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Wall Street Ends Marginally Lower in Volatile Trading Session





U.S. stock markets ended slightly lower following a session of swinging between gains and losses as investors diverted their attention on a symposium of central bankers in Jackson Hole, Wyoming.


The markets received a brief increase of energy in afternoon trade following House Speaker Paul Ryan's statement, in which he voiced his confidence in pushing through with a tax-revamp package this 2017 and lifting the debt ceiling.


The Nasdaq Composite Index edged down 7.08 points, or 0.1%, at 6,271.33. The S&P 500 fell 5.07 points, or 0.2%, to end at 2,438.97, with 10 out of the 11 primary S&P 500 sectors closing lower. Consumer staples finished lower by 1.3% and industrials were down 0.4%


Meanwhile, the Dow Jones Industrial Average settled 28.69 points, or 0.1% lower, at 21,783.40. Amazon's announcement that it would lower prices of Whole Foods' products after the merger sent down the shares of other players in the grocery sector, with shares of Wal-Mart Stores Inc. posting the biggest decline.


The switching between small gains and losses in stocks comes amid a seasonally low-volume period, making trading susceptible to swings. Stocks saw their lightest volume day of the year on Wednesday, with only 5 billion shares traded. This is significantly below the year-to-date median of 6.54 billion.


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BRAZIL: Ibovespa Falls As Traders Turn Cautious Ahead Of Data





Ibovespa, the benchmark stock market index in Brazil, closed slightly down (-0.08%), at 71,017.19 points Monday, with traders turning cautious before the release of data regarding job creation in the United States and Brazil's Gross Domestic Product (GDP).


Also, a possible new criminal complaint against the Brazilian President Michel Temer kept some investors out of the game.


According to H.Commcor's chief operating officer, Ari Santos, the market players expect that any potential complaint against Temer will come out in the next few days before the attorney general Rodrigo Janot leaves office.


"Today's decline is not a profit-taking move consistent with recent highs, but marks the cautiousness of a complicated start to a week that promises many important indicators, such as the GDP of the United States and Brazil," said Pedro Galdi, an analyst at Magliano Consultora.


In the business sector, bank stocks fell, while Vale's shares rose despite the slowdown in the price of iron ore abroad. Bradesco's preferred shares lost 1.53%, Ita? Unibanco's shares fell 0.87%, and Banco do Brasil's common shares dropped 0.93%. Vale's preferred shares rose 1.56%.


Meanwhile, the locally traded U.S. dollar rose 0.25%, closing at R$ 3.1640, with investors waiting for relevant economic data. Possible news on the local political front has also collaborated to keep the currency around R$ 3.16.


For Tuesday, Santos says, the market trend depends on the possibility of a new complaint against Temer. Galdi sees chances for a slight rise, inflated by the vote favorable to the final text of the Long-Term Rate (TLP) institution in the Senate.


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Wall Street Flat as Tropical Storm Crippled Texas





Shares of oil refinery firms climbed on Monday after Tropical Storm Harvey forced refineries in Houston to shut down.


The Dow Jones industrial average dropped 0.02 percent to 21,808.40, as insurance giant Travelers contributed the most to the losses. The S&P 500 fluctuated between gains and losses before ending 0.05 percent higher at 2,444.24, as health care led six sectors up. The Nasdaq composite jumped 0.28 percent to 6,283.02.


Harvey, a hurricane that was downgraded to a tropical storm, ravaged Houston and other parts of Texas over the weekend, with over 30 inches of rain falling in some parts in just 48 hours. Houston is home to several major refineries in the U.S.


Oil majors Exxon and Chevron fell 0.3 percent and 0.4 percent respectively. Valero Energy, Phillips 66 and Marathon Petroleum all finished higher.


The S&P 500 financial sector was the biggest weight on the index, with a 0.5 percent decline.


Home Depot, which climbed 1.2 percent, and other companies likely to benefit from rebuilding efforts in the region.


Insurer Travelers weighed the most on the Dow with a 2.6 percent decline to $123.23, as Allstate dropped 1.5 percent to $90.6 while investors priced in the likely impact of Harvey on the sector.


