CURRENCY MARKET WRAP
As of Mon Sep 2nd, Singapore Time zone UTC+8
U.S. Dollar Index, +0.30%, 98.81
USDJPY, -0.20%, $106.31
EURUSD, -0.60%, $1.0991
GBPUSD, -0.23%, $1.2184
USDCAD, +0.20%, $1.3312
AUDUSD, +0.16%, $0.6737
NZDUSD, -0.05%, $0.6308
U.S. Personal income increased 0.1% m/m in July (consensus +0.4%), which was weaker than expected thanks to a 1.8% decline in personal interest income, but personal spending increased a stronger-than-expected 0.6% (consensus +0.5%). The PCE Price Index and core PCE Price Index, which excludes food and energy, were both up 0.2%, which was also expected. The key takeaway from the report is that consumer spending is solid and inflation is stable, albeit at below-target levels. All in all, there isn’t a lot of ammunition in the report for the Fed to fire off a 50-basis points rate cut at its September meeting.
U.S. Treasuries finished slightly higher in a muted session. The 2-yr yield declined two basis points to 1.50%, and the 10-yr yield declined one basis point to 1.51%. The U.S. Dollar Index advanced 0.3% to 98.81.
In Canada, the economy blew past projections by expanding at an annualised pace of 3.7% in the second quarter (consensus 3.0%), giving Canada its strongest three-month stretch of growth in two years.
STOCK MARKET WRAP
S&P500, +0.06%, 2,926.46
Nasdaq, -0.13%, 7,962.88
Nikkei Futures, +1.12%, 20,690.0
The stock market finished little changed on Friday in a lackluster session before the holiday weekend. The S&P 500 (+0.06%) and Dow Jones Industrial Average (+0.2%) finished just above their flat lines, while the Nasdaq Composite (-0.13%) and Russell 2000 (-0.1%) finished slightly lower.
The market struggled to find direction amid missing leadership from some of its biggest technology names within the S&P 500 consumer discretionary (-0.6%), communication services (-0.1%), and information technology (unch) sectors. The materials (+0.7%), industrials (+0.4%), and financials (+0.4%) sectors did provide some support for the broader market.
In earnings news, shares of Ulta Beauty (ULTA 237.73, -99.72, -29.6%) tanked 30% after the company missed revenue estimates and lowered its full-year guidance. Workday (WDAY 177.28, -10.37, -5.5%)led the cloud software stocks lower despite positive results and upbeat guidance.
Notable standouts included Dell (DELL 51.53, +4.76, +10.2%)and Campbell Soup (CPB 45.00, +1.69, +3.9%) after both beat earnings expectations.