Happy Monday! Today is August 17th and stock futures rose following lasts week’s gains. Chinese stocks surge to a 2-year high after China’s central bank announces $101 billion of fresh stimulus and a new saliva-based covid-19 test could be a game changer. American shopping is back to pre-pandemic levels, and homebuilder sentiment jumps to record highs. Democrats call for the US Postal Chief to testify at an “urgent” congress hearing.
U.S. stock futures rose slightly early Monday after Wall Street logged its third consecutive weekly gain, but fell short of breaking the all-time high set on Feb. 19. Dow Jones Industrial Average futures rose about 70 points. S&P 500 and Nasdaq 100 futures popped 0.37% and nearly 0.75%, respectively.
Chinese stocks surge to a 2-year high after China’s central bank announces $101 billion of fresh stimulus
China’s Shanghai Composite rose to a 2-year high on Monday after the country’s central announced $101 billion of fresh stimulus. The index moved up 2.3% to 3438.80. The last time it reached that level was in January 2018. Chinese stocks may have also been supported by a delay in a review of the Phase One trade deal between US and China, that was initially organized for Saturday.
After months of frustration over testing shortages and delays, a new saliva test could give Americans a fast and inexpensive option to learn if they have Covid-19. Researchers from the Yale School of Public Health created the SalivaDirect test, which received emergency use authorization from the Food and Drug Administration on Saturday.
Millions of Americans remain unemployed during the coronavirus pandemic and many are struggling to pay their bills. But despite devastation in other parts of the US economy, American consumerism has staged a rapid comeback. US retail sales rose 1.2% in July from the previous month, the Commerce Department reported Friday.
Builder confidence in the newly built, single-family home market jumped six points to 78 in August on the National Association of Home Builders/Wells Fargo Housing Market Index. Anything above 50 is considered positive sentiment. The cost of lumber is soaring not only because of increased demand but because mills shut down in April and May and did not expect to see the kind of strong demand they’re seeing now.
The House Oversight Committee will have an emergency hearing on Aug. 24 to address mail delivery delays and fears that the Trump administration is interfering with the U.S. Postal Service in order to impact voting in the November presidential election. House Democrats on Sunday called on Postmaster General Louis DeJoy and Postal Service board of governors Chairman Robert M. Duncan to testify at the upcoming hearing. The Postal Service is removing hundreds of mail-processing machines across the country and has warned 46 states that it may not be able to process all mail-in ballots in time to be counted for the election, likely disqualifying votes.