EmailJust two days until Bernanke's speech on Friday. Yesterday was another slow, quiet session and today looks set to be the same. S&P futures suggest a near flat open.
The Chinese stock market dropped 1%, continuing a recent slide that has largely been ignored by US stock market participants. The Shanghai index is down 20.3% for the past year and has slid over 15% since early May.
European stock exchanges are down about 0.2% overall. The Spanish index is down 0.6% and the Spanish 10-year note yield is up to 6.52% from 6.48% at the close yesterday.
US second quarter real GDP was revised slightly higher to a 1.7% annual rate of increase from the originally reported 1.5%. The third quarter will be similarly sluggish. Pending home sales data are due at 10:00 ET. The Fed will release the Beige Book report on regional economic conditions at 2:00 ET.
Heinz stock price is lower despite reporting earnings of $0.87 per share compared to forecasts of $0.80 and a year-ago level of $0.78. The reason is not surprising: revenues were expected to be flat but were down 1.4% from a year ago. Large US corporations are struggling mightily with weak revenue trends. Given the accelerating global economic slowdown, it is hard to see how revenue gains will pick up in the fourth quarter or in 2013 - even with further quantitative easing.
Hurricane Isaac has pushed oil and gas prices slightly higher but the market impact should be temporary.
The array of slightly negative news this morning is considered irrelevant given the perceived overwhelming importance of whatever Bernanke says on Friday.
Founder and Chairman, Briefing.com
