Don’s Notebook July 26, 2018

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Government Report Notables:

Key pieces for tomorrow’s GDP report will be released today: capital goods shipments in the durable goods report, cross-border goods trade as well as wholesale and retail inventories.

Jobless claims remain very low in confirmation that employers are holding onto their workforces. Initial claims in the July 21 week came in at 217,000 which is a bit better than estimates of 219,000. The 4-week average is down nearly 3,000 to 218,000.

Overnight Trading Notables:

  • The MSCI Asia Pacific Index rose 0.3 percent
  • Japan’s Topix index closed 0.7 percent higher as investors welcomed the cooling of the trade standoff between the EU and the U.S.
  • In Europe, the Stoxx 600 Index was 0.6 percent higher at 5:45 a.m. in a broad-based recovery led by the region’s carmakers.

 

Nasdaq Notables:

The Nasdaq is looks to open lower this morning after a worse-than-expected forecast from Facebook that sent that stock down as much as 25 percent in after-hours trading.

  • The Nasdaq had set a record closing high in Wednesday trading.
  • Facebook shares were 16 percent lower in premarket even though the company said revenue growth would slow during the second half of the year and expenses would be higher.
    • It did beat estimates by two cents with profit of $1.74 per share, but revenue and other key metrics fell short.

Earnings Notables:

  • Dow component McDonald’s, Visa and Comcast highlight a busy morning for corporate earnings.
  • Amazon, Chipotle Mexican Grill, Nissan Motors, AstraZeneca, Dunkin Brands Group, McKesson, Xerox, Hershey, UnderArmour, Mastercard, Altria Group, Newmont Mining and Starbucks (SBUX) are among the other notables in today’s long roster of quarterly earnings announcements.
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Dr. Don Pratl is Director of Trader Development and Education for TradeStation. He joined TradeStation in 2016 after holding similar roles with other online brokerages. Don’s long career in the financial services industry reflects expertise in administering trading and investment strategy programs for retail investors as well as financial services professionals. Since the 1980s, he has held various positions in areas including CBOE trading floor order execution, marketing, sales, personnel management, training and customer service. Don holds series 3, 4, 7 and 63 FINRA licenses, earned his Ph.D. in Organization and Management, and his M.A. and B.A. in Political Science. He has been an occasional adjunct college instructor since 2004 at a range of institutions, teaching undergraduate, graduate and doctoral students using in-class and online formats.