August 9, U.S. stock index futures ticked higher on Thursday, with the S&P 500 aiming at a fresh record, as the second-quarter earnings season winds down on a strong note.

Futures implied the benchmark index would open at 2,859.95, about 13 points away from the record, which it last hit in late January.

A strong earnings season has kept up the momentum in the markets, helping cushion major blows from trade-related issues.

Of the 440 companies in the S&P 500 that have reported so far, 78.6 percent have beaten analyst expectations, according to Thomson Reuters I/B/E/S.

Shares of U.S.-listed Chinese stocks were higher in premarket trading, tracking a rebound in Shanghai stocks.

JD.com (JD.O) rose 0.4 percent and Baidu (BIDU.O) 0.8 percent.

Among other movers, Century Link (CTL.N) jumped 4.4 percent after reporting quarterly results.

Twenty-First Century Fox (FOXA.O) climbed 0.2 percent after its quarterly profit and revenue topped estimates, helped by the popularity of superhero movie Deadpool 2.

Rite Aid (RAD.N) fell 10.9 percent and was the most heavily traded stock after the drug store chain and U.S. grocer Albertsons Cos ABS.N agreed to terminate their merger agreement.

Perrigo (PRGO.N) fell 8.3 percent after its board approved a plan to separate its Prescription Pharmaceuticals business and after the generic drugmaker reported quarterly results.

At 7:00 a.m. ET, Dow e-minis 1YMc1 were down 1 points, or -0 percent. S&P 500 e-minis ESc1 were up 1.75 points, or 0.06 percent and Nasdaq 100 e-minis NQc1 were up 4 points, or 0.05 percent.

Investors are also eyeing inflation numbers to gauge the impact of tariffs on pricing and for clues on the path of interest rate hikes.

A U.S. Labor Department report is expected to show producer price index for final demand rose 0.2 percent for July from 0.3 percent in June. The data is due at 8:30 a.m. ET.

Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil D'Silva

March 21, World shares were flat on Wednesday and the dollar eased off three-week highs as investors marked time before a likely hike in U.S. interest rates and awaited guidance on how many more to expect for this year.

Markets are on edge, not only because of the U.S. Federal Reserve meeting which should deliver the first rate rise of 2018, but also because of a selloff in U.S. tech shares, which has wiped almost $50 billion off the value of Facebook (FB.O) this week amid uproar over the alleged misuse of users data.

The Facebook losses have filtered through other tech shares in the United States and overseas, with shares in Twitter (TWTR.N) falling more than 10 percent on Tuesday .SPX.

The losses are likely to have hit investors hard, with Bank of America Merrill Lynchs monthly survey showing global funds heavily positioned in tech shares just before the rout began.

There are tensions between potential bad news and good news in the market. The bad news is the problem facing the tech sector, which has been the leading light of U.S. and Asian equity markets for over a year, said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

The good news is we must recall why the Fed is tightening policy. It's because of the underlying strength of the U.S. and global economy.

MSCI's all-country equity index flatlined MIWD00000PUS>, and is now 6 percent off record highs hit at the end of January, pressured by fears of a global trade war ignited by U.S. President Donald Trump and the possibility that the Fed could end up raising interest rates more than three times this year.

The Fed has increased borrowing costs five times since it began tightening policy in late 2015. Markets are pricing in three rises this year but some reckon policymakers could squeeze in a fourth, which might trigger a bond and equity selloff.

The 1800 GMT announcement will also be the first under new Fed chair Jerome Powell, analysts note.

We might have significant changes in communication compared with what we've seen under (previous chair Janet) Yellen, said Chris Scicluna, head of economic research at Daiwa Capital Markets.

The economic situation post tax cuts also justifies a significant shift upwards in the dot plot, he added, referring to fears the Fed's de facto policy forecast chart could signal four rate rises rather than three, due to the economic boost delivered by Trump's tax reforms.

Those expectations had sent the dollar to nearly three-week highs on Tuesday but it eased back a quarter percent against a basket of currencies .DXY on Wednesday, having lost almost half a percent this month.

The greenback's weakness it fell 10 percent last year  is at least partly down to U.S. capital seeking to invest overseas amid robust world growth. Milligan said that would continue unless trade skirmishes started impacting the world economy or U.S. growth accelerated further.

To get the dollar higher we will need combination of the Fed being more aggressive and signaling more changes for 2019, he added.

European shares edged down, despite a small tech index bounce off two-week lows .SX8P and equity futures signaled that Wall Street would likewise open a touch lower ESC1

Emerging equities fell 0.2 percent .MSCIEF

TRADE WAR FEARS

A major overhang for financial markets is the specter of a global trade war.

Trump is expected to unveil up to $60 billion in import duties on Chinese goods by Friday, after imposing tariffs on imported steel and aluminum earlier this month.

Investors are worried his actions could escalate into a full-blown trade war if China and other countries retaliate with similar or harsher measures, threatening global growth.

This week's meeting of finance ministers and central banks of the worlds 20 biggest economies failed to diffuse tensions, with the so-called G20 bloc saying only it recognised the need for more dialogue and actions.

The currencies of export-heavy nations such as the Australian, New Zealand and Canadian dollars were on the defensive after being knocked down to multi-month lows, while most emerging currencies were also marked lower.

