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T3's Take 3: US Markets Flatten Out While China Goes on Vacation


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live

T3 Live cordially invites you to our first annual Finance Festival, scheduled for November 6-8 in sunny Miami, Florida.

And we are proud to announce that derivatives trading guru and former hedge fund manager John Succo will join our panel on the Fed.

John, currently a professor at Indiana University, was one of the most popular contributors in Minyanville history, and is considered a legend for his sharp market analysis during the financial crisis.

John will be joined by a truly impressive team of Wall Street experts, including Barry Ritholz, Nicole Sherrod, Evan Lazarus, Doug Robertson, Josh Brown, JC Parets, and many more.

Read about our expanded lineup here.

European Central Bank Rate Decision

The ECB released its rate decision today. As expected, interest rates remained the same.

A subsequent press conference was held in Frankfurt where Mario Draghi stated that the issue share limit in the public sector purchase program will increase to 33% from 25%.

The increase drove hope that the central bank may increase its quantitative easing program soon. The ECB also downgraded their inflation expectations, saying they may see negative inflation in coming months.

The bank's euro-zone GDP forecast for 2015-2017 were also cut as well.

World Equity Markets

Asian markets saw some gains as Chinese markets were closed for holidays. In Japan, economic data showed the country's service sector had expanded by its fastest pace in two years. The Nikkei gained 0.45. Taiwan's TAIEX rallied 0.78, and Korea's Kopsi finished up 0.0%.

With no Chinese volatility to get in the way, European markets opened higher. They were then boosted by the ECB decision and Draghi's address. Euro-zone economic data showed that business activity hit a four-year high. The German DAX finished up 2.7%, while the French CAC rallied 2.2%.

US markets also opened higher and bounced around before a roughly flat finish with the S&P 500 up 0.1%.

Traders appeared to be unsure ahad of tomorrow's NFP report, which could impact Fed interest rate policy.

According to data gathered by Bloomberg, the consensus of a rate hike happening this month is 28%, down from 38% a week ago.

Joy Global

Joy Global (JOY), the world's largest manufacturer of underground mining equipment, released its Q2 earnings report. The company missed EPS estimates by seven cents, reporting $0.54. Revenue beat slightly at $798 million vs. the expected $792 million. During the conference call, the company cut its forecast for 2015 earnings and revenue citing the downturn in global commodities. Adjusted profit in the fiscal year through October is expected to be $1.80, while the analyst consensus is $2.42. Revenue should be about $3.1 billion, lower than the $3.28 billion analyst estimate.

After the release, shares fell as much as 20%, the largest decline in the S&P 500 today.

Friday's Financial Outlook

US economic data for tomorrow will include the highly anticipated August Jobs report and Baker Hughes Rig Count.

Overseas economic data will include Swiss CPI, Markit Germany construction PMI, and the Canadian jobs report for August.

There are no major earnings announcements scheduled for tomorrow.
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