U.S. Equities are Mixed Lead HIgher by Tech.
This article is originally referred from iForex Blog.
Mixed signals from U.S with disappointing data of “U.S. economic growth data” with the “U.S. central bank” commenting “near-term risks to the economic outlook have diminished”.
Along with them, Canadian economy’s growth data also showed the same kind of disappointment.
Check out the iForex’s market report focusing on U.S growth data and its numbers.
U.S. Equities are Mixed Lead Higher by Tech
U.S. equities were mixed in the wake of the tepid Q2 GDP print that underwhelmed high hopes of a decent rebound from Q1 GDP, which was in turn revised lower to boot. This followed on the heels of volatility surrounding the BoJ disappointment and further policy hints, which also saw crude oil probe 40 per barrel. A beat by Alphabet saw its shares rally 3.5%, however, keeping a bid in the tech sector.
Between the weak data and stronger yen, the dollar index sank 0.6% to dip back under 96.0, providing some relief to multinationals. Meanwhile, Exxon -2.4% missed earnings expectations as profits sank 60% with the glut spread from crude oil to gasoline and Chevron fell as well.
U.S. Consumer Sentiment Fell in Final Reading
U.S. consumer sentiment fell to 90.0 in the final read from the University of Michigan survey, down from June’s 93.5, but a tad better than the 89.5 for the preliminary July headline. Most of the weakness was in the expectations component which declined to 77.8 from last month’s 82.4. The current conditions index slipped to 109.0 from June’s 110.. The 12-month inflation index ticked up to 2.7% from 2.6%, with the 5-year rate at 2.6%, as it was in June.
The firm 0.6% U.S. Q2 ECI gain matched the increases in two of the three prior quarters, and it sharply beat the record-low 0.2% ECI rise in Q2 of last year to prompt a bounce in the year over year ECI gain to 2.3% from 1.9% in Q1. With passage of last year’s oddly-weak Q2 figures out of the year over year calculations, we now have a resumption of the cyclical labor cost growth uptrend from the late-2009 recession-low.
For the wages and salary component, we saw a firm 0.6% Q2 rise that matched the 0.6% Q2 increase in average hourly earnings from the last jobs report and that left a year over year bounce to 2.5% from 2.0%, while 0.5% Q2 benefit cost rise allowed a sharp bounce in the year over year gain to 2.0% from 1.7% in Q1.
Original Source: iForex Blog