Stock futures fall after third consecutive losing day for the S&P 500

Jonathan Krinsky, chief market technical officer at BTIG, said the market is “still in a tug of war between economic data and what the Fed might do.”

Kreinsky noted that recent economic data has been weaker than expected “causing an attempt to buy bonds and the perception that Powell might be ‘less hawkish’ at Jackson Hole.” “That may be enough to maintain stock supply…but it is not necessarily a ‘bullish’ medium-term scenario if environmental data continues to weaken.”

– Fred Imbert

European markets Silent Wednesday with hard-line new comments from A US Federal Reserve The policy maker made investors hesitant.

pan europe Stokes 600 The index was flat in early trade, with communications down 0.5% while household goods rose 0.2%.

– Elliot Smith

Morgan Stanley says tech supply chains are about to see growth in the next big thing: the features of smart technology — from electric car batteries to chips and self-driving technology.

The investment bank has named its top stock picks that are set to benefit from the trend.

Professional subscribers can read the story here.

– Weezin Tan

His biggest concern is that markets are underestimating how high or how long inflation will last, says Neil Kashkari, president of the Minneapolis Federal Reserve, adding that the Fed may need to be more aggressive than expected.

Commenting on the market, he said, commenting on the market: “The big fear I have in my mind is whether we are wrong and the markets are wrong, and that this inflation is much more implied at a much higher level than we or the markets appreciate.” Expectations of inflation returning to 2% over the next two years.

“Then we will have to be more aggressive than I expect, and possibly longer, to bring inflation down again,” he said, speaking at an event at the University of Pennsylvania.

Kashkari also cited supply-side shocks that have led to “half to two-thirds” of high inflation in the country.

“The more help we get from the supply side, the less the Fed has to do, the better we are to avoid a hard landing,” he said. But, he added, there is some evidence that supply chains are starting to normalize.

Kashkari is already the most hawkish of the US central bank’s 19 policymakers, and he expects the Fed to need to raise its policy rate – now at its target range of 2.25% to 2.5% – another full two percentage points by the end of next year.

– Jie Lee

The energy sector has been a big winner in the volatile stock market this year.

But one stock still stands out for its “strongest balance sheet,” according to Citi. It also delivered a batch of second-quarter earnings that easily beat its listed major peers.

Professional subscribers can Read the story here.

– Xavier Ong

Many are expecting a hawkish speech from Federal Reserve officials later this week, which could lead to a massive sell-off in risky assets. Some fear continued and violent central bank tightening could push a sluggish economy into recession.

“I fully expect Federal Reserve Chairman Jay Powell and other Fed officials to remain hawkish,” Kristina Huber, chief global market strategist at Invesco, said in an email. “Aggressive rhetoric is very likely to cause stocks to drop globally in the near term, as markets are on eggshells, so asset owners must be prepared for short-term volatility.”

– Yun Lee

shares Nordstrom It fell more than 13% in extended trading after the company It lowered its full-year financial forecast. Nordstrom said it was being challenged by an overstocking as well as a slowdown in demand.

“Customer traffic and demand slowed significantly beginning in late June, mostly at Nordstrom Rack,” CEO Eric Nordstrom said in a press release.

However, the company reported fiscal second-quarter earnings and sales ahead of analyst estimates.

– Yun Lee