The Aussie AUD=D4 languished near three-month troughs against the dollar of $0.7679 while the Kiwi NZD=D4 hit the lowest since early January. The Canadian dollar CAD=D4 held at $1.3029 after hitting $1.3124 on Monday, a low not seen since mid-2017.

The Mexican peso was up almost 1 percent against the dollar after reports the United States had dropped a demand that vehicles imported from Canada and Mexico should contain 50 percent U.S. content.

Fears of a trade war have also weighed on commodity prices, though tensions in the Middle East supported oil, lifting Brent futures LCOc1 almost half a percent.

Copper prices in Shanghai fell to their lowest in almost six month, their fourth straight day of losses SCFcv1.

Reporting by Sujata Rao; Additional reporting by Swati Pandey in Sydney and Dhara Ranasinghe in London; Editing by Catherine Evans

While everyone was preparing for New Year’s Eve, investors were patiently waiting to celebrate the Dow reaching 20,000. It seemed to be a probable goal by Christmas, but, the last week of the year kept investors waiting to release the balloons and pop the bubbly. The Dow cruised to a high of 19,974 on December 20 and then stalled. On Wednesday, the Dow dropped more than 100 points to close at 19,840. The downward trend continued throughout the week as the year closed out at 19,762.60.

Meanwhile, Consumer Confidence grew in December reaching 113.7 per the index, up from a revised 109.4 in November. This was the highest level since 2001. Experts attribute this rise to an improving U.S. economy and anticipation of a Trump presidency.

While Trump’s victory may have been positive for stocks and business, it has hurt Pending Home Sales. Before the election, mortgage rates were around 3.6 percent. Since the election, rates have surged to 4.4 percent. With rates moving almost a point, that is adding, roughly an extra $100 a month payment to a $200,000 mortgage. Combined with a shortage of inventory, the jump in interest rates have led to Pending Home Sales dropping 2.5 percent in November. However, with steady growth in the economy and positive job market prospects, many families have the renewed confidence to buy a house. In addition, home prices continue to rise. The S&P Case-Shiller Index rose .6 percent in October and is 5.1 percent higher for the year. Cities in the west, such as Seattle, led the increase while New York showed the biggest decline, down .2 percent from the previous month and only 1.7 percent higher for the year. Builders have increased production to meet the rising demand for housing which could in turn slow down rising prices.

The U.S. Trade Gap increased 5.5 percent in November, according to the Commerce Department. This was a higher increase than anticipated and the highest reading since 2008. Exports were up 1 percent while Imports were up 1.2 percent. In addition, Wholesale Inventories increased slightly, .9 percent, in November.

Jobless Claims fell 10,000 last week as many Americans move in and out of the workforce throughout the holiday season. The four-week average of initial claims was down slightly, 750 less applicants. However, Continuing Jobless Claims rose by 63,000 to 2.1 million for the week ending December 17.

To wrap up the light news week, Chicago PMI fell 3 points in December to 54.6. The Chicago PMI is a measure of Midwest economic activity. New orders, one of the components of the index, fell 6.7 percent to 56.5. A majority of business owners expect the Trump administration to be favorable for their business.

Looking forward to the New Year and the following reports being released:

Tuesday: ISM and Construction Spending

Wednesday: Motor Vehicle Sales

Thursday: Weekly Jobless Claims and ISM Non-manufacturing

Friday: NonFarm Payrolls, Unemployment Rate, Average Hourly Earnings, Foreign Trade Balance, and Factory Orders

Thank you for your business and many wishes for a happy and very prosperous new year!

 

Buying a home is one of the most exciting times in our lives. At Effective Mortgage Company we work very hard to make sure that you have a positive, fulfilling experience.

Here’s a simple, helpful walk-through of the entire home buying process from start to finish.

1. Decide on your new neighborhood.
   Spend some time researching the cities and neighborhoods that appeal to you. Be sure to think about your “must haves” – for example, do you want to be near a good elementary school, or shorten your daily commute? What about county, parish or township taxes?
2. Apply for home financing.
   This is an essential second step. Be sure to do this before you begin viewing homes – your Effective Mortgage Company, Loan Consultant can pre-qualify* you for financing so you can limit your search to affordable properties. You’ll also receive a Loan Estimate with details of your proposed financing.
3. Find the right property.
   Hiring a REALTOR® to assist you can save you time and money. In addition to sharing his or her knowledge of neighborhoods and available properties, a REALTOR® can help negotiate a better price with the seller.
4. Discuss your financing options with your Loan Consultant.
   Depending on your credit score, down payment, and other factors, you may qualify for more than one loan product. Your Loan Consultant will help you decide which one is the best fit.
5. Arrange for a home inspection.
   Even though Effective Mortgage Company will have your home professionally appraised, it’s always a good idea to hire a professional home inspector – especially if you’re buying an older home. If any major problems are found, you may be able to negotiate repairs or a repair allowance with the home’s seller.
6. Get ready to close on your home’s financing.
   Your Loan Consultant will present you with a Closing Disclosure. This document clearly states the true cost of your home’s financing, the funds owed at closing and any applicable conditions. You’ll also need to shop for homeowner’s insurance before closing.
7. The big day’s here!
   During your closing, you’ll sign your loan documents and present funds to cover your down payment and other costs. Depending on your state, you may receive a deed of trust that secures your mortgage note and other documents related to your purchase.

Now … all that’s left is to collect the keys to your home and celebrate!

*A pre-qualification is not an approval of credit and does not signify that underwriting requirements have been met.