US : 5 things to know before the open – 04 Aug 2016
Here are the five things you need to know before the opening bell rings in New York:
1. Great expectations in Great Britain: The Bank of England is widely expected to cut interest rates Thursday in a bid to support the slowing economy.The U.K. voted to leave the European Union in June, triggering a slump in the pound and a collapse in business and consumer confidence. Surveys suggest the British economy is already contracting.
Now economists expect the central bank to swoop in with a rate cut, and possibly other stimulus measures such as printing more money to buy government bonds.
U.K. stock markets were flat in the lead up to the rate decision, which is expected at 7 a.m. ET. The pound was trading around $ 1.33, down slightly from Wednesday and 11% lower than just before the Brexit vote.
2. Elevated levels of earnings: A huge number of companies are reporting earnings ahead of the U.S. open this morning, including Viacom (), Time Inc. ( ), Toyota ( ), Nokia ( ), Kellogg ( ), MGM Resorts ( ) and Burger King owner Restaurant Brands International ( ).
After the close, investors will hear from Kraft Heinz (), Priceline ( , Tech30), LinkedIn ( , Tech30), Paramount Group ( ) and Lions Gate Entertainment ( ).
LinkedIn’s results come shortly after Microsoft (, Tech30) announced it is buying the company for $ 26 billion. LinkedIn stock plummeted at the beginning of this year on weak earnings but surged to a record high on the Microsoft news.
3. Potential market movers — TripAdvisor, Tesla: Shares in TripAdvisor () look set to plunge at the open after posting lower-than-expected profits in its latest earnings report.
Shares in Tesla () could also be on the move after the electric car company reported that its losses ballooned to $ 150 million in the quarter ending in June, which is more than twice what Wall Street had expected.
Shares in 21st Century Fox () and Metlife ( ) could also dip in the wake of their latest quarterly results, posted on Wednesday evening.
And in Germany, shares in Siemens () are rising by about 3% while shares in Adidas ( ) are declining by 3% after both firms reported earnings in the morning.
4. Global stock market overview: U.S. stock futures are holding steady and not making any major moves right now. European markets are mostly positive in early trading, though the gains are small.
Markets across Asia and most of the Middle East are up a tad.
5. Wednesday market recap: The Dow Jones industrial average rose 0.2% on Wednesday, breaking a 7-day losing streak. The S&P 500 gained 0.3% and the Nasdaq grew by 0.4%.
Rules of Discussion on Live Index
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.