Continuing Jobless Claims Decline To 16.2 Million
Initial Jobless Claims increased to 1.4 million compared to analyst consensus of 1.3 million. This is a negative surprise which highlights the challenging situation in the job market.
Meanwhile, Continuing Jobless Claims declined to 16.2 million compared to analyst consensus of 17.1 million. The material decline in Continuing Jobless Claims may offset the negative suprise from the Initial Jobless Claims report.
S&P 500 futures are mixed in premarket trading after the release of employment reports.
Tesla Beats Earnings Estimates
Shares of Tesla are gaining ground in premarket trading after the company reported a second-quarter profit which put it on path to be included in S&P 500.
In order to get into S&P 500, a company must be profitable for the last four quarters, among other requirements. In case Tesla gets into S&P 500, index funds will be forced to buy its shares, sending them higher.
During the earnings call, Tesla confirmed that it would build the next Gigafactory in Austin, Texas. Elon Musk also urged miners to get more nickel out of the ground since it is needed for batteries used in Tesla cars.
The dynamics of Tesla shares, which were up 280% year-to-date before the release of the second-quarter report, have a significant impact on market mood. Together with other encouraging earnings reports, Tesla’s performance may help the market ignore the continued problems on the coronavirus front and deterioration in U.S. – China relations.
U.S. President Donald Trump Suggests That More Chinese Consulates May Be Closed If Necessary
U.S. – China relations are getting worse day by day, hurting the upside momentum of stocks and putting pressure on oil prices which have recently managed to get above the key resistance level.
Donald Trump stated that it was always possible to close more Chinese consulates in the U.S. while FBI suggested that a Chinese researcher who was accused of visa fraud was hiding in the Chinese consulate in San Francisco.
Previously, China promised to introduce counter-measures but did not reveal any such measures. While the stock market has mostly ignored increasing tensions, oil may find it hard to ignore the feud between the two biggest economies of the world.
For a look at all of today’s economic events, check out our economic calendar.