Stocks Decline on Global Economic Concerns

First Look

Stocks are lower in the pre-market Tuesday. Gold prices continue higher and the 30-year Treasury bond is approaching record lows as concerns that the global economy is weakening continue to mount. Industrial production numbers from the U.S. and China will shed additional light on the global economy. European GDP data scheduled to be released this week as well. Singapore cut its growth outlook from 1.5-2.5% to 0-1% as the lingering trade war takes its toll on economies heavily reliant on trade. The Argentine peso fell 25%, reaching record lows of 60 per dollar Monday after President Mauricio Macri’s defeat in primary elections. German stocks continue to fall following the ZEW reading on the nation’s economy. The reading showed a decline in investor confidence not seen since 2011 after Germany’s economic outlook fell for a fourth month. The S&P 500 is down -0.17%, the Dow Jones is down -0.19%, the Nasdaq is down -0.25%.

Today's market outlook is Neutral

Every great dream begins with a dreamer.
Harriet Tubman

Stocks on the Move

Invesco Ltd. (IVZ), Newmont Goldcorp Corp (NEM) and Advanced Micro Devices, Inc. (AMD) are moving higher this morning, while Advance Auto Parts, Inc. (AAP), AutoZone, Inc. (AZO) and Nektar Therapeutics (NKTR) are headed lower. Paypal Holdings Inc (PYPL), Barrick Gold Corp (GOLD) and Exelon Corporation (EXC) were upgraded by analysts this morning, while Southwest Airlines Co (LUV), Avedro Inc (AVDR) and NextEra Energy Inc (NEE) were downgraded.

International Markets

Stocks in Asia are down. The Hang Seng is down -2.1%, the Mumbai Sensex is down -1.66%, the Nikkei 225 is down -1.11% the Shanghai SE Composite Index is down -0.63% and the Australia ASX All Ordinaries is down -0.33%.Stocks in Europe are down. The DAX is down -0.96%, the FTSE 100 is down -0.68%, the Euro Stoxx 50 is down -0.66% and the CAC 40 is down -0.6%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.5 at 54.43 per barrel. Brent crude is down -0.39 at 58.18 per barrel. Natural Gas is down -0.01 at 2.1. Precious metals are up this morning. Gold is up 13.91 at 1525.07 per ounce. Platinum is up 6.51 at 864.42 while silver is up 0.34 at 17.42. The dollar is down compared to the major currencies today. The greenback is down against the euro, down against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 767,458 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 599,239 put contracts. The single-session put/call was 0.78 while the 20-day moving average is now at 0.7.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
CPI Jul 08:30

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