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MEXICO: Country Will Seek 'Plan B' If Trump Pulls U.S. Out Of NAFTA





Threats by U.S. President Donald Trump to withdraw the United States from the North American Free Trade Agreement (NAFTA) during renegotiations are encouraging Mexico to create a "Plan B," said the Mexican Secretary of Economy, Ildefonso Guajardo Villarreal.


According to him, Mexico needs to be prepared to the possibility of the United States walking away from the NAFTA deal.


"The best thing Mexico can do is to have an alternate, clear, pragmatic, plan to tackle something that is not our goal, but that may be the result of a process that does not go ahead. We need to be prepared for a scenario in which the United States or its president leaves the NAFTA," Villarreal said in an interview with the El Economista newspaper.


According to him, Mexico must advance in its commercial diversification with South American countries, such as Brazil and Argentina, with the European Union, the Pacific Alliance, and other Asian countries.


Trump said there was little chance that the NAFTA renegotiation, currently underway between Mexico, Canada, and the U.S., would be successful. The president attributed the potential failure of the negotiations to Mexico, claiming that its Southern neighbor would be hampering a new agreement.


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Wall Street Recovers as Investors Brush off North Korea Tensions





U.S. stocks recovered on Tuesday following North Korea's launch of a ballistic missile over Japan which jolted global markets.


The missile was the first Pyongyang has fired over Japan's main island since 2009 and the latest in a series of direct provocations that have briefly added pressure on financial markets in recent weeks.


The Dow Jones industrial average pared earlier losses to close 0.26 percent higher to 21,865.37, as United Technologies and Boeing contributed the most gains. The 30-stock index dropped as much as 134.82 points earlier in the session.


The S&P 500 was in positive territory in afternoon trade, finishing the session 0.1 percent higher at 2,446.30, with industrials leading four sectors higher. The Nasdaq composite also trimmed losses to end 0.3 percent higher at 6,301.89 after Apple notched a record peak.


United Technologies rose 2.9 percent to $118.70 after The Wall Street Journal reported that the aircraft-equipment maker was near a deal to buy Rockwell Collins for over $20 billion.


Tech firms within the S&P 500 added 0.4 percent, led by Micron Technology, which climbed 1.3 percent, while Akamai Technologies advanced 1.3 percent.


The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, briefly increased over 20 percent before holding nearly 4 percent higher.


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Japan Industrial Production Slides 0.8% In July





Industrial output in Japan fell a seasonally adjusted 0.8 percent on month in July, the Ministry of Economy, Trade and Industry said on Thursday.


That missed forecasts for a decline of 0.3 percent following the 2.2 percent spike in June.


On a yearly basis, industrial production climbed 4.7 percent - again missing forecasts for 5.2 percent and down from 5.5 percent in the previous month.


Upon the release of the data, the METI maintained its assessment of industrial production saying was that it shows signs of picking up.


Industries that were down in July included business oriented machinery, electrical machinery and chemicals - while electronic parts, ceramics and petroleum products were up.


Shipments were down 0.7 percent on month and up 4.1 percent on year.


Industries that were down included business oriented machinery, electrical machinery and iron and steel - while electronic parts, petroleum products and transport equipment were up.


Inventories were down 1.2 percent on month and 2.4 percent on year.


Industries that saw decreased production included transport equipment, petroleum products and electrical machinery.


Industries that were up included non-ferrous metals, chemicals and electronic parts.


According to the survey of production forecast, industrial output is expected to rise 6.0 percent in August and fall 3.1 percent in September.


Industries that are expected to contribute to the increase in August include business oriented machinery, transport equipment and electrical machinery.


Industries expected to contribute to the decline in September include business oriented machinery, communications equipment and electronic parts.


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Wall Street Advanced as S&P 500 Hits 4-Day Winning Streak





U.S. stocks climbed on Wednesday following stronger-than-expected U.S. economic growth which counterbalanced concerns on heightened tensions between the United States and North Korea as well as uncertainty in the wake of Hurricane Harvey.


