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T3's Take 3: Markets Catch a Break Ahead of the Weekend


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

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

Scott Redler will be speaking about trading and technical analysis, and he'll 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.

We've even booked a good old-fashioned bull vs. bear debate between Jeff Saut, Chief Investment Officer of Raymond James, and John Mauldin, founder of Mauldin Economics.

Read about it here.

US Econic Data

The Bureau of Labor Statistics released its report on the Producer Price Index (PPI)) for July. It beat expectations on all accounts. Final demand grew a healthy 0.2% month over month, something the Fed will take into consideration as it decides whether or not to raise rates.

The University of Michigan also released its sentiment numbers. Overall sentiment came in lower than expected at 92.9  vs. the 93.5 consensus. This is a slight decline from last month's 93.1 reading.

World Equity Markets

US markets markets reacted positively to today's data, ending a choppy week of trading on a positive note. The S&P 500 rallied 0.4%.

The closely-watched biotech sector underperformed today as the iShares NASDAQ Biotechnology (IBB), which has led the bull market, fell 0.6%. The S&P Biotech ETF (XBI) closed down 1.5% today.

European markets finished down today. A small gain in the Chinese yuan helped instill confidence in investors that the currency had stabilized, but the gains were short-lived after lackluster euro-zone GDP data. Euro-zone GDP slowed to 0.3% during the second quarter, missing expectations. German and French growth also missed estimates. The German DAX finished down 0.3% and the French CAC lost 0.6%.

Asian stocks were mixed. Japan's Nikkei declined 0.3% while the Shanghai Composite saw an increase of 0.3%.

Etsy's Irish Havens

Etsy  (ETSY) has changed the classification of its Irish subsidiary to an unlimited liability company. The change in registration means that the company no longer needs to publicly disclose basic financial information about the unit. Companies such a Google (GOOGL)have used the same tactic in the past into to hide how company profits are sent to tax-havens such as Bermuda.

Last month, the company informed users that users outside of the Americas will be entering a terms of use agreement with the Etsy Ireland, rather the parent company. The move drew criticism from some as one of the company's core tenants is transparency. However the company is listed as a certified B corporation, meaning that company was approved by the not-for-profit B Lab showing that it has benefits to the community, environment, employees, consumers and suppliers. Unlike regular public companies, Etsy doesn't seek to inch out every penny it can.

Etsy shares finished roughly flat on the day.

Monday's Financial Outlook

US economic data for tomorrow will include US empire manufacturing, NAHB housing market index, and long-term TIC flows.

Overseas economic data will include Japanese GDP on Sunday and Swiss retail sales, Chinese property prices on Monday.

Estee Lauder (EL) will report earnings before the open on Monday. Agilent (A), China Lodging (HTHT), and MasTec (MTZ) will report earnings after the close.

No positions in stocks mentioned.
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