Stock Futures Rebound After Durable Goods Orders Surge

Strategic Insights -

The S&P 500, Dow Jones Industrial Average, and Nasdaq futures posted significant gains on Wednesday, with stock futures rebounding after durable goods orders in July posted a surprise increase of 2%. This was contrary to economists' predictions of a 0.6% decrease. The People's Bank of China also announced plans to inject 140 billion yuan ($21.80 billion) into its financial system to revive its economy, a move that sparked volatility in the Chinese stock market, which ended down 1.3%.

Key Takeaways:

  • S&P 500 futures surged 2%, Dow Jones Industrial Average futures climbed 2%, and Nasdaq futures jumped 2.1% after durable goods orders in July came in much stronger than expected.
  • U.S. durable goods orders posted a surprise increase of 2% in July, with business investment seeing its biggest increase in 13 months.
  • Orders for core capital goods jumped 2.2%, exceeding economists' predictions by a wide margin.
  • The People's Bank of China announced plans to inject 140 billion yuan ($21.80 billion) into its financial system to revive its economy.
  • China's stock market was gripped with volatility on Wednesday, ending down 1.3% after whipsawing between gains and losses as big as 4%.
  • High-momentum tech stocks like Apple, Netflix, Google, Facebook, and Amazon were on the move in premarket trading, with significant gains seen in each stock.
  • Schlumberger (SLB) slumped more than 6% after announcing its acquisition of Cameron International (CAM) in a deal worth $14.8 billion.
  • Express (EXPR) shares were on watch after a better-than-expected second quarter, while Abercrombie & Fitch (ANF) jumped nearly 20% after swinging to a surprise profit.

Statistics:

  • 2% surge in S&P 500 futures
  • 2% gain in Dow Jones Industrial Average futures
  • 2.1% jump in Nasdaq futures
  • 2% increase in U.S. durable goods orders
  • 2.2% jump in orders for core capital goods
  • 140 billion yuan ($21.80 billion) to be injected into China's financial system
  • 1.3% decline in China's stock market
  • 6% slump in Schlumberger after the acquisition announcement
  • 25 cents earned per share by Express (EXPR)
  • 9 cents above forecasts earned per share by Express (EXPR)
  • 11.3% jump in sales by Express (EXPR)
  • 20% jump in Abercrombie & Fitch (ANF) shares

Sources:

  • TheStreet.com
  • TheStreet.com (Must Read: 10 Big-Name Stocks That Are Already in Correction Territory)
  • Bloomberg
  • CNBC