Domestic stock index futures were trading notably higher this morning.
A Fed rate hike continues to look like a done deal, with Atlanta Fed President Dennis Lockhart going on record saying that the domestic economy would have to fall off hard for him to not vote for a rate hike in September. Lockhart generally reflects the mainstream thinking on the Federal Open Market Committee.
But as ADP reported this morning that 185,000 workers were added to payrolls in July, below consensus of 215,000, futures jumped higher. Investors hope the modest growth may allow the Fed some more wiggle room to put off a rate hike. Friday's nonfarm payrolls data will be crucial.
And as if nothing had happened before, Greece is optimistic that it will reach an agreement with its lenders in the short-term.
Baxalta (BXLT) officially rejected Shire's (SHPG) hostile offer of $30 billion saying the offer was not nearly enough.
Some earnings reports of note today include: Voya Financial (VOYA), Cognizant Technology (CTSH), Dish Network (DISH), Quanta Services (PWR), Wendy's (WEN), Lumber Liquidators (LL), Priceline (PCLN), Time Warner (TWX), Kate Spade (KATE), SodaStream (SODA), Rowan (RDC), Liberty Media (LMCA), Ralph Lauren (RL), Keurig Green Mountain (GMCR), Twenty-First Century Fox (FOXA), Weight Watchers (WTW), MercadoLibre (MELI), Jack in the Box (JACK), Tesla (TSLA), Herbalife (HLF), Transocean (RIG), and Fitbit (FIT).
The trade deficit widened in June to $43.8 billion, the highest in three months as the strong dollar more led to more demand for imports. Consensus called for $43 billion.
The July Markit US Composite PMI will be released at 9:45 a.m., the July ISM Non-Manufacturing Composite will come out at 10a.m. with consensus at 56.2, and the DOE Energy Inventories report at 10:30 a.m.
Happy trading!
Bryan Ashenberg is the portfolio manager for Growth Seeker and the fundamental analyst for Trifecta Stocks. Test drive with a free trial.
