Opening Comment — Thursday, August 27, 2026
DJIA: 53,463.88, down 113.52
S&P 500: 7,675.70, down 1.58
NASDAQ: 26,130.20, down 21.10
Stocks higher after chip company’s earnings
Stock futures are mostly higher Thursday morning as markets digest a major chip company’s earnings. Meanwhile, investors are awaiting today’s fresh unemployment claims data, July advance goods trade balance, and preliminary July reading of wholesale inventories data. Markets will also be watching for news out of the Federal Reserve’s (Fed’s) annual Jackson Hole Economic Symposium, beginning today. As of 7:24 AM ET, the Dow is little changed, while the S&P 500 is up 0.5%. The Nasdaq 100 is increasing 1.0% relative to fair value on the GLOBEX.
U.S. equities were mostly lower on Wednesday as personal income and personal spending in July rose 0.4% and 0.2% month-over-month (MOM), respectively, both exceeding expectations. Meanwhile, the July Personal Consumption Expenditures (PCE) Price Index increased 0.2% MOM and 3.7% year-over-year (YOY), slightly above forecasts, while the core PCE Price Index rose 0.2% MOM and 3.3% YOY, in line with expectations. Separately, the second estimate of second-quarter gross domestic product (GDP) growth was unchanged at an annualized 1.5%, matching forecasts, while personal consumption growth was revised higher to 3.4% from 3.2%. In addition, the preliminary reading of July durable goods orders increased 1.1% MOM. The yield on the 10-year note was up two basis points (0.02%) to 4.65%, while the 30-year bond yield was unchanged at 5.17%. The yield on the two-year note increased four basis points (0.04%) to 4.21%. The Dow was down 0.2%, while the tech-heavy Nasdaq Composite fell 0.1%. The S&P 500 was little changed with four of 11 sectors finishing in positive territory. The Industrials sector was the top performer, rising 1.1%, while the Health Care sector was the bottom performer, falling 1.0%.
On the data front, the advance goods trade balance for July is expected to show a deficit of $100.5 billion, compared with the prior month’s revised deficit of $101.4 billion. The preliminary July reading of wholesale inventories is expected to show an increase of 0.2% MOM, matching the prior month's gain, while retail inventories are forecasted to have increased 0.2% MOM, following the prior month's revised 0.2% decline. Initial jobless claims for the week ending August 22 are expected to come in at 208,000, slightly above the prior week’s 206,000, while continuing claims for the week ending August 15 are expected to decline to 1.792 million from the prior week’s 1.799 million. The Kansas City Fed’s August composite index on manufacturing activity is expected to improve to 10, up from the prior month’s reading of 9.
Across the pond, European stocks are mostly lower in mid-day trading as Germany’s consumer confidence improved and France’s July Producer Price Index rose 1.1% MOM and 3.4% YOY.
Overnight in Asia, stocks were mixed as the Bank of Korea left its base rate unchanged at 3.00%, in line with expectations. Meanwhile, China’s industrial profits rose 11.2% YOY in July. In Australia, household spending for July rose 1.1% MOM and 7.0% YOY, exceeding expectations and accelerating from the prior month.
In FOREX trading, the U.S. dollar is slightly higher ahead of today’s U.S. fresh unemployment claims data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.1% lower at $82.16/barrel following a smaller-than-expected increase in U.S. oil inventories.
In the metals complex, gold is 0.1% lower at $4,588.41/ounce following a strengthening U.S. dollar.