U.S. indices closed in the red on Thursday pressured by shares in the Energy (-1.33%), Health Care Equipment & Services (-1.15%) and Media (-1.02%) sectors. Traders are still trying to manage risks regarding the global trade war and a whistleblower complaint against President Trump.
On the economic data front, final readings of U.S. 2Q annualized GDP was confirmed at +2.0% QoQ as expected and previously estimated. Jobless claims rose to 213K for the week ending September 21 (vs. 212K expected) from 210K in the prior week. Wholesale Inventories rose 0.4% MoM in August (vs. +0.1% expected).
On Friday, economists anticipate durable goods orders to fall 1.1% in August. Personal income is expected to rise 0.4% MoM in August and personal spending to grow 0.3%. Finally, University of Michigan Consumer Sentiment is expected to rise to 92.1 in September from 92.0 in August.
The S&P 500 (2977.62) trades below its 20d moving average (2,977.78 – positive slope) but above its 50d moving average (2,949.49 – flat slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs with the exception of the CHF and EUR on Thursday. On the economic data front, Jobless claims rose 3K reaching 213K for the week ending September 21st from the prior revised 210K reading. US Annualized GDP for 2Q third reading is in line with estimates and the prior reading of 2.0%. Preliminary US Wholesale Inventories rose 0.4% exceeding estimates of 0.1% for August compared to a revised 0.1% increase in July. On Friday economists anticipate US Personal Income to rise 0.4% for August compared to a 0.1% rise in July. US Durable Goods is expected to fall 1.1% for August compared to a 2.0% rise the prior month. US Personal Consumption Expenditures is expected to rise 0.3% for the month end August compared to a 0.6% increase in July. Finally University of Michigan Consumer Sentiment is expected to rise to 92.1 for September compared to 92 in August.
The Euro was bearish against all of its major pairs. In Europe, the German GFK Consumer Confidence Index unexpectedly bounced to 9.9 from a 2-year low at 9.7 (9.6 expected) for October.
The Australian dollar was bullish against most of its major pairs with the exception of the NZD, JPY and USD.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 19) was about flat to $56.53. The contract was below its 20D MA (@ $56.97) and above its 50D MA (@ $55.93).
Gold was about flat to $1505.4. The precious metal was below its 20D MA (@ $1511) and above its 50D MA (@ $1491).
Copper Future (DEC 19) on Comex was down 3.6c to 257.55c/lb. The contract was below its 20D MA (@ 261.2c) and below its 50D MA (@ 262.26c). In Europe, the London Metal Exchange reported its copper inventories decreased 4950 tons to 271875 tons.