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Current Futures: Dow +31.00, S&P +4.70, NASDAQ +8.00
U.S. markets are currently trading mixed, even though overnight markets managed to trade and close into the green.
Both the S&P 500 and the Dow Jones indexes are trading near the break-even line, after retail sales rose more than expected in June. This report had a strong influence among the U.S. sectors, lifting most consumer companies, since any change in retail sales will directly influence these companies’ earnings. Moreover, Goldman Sachs reported record revenues throughout the second quarter, and much more than analysts had expected. Earnings per common share was $4.93 in Q2, taking its revenues to $13.8 billion, while analysts had projected a $3.54 EPS. TheLFB-Forex.com Trade Team noted that the report earnings of Goldman Sachs annualized is bigger than the GDP of 2/3 of the total countries in the world taken individually, which would make GS the richest 64th country in the world out of 190.
During the U.S. session, a release showed that retail sales rose 0.6% in June, more than what markets had expected. However, TheLFB-Forex.com Trade Team commented that taken individually, the retail sales report is actually bad. Much of the increase came from higher gas prices and higher auto sales. Without these two items, retails sales actually fell 0.2% in June, which shows that retail sales remained lethargic over the last period. At the same time, business inventories continued to contract at the same strong pace as over the last few months, which means that the economy has continued to contract at a considerable pace throughout the second quarter.
The Dow Jones Index slipped 15.35 points (0.18%) to 8,316.33, while the S&P 500 index gained 0.11 points (0.01%) to 901.16.
Crude oil for August delivery was recently trading at $59.40 per barrel, lower by $0.40. Oil was heading higher during the overnight session, but now is once again declining.
Gold for August delivery was recently trading higher by $1.60 to $924.60. For now, gold is testing the 100-day moving average.
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