4:05pm: US equities lower on tapering plans, Afghanistan
US stocks closed lower as investors await more details on the Federal Reserve’s tapering plans.
Also, two deadly attacks in Afghanistan weighed on investors. The Pentagon confirmed 12 US service members were killed and 15 wounded after two explosions outside the Kabul airport.
On the day, the DJIA fell 192 points, or 0.54%, to 35,213 and the S&P 500 declined 0.58% to 4,469. The tech-heavy dropped 0.64% to 14,945.
12.20pm: Proactive North America headlines:
Naturally Splendid says NATERA plant-based products to launch at Denny’s restaurants across Canada
RedHill Biopharma (NASDAQ:RDHL) reports second quarter 2021 results, showing record quarterly revenues
Todos Medical says its Provista Diagnostics lab completes validation of Kogene Variant Test Kit to identify coronavirus variants
Altiplano Metals sees copper grades increase again in July as Farellon delivers US$243,900 in revenue for the month
American Eagle says drill permitting is underway at Golden Gate as it prepares for fall drill program
NEO Battery Materials receives three new silicon anode prototype requests
Gevo files for environmental permits in South Dakota for its Net-Zero 1 project
Kootenay Silver discovers potential new high-grade zone at Columba Silver project
ElectraMeccanica (NASDAQ:SOLO) to showcase SOLO EV at Advanced Clean Transportation Expo in Long Beach from Aug 31-Sept 1
Predictmedix deploys four Safe Entry Stations for upcoming Palm Tree Music Festival in New York
CO2 GRO selected to participate in September virtual trade mission to Mexico
Mindset Pharma says its Family 3 psilocybin analogs demonstrate long-acting duration in preclinical trials
Cabral Gold doubles area of PDM gold-in-oxide blanket target at Cuiú Cuiú in Brazil
Tocvan Ventures set to kick off trenching program at Pilar project in October this year
Pathway Health (TSX-V:PHC) excited about growth opportunities ahead as it reports second quarter results
Kodiak Copper restarts drilling at MPD copper-gold porphyry project
Lucky Minerals (TSX-V:LKY, OTC:LKMNF) secures over C$2.5M of commitments towards a C$3.5M non-brokered private placement
Nextech finalizes acquisition of ARWAY, a critical move towards developing metaverse
Silvercorp Metals increases resources and reserves at its GC mine; sees potential to extend mine life past 2034
Safe-T Group (NASDAQ:SFET) reports record Q2 results on rising demand for its privacy platform
Major Precious Metals updates on its Phase I diamond drilling program at Skaergaard Project in Greenland
Empower Clinic appoints pharmacy veteran Annette Robinson to its global advisory board
Amarillo Gold Corporation (TSX-V:AGC, OTCQB:AGCBF, FRA:72A) reports a quarter of steady progress and consolidation in Brazil
RedHill Biopharma (NASDAQ:RDHL) demonstrates strong inhibition by opaganib of the coronavirus (COVID-19) Delta variant
i-80 Gold says application for the company's common shares to begin trading on the OTCQX Best Market has been accepted
American Manganese successfully produces electrolytic manganese metal in the final stages of Wenden Stockpile project
12:05pm: US benchmarks slide into the red at midday
The Dow Jones Industrial Average was down 66 points to 35,338 by midday on Thursday, with the S&P 500 shedding 13 points at 4,482. The weak sentiment continued over to the Nasdaq Composite which lost 37 points to sit at 15,004.
Investors were displaying caution ahead of Federal Reserve boss Jerome Powell’s speech at the Jackson Hole virtual symposium tomorrow.
“Powell may say something significant during his appearance tomorrow which sends shockwaves through the markets. He may suggest the Fed is committed to tapering despite the softness that's appeared in the data and the spread of the delta variant across the US that threatens to weigh on economic activity in the coming months,” Craig Erlam, senior market analyst, UK & EMEA at OANDA wrote in a morning market note.
Erlam went on to note that in light of recent global events including the growing number of coronavirus (COVID-19) Delta variant cases may prompt the Fed to hold back on its proposed tapering plans.
