Stock market news for today August 9, 2021 | national
Stock futures fall after the Dow Jones close on record Friday
US stocks fell Monday morning after major stock indexes hit a record high last week, following a stronger-than-expected employment report. Over the weekend, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) reported better than expected second quarter earnings growth. Profit season is still quite active this week. There will be some economic data to look forward to at the start of the week. To begin with, there will be news reports on consumer and producer price inflation data.
“You have seen many more jobs being created in the areas that are reopening – restaurants, hotels, logistics, transport,“said Larry Adam, chief investment officer for Raymond James.”It’s a good sign. I think it gives more purchasing power to the consumer in the future and I think that’s ultimately a good thing for the economy.“
In addition, US senators voted Sunday night to work towards the passage of a $ 1 trillion infrastructure bill. Recall that the bill is a key element of President Joe Biden’s main agenda. The final Senate vote on the bill will likely take place on Tuesday. Certainly, Republicans and Democrats had their disagreements. But they moved forward with procedural votes on a bipartisan basis. If the infrastructure bill passed, it would provide a massive injection of federal money into the economy. And that should bode well for the stock market. Dow and S&P 500 futures are trading in negative territory, falling 0.31% and 0.19% respectively at 6:50 am ET. Meanwhile, futures on the Nasdaq rise 0.09%.
Focus on AMC Entertainment Profits
One of the most popular memes stocks, AMC Entertainment (NYSE: AMC) is expected to announce its second quarter after market close today. Investors will be able to see how the economic reopenings affected the finances of the theater chain today. But before getting into the thick of it, it’s also worth considering how the company fared before the pandemic. It goes without saying that the pandemic has devastated the company.
Since its last quarter, the company’s cash consumption rate has been around $ 120 million per month. Of course, the company could find ways to cut costs and raise capital to survive the pandemic. The point is, you can’t just rely on cutting costs to keep the business afloat. Sooner or later, AMC will have to increase its income to improve its cash flow. The good news is that there have been a few blockbuster movies on the big screen in the past quarter.
Many may be curious as to whether we could potentially see a light at the end of the tunnel for the theater industry. But that’s not the end of AMC’s trouble. The movie theater chain entered the second quarter with $ 5.4 billion in debt on its balance sheet. No one can say for sure what the financial report would look like this afternoon. But we are likely to hear about operating losses and financial difficulties. Basically, investors may want to be cautious about this stock. But you never know what’s going to happen with Reddit traders in-game too. With that in mind, will you be looking at AMC stocks to see how they fare after the report?
Gold flash crash eases after robust jobs data points to anticipated Fed cut
Gold slipped Monday morning. It came after US jobs data raised concerns that the Federal Reserve would raise interest rates sooner than expected. The US Department of Labor reported that the non-farm workforce rose by 943,000 in July, handily beating the consensus estimate of 870,000. At the same time, the unemployment rate fell to 5.4%.
Data on jobs “exceeded expectations by a mile last week which led to gold and silver selling to close. This morning we see the excess of that because maybe these traders a little late to the party are selling short,Said John Feeney, director of business development at Guardian Vaults. “With low liquidity at this time of the week combined with a large number of triggered stop losses, we saw a volatile open to start the week.“
Dallas Fed Chairman Robert Kaplan said the central bank should start cutting back on asset purchases as soon as possible. Since Friday morning, gold has recorded one of its biggest losses since April 2020, when the market was rocked by the coronavirus pandemic. Some investors took advantage of today’s massive sell-off as a buying opportunity. And it looks like the bearish sentiment has cooled quickly.
Oil prices extend decline as delta variant in China threatens recovery in oil consumption
Oil prices continue to fall on Monday, extending the steep losses from last week. This came in the wake of the rising US dollar and demand concerns in China. Remember that crude oil rebounded strongly in the first half of the year. This happened as the deployment of vaccines reopened major economies. Thus, stimulate the demand for oil and drain the glut accumulated during the first waves of the pandemic.
However, concerns about global oil demand resurfaced with the acceleration in the infection rate of the Delta variant. In particular, new restrictions imposed on China, the world’s second largest consumer of oil, could delay the global recovery in fuel demand.
Of course, China’s swift action to curb the spread of the virus would affect demand for oil. But the effect is likely to be short-lived if successful. Perhaps China’s track record of controlling the virus can serve as a guide. If so, demand for fuels could rebound in a few weeks.
More income to watch this week
Investors have a full list of corporate earnings to look forward to this week. One of the biggest names to report this week will be Walt disney (NYSE: DIS). But that will not take place until this Thursday. Some of the most anticipated gains this morning include The trade office (NASDAQ: TTD), BioNTech (NASDAQ: BNTX), and Workaholic group (NASDAQ: WKHS).
Some of the notable names reported after the closing bell today include AMC Entertainment, Chegg (NYSE: CHGG), SmileDirectClub (NASDAQ: SDC), and Inovio (NASDAQ: INO). So, whether it’s looking at inflation data, browsing the commodities market, or just following the earnings report, there should be plenty to keep you busy at the start of the week.