NASDAQ futures are down 0.8% this morning, outpacing the 0.1% decline by Dow Futures to the downside. Sentiment appears to be getting impacted by disappointing news from the technology sector. Although Google parent Alphabet and chipmaker Advanced Micro Devices (AMD) both beat expectations, overall cloud revenues at Alphabet and data centre revenues at AMD were disappointing. This news has sent shares of Alphabet down 7.1% and AMD down 9.6% in premarket trading.
We continue to see lingering aftereffects of Monday’s trade turmoil. The Canadian Dollar is up 0.3% today, but the Mexican Peso is down 0.6%. Gold is up 0.6% approaching $2,900/oz, while Bitcoin is down 0.5% trading below $100,000, indicating a shift in capital flow from risk markets to defensive havens quietly continues. In overseas equity action, the Hang Seng fell 0.9% and Shanghai lost 0.6% as US-China tariff battles continue. In Europe today, the Dax is flat while the FTSE is up 0.2%. After the close today, Ford Motor reports earnings that may shed more light on the potential impact of tariffs on the auto sector.
US ADP private sector payrolls beat expectations (183K vs street 150K), a sign of continued US economic strength. Service PMI reports were slightly better than expected from Asia Pacific countries and slightly worse than expected in Europe but most remained above 50 in expansion territory. US ISM Service PMI (street 54.3) is due at 10:00 am EST.