Chinese Data Drags U.S. Stock Futures

U.S. retail sales for July beat estimates, however

Deputy Editor
Aug 15, 2023 at 9:22 AM
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Stock futures are substantially lower Tuesday, as investors wrestle with disappointing data out of the world's second-largest economy. Specifically, China's industrial production missed expectations, and the country's central bank issued a surprise interest rate cut. In other news, stateside retail sales increased 0.7% last month, besting economists' estimates of a 0.4% rise.

At last glance, futures tied to the Dow Jones Industrial Average (DJI) are 270 points lower, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures also sit well below fair market value.

Continue reading for more on today's market, including: 

  • Schaeffer's Senior V.P. of Research Todd Salamone thinks bears are in trouble.
  • Options bulls: watch these pullbacks in tech
  • Plus, AI darling shines; Warren Buffet's newest stake; and PSX's bear note.

Futures Chart August 152023

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call and 1 million put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.70 and the 21-day moving average stayed at 0.65.
  2. Nvidia Corp (NASDAQ:NVDA) is an investor favorite this year, amid rising interest in artificial intelligence (AI) adjacent names. The shares sport a nearly 200% year-to-date lead, and are 1.3% higher premarket after at least three major brokerage firms raised their price targets.
  3. Already up 54.6% over the last 12 months, DR Horton Inc (NYSE:DHI) is 1.8% higher before the bell following a securities filing. The filing revealed that Berkshire Hathaway (BRK), Warren Buffet's firm, added a more than $720 million stake in the homebuilder.
  4. Phillips 66 (NYSE:PSX) is down 2.2% before the open after Bank of America downgraded the Texas-based energy firm. Citing a lower risk-reward skew, the analyst note puts PSX at risk of falling below its year-to-date breakeven mark.
  5. Today brings business inventories, the import and export price indexes, and the Empire state manufacturing index.  

Buzz 0815

More on China's Disappointing Data

Disappointing economic data out of China is drawing investor attention worldwide, as well as news that the People’s Bank of China unexpectedly cut its short-term interest rates by 10 basis points. China’s industrial production missed expectations with a 3.7% rise year-over-year, while retail sales grew 2.5%, which is below the 4.5% anticipated by analysts. Elsewhere, Japan’s gross domestic product (GDP) grew a much higher-than-expected 6% in the three months ending in June. Japan’s Nikkei finished 0.6% higher in response, while Hong Kong’s Hang Seng fell 1%, and China’s Shanghai Composite lost 0.07%. The South Korean Kospi was closed for holiday.

In Europe, the U.K.’s record wage growth is taking the spotlight, as monthly salaries increased 7.8% in July – the largest annual growth rate since records began in 2001. However, the bourses are lower midday. London’s FTSE 100 is down 1.3% at last glance, while the French CAC 40 drops 1.2%, and the German DAX sheds 1%.


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