Morning Bid: Ebbing jobs fear sees calmer market waters

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Futures Market,Stock Volatility,Global Markets

The first reality check on July's jarring U.S. employment report suggests rising recession fears were overstated, allowing stocks to claw back nearly all the...

Signage for a job fair is seen on 5th Avenue after the release of the jobs report in Manhattan, New York CityThe first reality check on July's jarring U.S. employment report suggests rising recession fears were overstated, allowing stocks to claw back nearly all the week's withering losses and volatility gauges to subside to more normal levels.

With a thin diary on Friday and next week's U.S. July inflation report now on the radar, futures market have turned more equivocal about whether next month's expected Federal Reserve rate cut will be a quarter or a half point. "All the elements of inflation seem to be settling down," said Richmond Fed boss Thomas Barkin. "I'm relatively hopeful based on the conversations I'm having that that's going to continue."Despite some wild single stock moves through the bumpy earnings season, LSEG data shows annual profit growth for the S&P500 tracking 13.8% for the second quarter - two points higher that pre-season estimates.

But to the extent that Chinese producer prices matter more for inflation around the world, the continued annual deflation in factory gate prices may be more significant. And yet opinion polls and betting markets suggest he may not get the chance to act that out after November's election. Walt Disney, which reclaimed the top of the summer box office with Pixar animation's "Inside Out 2" and Marvel's raunchy "Deadpool & Wolverine," is set to announce details of coming films at its D23 fan convention on Friday. "It's never too late to have that big Hollywood comeback," said Paul Dergarabedian, senior media analyst for Comscore.

 

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