stanley named NVIDIA (NVDA) a Top Pick ahead of its earnings report, according to CNBC
There isn’t any U.S. economic data of note today, yet that will change tomorrow with the release of the July Retail Sales Report. On a related note, the earnings calendar this week will feature reports from Dow components Home Depot (HD) and Walmart (WMT), and other retailers, including Target (TGT) and TJX Cos. (TJX).
There has been some added activity in the Treasury market, accented with a slant of selling. The 2-yr note yield is up five basis points to 4.94% and the 10-yr note yield is up one basis point to 4.18%.
By and large, the stock market remains stuck in a consolidation mode that is running parallel with a market that seems more attentive to vacation mode.
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Originally Posted August 14, 2023 – Stuck in consolidation (and vacation) mode
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