Markets Edge Higher, Trade Hope Lifts Sentiment, U.S. Consumer Inflation Runs Hot

The U.S Futures Are Moving Higher

The U.S. futures are moving higher in early Thursday trading but the gains are limited. The Dow Jones Industrials are in the lead with a gain near 0.25%. The S&P 500 and NASDAQ Composite are close behind with advances of 0.20% and 0.15%. The positive vibe is driven by yesterday’s comments from Donald Trump. Trump says a trade deal with China could come sooner than we think. In truth, the deal could come sooner than we think, traders are cautioned not to be too optimistic. The deal could come much later than we think.

Shares of global industrial giants Caterpillar and Boeing are both up slightly in early trading because of trade hopes. In other news, shares of Beyond Meat are up nearly 20% after McDonald’s announced a successful test of the product. Carnival Corporation is expected to report earnings this morning, Vail Resorts will report later today.

In economic news, the 3rd and final revision of U.S. 2nd quarter GDP came in unchanged as expected. What was not expected was an upward revision to core consumer prices, up 0.2% to 1.9%. Today’s labor data shows unemployment claims continue to run cool. Claims advanced 3,000 over the last week to hit 213,000.

European Markets Move Higher, Trade Hopes Rise

The European markets moved broadly higher on Thursday on improving trade hopes. The UK FTSE 100 is in the lead at midday with a gain of 1.12%. The French CAC is in second place with an advance of 0.80% while the DAX trails at 0.54%. In the UK, PM Boris Johnson is standing firm. Johnson has challenged the main opposition party leader to hold a vote-of-no-confidence, a move that would force a snap-election if passed.

In Germany, the sentiment was bolstered by some good news on the consumer. The German consumer sentiment rose for the first time this year showing some resilience within the domestic economy. In stock news, shares of Pearson fell -16% after issuing a profit warning. Shares of Imperial Brands are also down hard, -9.0% after it issued a profit warning.

Asian Markets Mixed, Shenzen Fall -2.0%

Markets in Asia are firmly mixed at the end of the day on Thursday. The big loser is mainland Chinese small-caps, the Shenzen fell -2.0%. The Shanghai Composite is also down hard, about -1.0%, while other losers in the region fell a more tepid -0.50%. Stocks in Japan rose about 0.15% on word Japan and the U.S. had an initial agreement on trade. Shares of Fanuc led the advance gaining about 2.5%. Autos also moved higher and gained an average of 1.5%.