Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
Get ready! It's going to be an exciting day for investors.
1) China's currency moves
The Chinese yuan dropped sharply against the U.S. dollar overnight after China's central bank announced a surprise policy change.
The central bank said it decided to allow market forces greater control over the yuan, and announced a major change in how the currency's daily "fix" or "midpoint" will be calculated.
The sudden devaluation is the largest in two decades, and comes amid a period of slower economic growth and increased stock market volatility in China. A devalued currency will give a boost to Chinese exporters and lend support to the wider economy.
2) Google shares set to surge
Google (GOOGL, Tech30) stock is rallying about 6% premarket after the tech giant announced a massive restructuring plan.
Google is going to have a new parent company -- called Alphabet -- that will separate its Internet based business from its research undertakings. The company is also making some management changes.
Both the voting-class GOOGL (GOOG) shares and other GOOG (GOOSY) shares will switch automatically to Alphabet stock when the restructure rolls out later this year. The ticker symbols will remain the same.
3) Greek bailout 3.0
Greece and its eurozone partners are poised to finalize a third bailout deal worth about 86 billion euros ($95 billion).
Negotiators had been trying to iron out some final details over the last few days. A spokesperson for the Greek Finance Ministry told CNN that negotiations have wrapped up.
The bailout is intended to help Greece pay its debts and reform its economy after years of overspending and financial mismanagement. Greece has already received two previous bailouts worth 233 billion euros ($257 billion).
4) Stock market overview
European markets are mostly declining in early trading, though Greek stocks rose 1.5% as the country moved closer to securing a new bailout.
Shares in British fashion house Burberry (BBRYF)sank nearly 3% as investors worry that a weaker Chinese currency will hurt sales in this key market.
Asian markets broadly finished the day in the red.
U.S. stock futures are pointing down. But the Nasdaq is bucking the trend and holding steady ahead of the open, supported by Google's premarket jump.
It follows a positive session for U.S. stocks Monday. The Dow Jones industrial average, S&P 500 and Nasdaq all gained more than 1%, after many days of losses.
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What is it? It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer.
When? At 5:00 Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's a leading indicator of economic health - investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity.
When? At 5:00 Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the EUR to rise.
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1) Wall Street opened higher on Monday, with the Dow looking to break a seven-day losing streak, after Warren Buffett's Berkshire Hathaway's $37.2 billion to buy Precision Castparts showed the M&A boom was alive and well. Adding to the positive sentiment, poor data out of China boosted hopes for additional stimulus from Beijing. Greek banks could get a first capital injection soon after a bailout deal is agreed, and before the ECB can conduct stress tests, a euro zone official told Reuters. (According to Reuters)
2) The euro was almost unchanged against the broadly stronger dollar in quiet trade on Monday, as expectations for higher U.S. interest rates continued to underpin demand for the greenback.
EUR/USD was last at 1.0964, little changed for the day. (According to Investing.com)
3) U.S. natural gas prices edged higher on Monday, as extreme heat spread across the southern half of the U.S., boosting demand expectations for the fuel.
Natural gas for delivery in September on the New York Mercantile Exchange jumped 4.3 cents, or 1.52%, to trade at $2.841 per million British thermal units during U.S. morning hours. (According to Investing.com)
4) ATHENS - Greece and international creditors sought to put final touches on a multi-billion euro bailout accord on Monday to keep the country financially afloat and meet an important debt repayment to the European Central Bank within days.
Greek ministers and representatives of European institutions and the International Monetary Fund resumed talks on Monday morning after a marathon session that ended in the pre-dawn hours. (According to Reuters).
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
There aren't many people in the world who can single-handedly move markets. But Warren Buffett is one of them.
1) The Buffett effect
Shares in airplane parts manufacturer Precision Castparts (PCP) are rising by about 13% premarket on expectations that Warren Buffett's firm Berkshire Hathaway (BRKB) is set to buy the company.
There are reports saying the deal could be worth more than $30 billion.
Berkshire already holds a 3% stake in the company, which is based in Portland, Oregon.
2) Crude collapse
The price of oil touched its lowest point of the year this weekend, briefly dropping to about $43.40 per barrel. Crude has recovered slightly but is still trading below $44 per barrel.
The price of oil has declined by nearly 30% since mid-June.
3) Summer slowdown
It's relatively calm across other global markets.
U.S. stock futures are holding steady, and the U.S. dollar is rising against a range of other currencies.
European markets are slipping in early trading.
Asian markets ended with mixed results, with Chinese stocks surging. The Shanghai Composite shot up nearly 5% Monday after enduring some extreme volatility over the past few months.
4) Earnings updates
There are a handful of major firms reporting earnings after the closing bell, including Kraft Heinz (KHC) and Shake Shack (SHAK).
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
When? At 9:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.
When? At 12:25pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.
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1) U.S. employment rose at a solid clip in July and wages rebounded after a surprise stall in the prior month, signs of an improving economy that could open the door wider to a Federal Reserve interest rate hike in September.
Nonfarm payrolls increased 215,000 last month, fewer than the 223,000 forecast by economists, but the unemployment rate held at a seven-year low of 5.3 percent. Average hourly earnings also increased last month after stalling in June.
2) U.S. stocks opened lower on Friday after data showed steady job growth in July, increasing the chances Federal Reserve will raise interest rates in September.
3) The dollar moved broadly higher against the other major currencies on Friday, even after data showed that U.S. nonfarm payrolls rose less than expected last month, while average hourly earnings increased in line with projections.
EUR/USD dropped 0.49% to 1.0874.
4) The dollar gained and Wall Street stock futures extended losses as U.S. jobs data came near enough to expectations to bolster bets the Federal Reserve will raise rates for the first time in nearly a decade this year.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
Get ready for the U.S. jobs report, the single most important economic release of the month.