“Both would get very different reactions in the markets. But they would also be out of character for the Fed Chairman and while he may lean more towards the dovish side of the argument on this, policymakers since the last meeting have erred more on the other side,” Erlam explained.
Elsewhere mounting concerns about the crisis in Afghanistan added to the risk-off mood investors displayed.
The US evacuation efforts were disrupted with the Pentagon confirming that an explosion took place Thursday at Kabul airport, leaving an unconfirmed number injured or dead.
9.55am: Wall Street starts mixed
Wall Street benchmarks started mixed on Thursday as traders digested the latest gross domestic product (GDP) data and have an eye on the Jackson Hole central banker event, which starts today.
In early deals, the Dow Jones Industrial Average was up around 65 points at 35,471. The S&P 500 lost around three points at 4,492, while the technology stock laden Nasdaq lost around seven points to stand at 15,034.
In the second quarter, to June 30, US GDP, seen as a kind of scorecard for the American economy, rose at a revised 6.6% annual pace, a bit more than previously reported.
Economists now reckon the third-quarter GDP will increase by 7%.
"The rebound in the US economy from last year’s slump of -31.4% fall in GDP, has been decent, with four consecutive quarters of expansion, although the extent of the rebound has been slightly less than was anticipated back in April," noted market analyst Michael Hewson, at CMC Markets in a note.
"In Q1 the economy expanded by 6.4%, driven largely by two big stimulus interventions by the US government at the end of last year, as well as in March. The spill over effects of this were expected to accelerate into the Q2 numbers, especially given that the various fiscal interventions are still ongoing and due to expire in September," he said.
"Nonetheless the extent of the economic rebound in Q2 was somewhat below expectations with initial expectations of 8.5% falling well short at 6.5%," he concluded.
6.55am: US indices set for lower start
US stocks look set for a retreat on Thursday ahead of 2Q GDP and weekly jobless data that could add to the clues over possible Federal Reserve tapering ahead of the central bank's Jackson Hole symposium.
Futures for the Dow Jones Industrial Average and the S&P 500 index were both 0.1% lower, while Nasdaq-100 futures shed 0.3%. The S&P 500 and the Nasdaq Composite index have both hit hit new all-time highs this week.
Investors are awaiting speeches from Federal Reserve officials on Friday that could offer cues on the central bank’s plans for tapering stimulus measures, with some betting that the Fed may slow those plans if there are signs that the economic recovery is faltering.
Data on the US economy’s growth in the second quarter and the latest weekly jobless claims are both due at 8.30am ET. Jobless claims reached a new coronavirus (COVID-19) pandemic low in the second week of August and forecasters expect the latest numbers to be relatively unchanged.
On the corporate front, Salesforce.com shares rose after the business software company reported a jump in quarterly sales and raised its full-year outlook on Wednesday evening. Gap and Dell Technologies are among firm's scheduled to post results after the market close on Thursday.
Five things to watch on Thursday:
Microsoft Corp. has hired a top Amazon.com Inc. cloud veteran and ally of chief executive Andy Jassy, according to a company document, with Charlie Bell, who left Amazon Web Services recently, now listed by Microsoft as a corporate vice president, according to an internal employee register viewed by The Wall Street Journal.
Cosmetics maker Coty Inc (NYSE:COTY) expects to return to annual sales growth for the first time in at least three years as people splurge on fragrances and beauty products following the easing of coronavirus restrictions.
Western Digital Corp. is in advanced talks to merge with Japan’s Kioxia Holdings Corp., according to people familiar with the matter, in a deal that could be valued at more than $20 billion and further reorder the global chip industry, the Wall Street Journal said in an exclusive.
Kuaishou Technology, a major rival to TikTok owner ByteDance Ltd. in China, has said it expects tighter regulations to hurt its revenues, adding that it would try to weed out undesirable content that authorities have frowned upon.
The US Securities and Exchange Commission is investigating Deutsche Bank (NYSE:DB)'s asset manager DWS over how it used sustainable investing criteria to manage its assets, two people with knowledge of the matter have told Reuters.