The Dow Jones industrial average rose 0.12 percent to 21,892.43, as Goldman Sachs contributed the most gains to the index.


The S&P 500 rose 0.46 percent to end at 2,457.59, with information technology leading eight sectors higher. The S&P also marked a four-day winning streak, its longest since late May.


The tech-heavy Nasdaq composite advanced 1.05 percent to 6,368.31, leading other major U.S. indexes, and touched a three-day winning streak.


Netflix lifted the Nasdaq higher as it climbed over three percent after Bernstein analysts said that Disney pulling its content from the platform will not impede the stock performance of Netflix.


Apple also contributed to the Nasdaq's gains, gaining 0.2 percent to notch a record peak earlier in the session.


Other major stocks in the tech sector also advanced, including Facebook and Google-parent Alphabet. The sector is by far the best-performing sector in 2017, gaining over 20 percent.


Among shares in corporate news, Tax preparation service provider H&R Block dropped 8.3 percent to $26.81 after it posted a larger-than-expected loss. Chipmaker Analog Devices rose 5.2 percent at $83.72 after its quarterly earnings and forecast surpassed expectations.


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S&P Maintains Sweden's Sovereign Ratings





Standard & Poor's maintained the sovereign ratings of Sweden at 'AAA' with 'stable' outlook and upgraded Lithuania's rating outlook to positive.


The agency said Sweden benefits from high institutional effectiveness, substantial fiscal buffers, and ample monetary policy flexibility.


The stable outlook reflects the assessment that over the next two years, Sweden's key fiscal, external, economic, and monetary metrics will remain among the strongest of the 131 sovereigns rated by S&P. Despite political fragmentation, S&P expects the Swedish government to maintain fiscal discipline and to pay down public debt. The transparent institutional setting and robust economic fundamentals cushion uncertainties from prospects of snap elections or re-formation of government, the agency said.


According to S&P, Sweden's booming economy is set to motor on at a strong pace through 2017-2018, while high household debt continues to loom as a key risk.


As growth in house prices has exceeded that of disposable income and inflation, a house price correction could lead to a marked reduction in consumption, hampering the Sweden's economic performance and burdening the financial sector, S&P said.


In a separate communique, S&P said the outlook on Lithuania's rating was revised to positive from stable on expectations that Lithuania's economy will post strong balanced growth over the medium term.


The 'A-' ratings on Lithuania reflect the country's economic prospects over the next two years, although it has one of the lowest GDP per capita ratios in the Eurozone.


S&P expects Lithuania's open economy to perform well, fueled by firming exports, rising consumption and strong investment activity, supported by new EU financing cycle.


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Stock Futures Drop on North Korea Tensions





U.S. equity index futures fell at the open on Sunday, with stock traders being cautious after news that North Korea had raised diplomatic tensions by conducting what it claimed was a test of a hydrogen bomb for a long-range missile.


On Sunday, Pyongyang conducted its sixth and most powerful nuclear test, in what appears to be a tense escalation of North Korea's stand-off with the United States and its allies.


S&P 500 e-mini futures dropped 0.36 percent as electronic trading resumed on Sunday evening. The decline revealed that traders are cautious but not completely threatened by news on North Korea. Volumes were higher than average, as 30,2000 contracts changed hands.


The 10-year Treasury futures were 0.16 percent higher on the day.


“Traders have been burned by overreacting to the news out of North Korea multiple times over the last month – most recently after missiles were shot over Japanese territory,” according to Nicholas Young, a partner at Conventus Capital LLC in New York. “Unless we get a real response from the U.S., the market seems desensitized to these items.”


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Australia Current Account Deficit Balloons To A$9.562 Billion





Australia had a current account deficit of A$9.562 billion in the second quarter of 2017, the Australian Bureau of Statistics said on Tuesday.


That missed forecasts for a shortfall of A$7.5 billion following the downwardly revised A$4.754 billion deficit in the first quarter (originally -A$3.1 billion).


Net exports of GDP came in at 0.3, topping expectations for a flat reading following the 0.7 decline in the three months prior.


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