1) Jobs report
The federal government is releasing its much-anticipated July employment report at 8:30 a.m. ET.
Reaction to the report could move stocks and currency markets around the world.
The expectation is that the Labor Department will say that 216,000 new jobs were created last month. That would be a slight drop off from June when the economy added 223,000 jobs. But ultimately, anything over 200,000 is considered a "good" number, indicating a healthy economy.
Experts expect the unemployment rate to stay steady at 5.3%. When it dropped to that level in June, it was the lowest rate since April 2008.
Year-over-year wage growth is expected to increase to 2.1%, up from 2% in the last report.
The Federal Reserve will keep a close eye on the new numbers. The central bank has been hinting at a rate increase for months, and a strong jobs report could clear the way for that hike to happen in September.
2) Stock slump
U.S. stock futures are holding steady ahead of the jobs report.
If the Dow Jones industrial average posts another fall Friday, that would mark the seventh consecutive trading day of declines.
The Dow has dipped by 2.3% since the start of the year. But the S&P 500 and NASDAQ are still in positive territory over the same period.
Asian markets ended with mixed results. Meanwhile, European markets are mostly declining in early trading.
"Disappointing French and German industrial production figures, posted before European markets started trading, have ensured a dominance of red on trading screens," explained Alastair McCaig, a London-based market analyst at the broker IG.
Greek markets are stabilizing after a week of heavy losses.
3) Market mover
Nvidia: Shares in Nvidia (NVDA, Tech30), a graphics company, are shooting up by about 10% premarket after the firm released better-than-expected earnings Thursday night.
4) Earnings
Quarterly earnings from companies including Hershey (HSY), Sotheby's (BID), Cablevision (CVC) and Groupon (GRPN) are coming out ahead of the open.
After the close, Berkshire Hathaway (BRKB) will report results. The company -- led by billionaire Warren Buffett -- is the fourth largest company in the U.S. and has invested significantly in Kraft Heinz (KHC), Goldman Sachs (GS) and Coca-Cola (KO).
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What is it? This is the earliest data related to labor inflation. Source changed series calculation formula as of Feb 2010. It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
When? At 8:30Am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
When? At 10:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD to rise.
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What is it? This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD to rise.
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What is it? It's an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD to rise.
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What is it? It's among the primary methods the BOJ uses to communicate with investors regarding monetary policy. It covers the factors that affected the most recent interest rate decision, the overall economic outlook, inflation, and clues regarding future monetary policy.
When? At 2:30am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the JPY to rise.
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1) The Bank of England pointed to a possible increase in interest rates early next year, after only one of its top policymakers backed an immediate move and the Bank forecast a slow pick-up in inflation from zero thanks to a strong pound.
2) International Business Machines Corp (N:IBM) said it would buy Merge Healthcare Inc (O:MRGE), which provides medical images and clinical systems, in a $1 billion deal. Merge Healthcare shareholders will get $7.13 per share at a premium of 31.8 percent over Wednesday's close, the companies said.
3) U.S. oil futures fell to the lowest level in more than four months on Thursday, while Brent traded close to a six-month low, amid perceptions that a global supply glut may stick around for much longer than once anticipated.
4) U.S. stocks opened little changed on Thursday as investors took to the sidelines ahead of Friday's jobs data, which could signal the timing of an interest rate hike.
5) The U.S. dollar was steady against its Canadian counterpart on Thursday, hovering near the previous session's 11-year high after data showed that U.S. jobless claims rose less than expected last week.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
Brace yourself for some big-name stocks like Tesla to swing wildly this morning when trading gets underway.
1) Major movers
Tesla, Mondelez, Keurig, Transocean: Shares in Tesla (TSLA) are set to fall by roughly 6% at the open after the company warned that it might not deliver as many electric vehicles in 2015 as it originally expected.
Mondelez (MDLZ) shares are set to rally by about 8% after investment firm Pershing Square, led by activist investor Bill Ackman, announced it had bought a 7.5% stake in the food firm.
Quarterly earnings from Keurig (GMCR) sent its stock price plummeting nearly 30% in extended trading. It reported weak sales and plans to lay off more than 300 workers.
And shares in Transocean (RIG) are rallying by 6% premarket after the oil services firm reported better-than-expected earnings late on Wednesday.
2) Media slump continues
Investors were selling media stocks Wednesday, and that downward momentum could continue into Thursday.
The selling was apparently triggered by anxiety about cable customers ditching their subscriptions.
21st Century Fox (FOX) and CBS (CBS) reported earnings after the closing bell Wednesday. Both companies did better than analysts were expecting, yet both companies' stocks were down in after-hours trading.
3) Earnings
Sea World (SEAS), Build-A-Bear (BBW), Cinemark (CNK), New York Times (NYT), Orbitz (OWW), Rio Tinto (RIO), Michael Kors (KORS), Adidas (ADDDF) and Viacom (VIA) are among the companies reporting quarterly earnings this morning.
After the closing bell, companies including Zynga (ZNGA), Post (POST) and Overstock.com (OSTK) are expected to report.
4) Economics
Weekly unemployment claims data will be released by the U.S. government at 8:30 a.m. ET. At 10:30 a.m. commodity traders will get to see the latest data on natural gas inventories.
In the U.K., the Bank of England is issuing its decision on interest rates Thursday, as well as publishing the minutes from its rate meeting and releasing an inflation report.
Economists don't expect the central bank to change its rates, but they're excited for the data drop nonetheless.
"The Bank of England [is] ... overloading economists with goodies and producing a sugar-induced moment of hyperactivity," said Paul Donovan, a senior economist at UBS.
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