US Market Outlook: Strong Jobs and GDP Data, Fed Meeting Ahead, Earnings from Meta and Microsoft
U.S. Pre-Market Update: Economic Data and Stock Movements
Economic Indicators Surpass Expectations
On Wednesday, U.S. stock futures showed slight gains ahead of the market opening. Key economic data released indicated that July's ADP employment numbers and Q2 GDP both exceeded expectations.
- ADP Employment: Increased by 104,000 in July, surpassing the forecast of 77,000 and rebounding from a previous decrease of 33,000.
- Q2 GDP: The initial annualized quarterly growth rate was reported at 3%, compared to an expected 2.4% and a previous decline of 0.5%.
President Trump has called for the Federal Reserve to lower interest rates, emphasizing the positive GDP results.
Stock Movements
In pre-market trading, major tech stocks showed mixed results:
- Gainers: META up nearly 1%, NVIDIA, Microsoft, and Tesla slightly higher.
- Losers: Apple, AMD, and Google saw minor declines.
Among Chinese stocks, most were down, with Alibaba dropping over 10% and NIO and Li Auto down about 2%. Luckin Coffee, however, rose over 5%.
Notable Company Updates
Marvell Technology (MRVL): Shares rose nearly 9% after announcing a partnership with AI semiconductor company Rebellions to provide customized solutions for AI infrastructure.
New Oriental Education (EDU): Shares fell over 10% as Q4 net profit plummeted by more than 73%. Despite a 9.4% increase in net revenue, operational losses were reported.
Vertiv Holdings (VRT): Stock increased over 5% following a 35% year-on-year rise in Q2 net sales.
VF Corporation (VFC): Shares surged over 20% after reporting Q1 revenue of $1.8 billion, meeting market expectations.
FuboTV (FUBO): Stock rose nearly 9% after Vanguard disclosed a stake of 8.6%.
SoFi Technologies (SOFI): Shares dropped over 7% as the company plans to issue $1.5 billion in stock, with a potential discount of up to 6.9% from Tuesday's closing price.
Starbucks and Market Reactions
Starbucks reported a 2% decline in same-store sales for Q3, although it marked the first growth in the Chinese market in 18 months. The stock rose nearly 6% in pre-market trading.
Federal Reserve Meeting Anticipation
The Federal Reserve's July meeting is expected to maintain interest rates, but attention is on Chairman Powell's comments regarding potential rate cuts in September. Two dissenting votes from dovish members could signal internal disagreements within the Fed.
Market Outlook
Investors are preparing for a critical period with upcoming economic events and corporate earnings reports. The market has recently seen record highs, driven by resilience in the U.S. economy and optimism surrounding AI growth.
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