Opening Comment — Thursday, August 07, 2025
DJIA: 44,193.12, up 81.38
S&P 500: 6,345.06, up 45.87
NASDAQ: 21,169.42, up 252.87
Stocks higher following tariff developments
Stock futures are higher Thursday morning following broad exemptions being included in the announcement of a 100% tariff on foreign-made chips. Meanwhile, many tariffs went into effect overnight as several countries continue to negotiate with the U.S. As of 7:15 AM ET, the Dow is rising 0.5%, while the S&P 500 is up 0.6%. The Nasdaq 100 is increasing 0.8% relative to fair value on the GLOBEX.
U.S. equities were higher on Wednesday as President Donald Trump imposed an additional 25% duty, on top of the previous 25%, on Indian imports over Russian oil ties, with the increased rate to start in three weeks. The Dow was up 0.2%, while the tech-heavy Nasdaq Composite rose 1.2%. The S&P 500 increased 0.7% with six of 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 2.5%, while the Health Care sector was the bottom performer, falling 1.5%.
On the data front, the preliminary reading of second-quarter nonfarm productivity is expected to show an increase of 2.0% quarter-over-quarter, versus the prior quarter’s decrease of 1.5%, while unit labor costs are forecasted to have increased at an annualized 1.5% pace, down from the prior quarter’s 6.6%. Initial jobless claims for the week ending August 2 are expected to come in at 222,000, higher than the prior week’s 218,000, while continuing claims are expected to come in at 1.950 million for the week ending July 26, up from the prior week’s 1.946 million. The finalized June reading of wholesale inventories is expected to show an increase of 0.2% month-over-month (MOM), similar to the prior reading, while June’s wholesale trade sales is expected to come in at 0.1% MOM versus the prior month’s decrease of 0.3%. The Federal Reserve Bank of New York will release their July Survey of Consumer Expectations, including a measure of inflation expectations. Consumer credit is expected to have expanded by $7.50 billion in June, higher than the prior month’s increase of $5.10 billion.
Across the pond, European stocks are mostly higher in mid-day trading as the Bank of England reduced their policy rate by 25 basis points (0.25%) to 4.00% in a five-to-four vote. Germany’s industrial production for June registered a greater-than-expected decline of 1.9% MOM and 3.6% year-over-year. Meanwhile, the country’s trade surplus narrowed in June, following both imports and exports rising more than projected. France’s trade deficit narrowed slightly in June.
Overnight in Asia, stocks were mostly higher as China’s trade surplus narrowed more than expected in July as imports unexpectedly rose and despite exports registering a stronger-than-anticipated increase. Australia’s trade surplus widened more-than-expected in June, as exports rose and imports declined. Meanwhile, Japan’s preliminary June Leading Index rose slightly more than expected.
In FOREX trading, the dollar is little changed following the recent tariff news.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.7% higher at $64.80/barrel following an unexpected decline in crude oil inventories.
In the metals complex, gold is 0.4% higher at $3,392.60/ounce.