Newscasts - US Morning Call: Wall Street heads for best week of the year

SLB Development

16/08/2024 12:47

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Source: 'Reuters - Business videos'

Description: U.S. stock futures held around flat Friday morning as nerves
calmed over a sharp slowdown in the world's largest economy. The S&P 500 and
the Nasdaq were headed for their best weeks since October, while the Dow was
on pace for its best weekly showing since December.
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Video Transcript:

Wall Street poised for its best week of the year, as recession fears Feds.
Hello and welcome to your US Morning Call. I'm Peter Devlin. America's
economic resilience passed the test this week, after a flurry of economic data
reassured investors. The latest readings from inflation at jobless claims and
retail sales have all but eliminated fears of a recession. But the week isn't
over yet, with housing starts and building permits to as consumer confidence
still due today. Data from the University of Michigan is expected to show a
rise in consumer sentiment this month. Central bankers from around the globe
gather in Jackson Hole next week for the Feds annual conference. Investors
will be watching Fed Chair Jerome Powell remarks, as he fine tunes his message
before September's policy meeting. Most market participants believe that the
Fed will begin cutting rates next month.


The current policy rate is at 55.25, which is pretty restrictive relative to
if inflation truly is towards a 2%. You've got some room to cut and to cut
more aggressively at the beginning to really keep the floor underneath this
economy and to make sure that those long and variable legs don't pressure the
employment market.


US stock index futures were at little changed on Friday, after the S&P 500 and
the NASDAQ logged six-session winning streaks. The indexes were headed for
their best week since October, while the Dow was on pace for its best weekly
showing since December. Remarks from Chicago Fed President Austin Goolsbee
this afternoon will be on watch. Meanwhile, in major corporate news, shares of
Applied Materials fell over 3% in pre-markets. The largest US semiconductor
equipment maker forecasted Q4 revenue above estimates, anticipating a surge in
AI fuel demands. But traders were disappointed, expecting a more robust
forecast. Pfizer and BioNTech said a late-stage trial of their experimental
MRNA vaccine failed to meet a main goal. The combination shots aimed to
pretend against influenza and COVID-19, but missed a hurdle in phase three.
Onto oilfield services giant SLB, it continues to operate in Russia, expanding
its operations in the absence of competitors. The FT reported the company has
been importing equipment into Russia and signing new contracts. Texas
Instruments said it's to receive as much as $1.6 billion worth of funding
under the CHIPS and Science Act. The money is set to support the construction
of three new domestic facilities, adding more than 2,000 jobs. And oil fell by
more than $1.00 at the end of a turbulent week. A string of dismal indicators
from China overshadowed Middle East risks. Gaza ceasefire negotiations are set
to continue today despite being boycotted by Hamas. That's your US Morning
Call