Dow Futures Fall Amid COVID Concerns, Fading Stimulus Hopes

The Friday Market Minute

  • Global stocks slide as coronavirus flare-ups trigger new travel restrictions in Europe, and U.S. lawmakers leave town without a stimulus deal.
  • Britain issues quarantine orders on all travelers arriving from France and the Netherlands, pulling airline stocks lower around the region as global coronavirus caess top 21 million.
  • Senate lawmakers follow House Democrats in adjourning for the summer break, leaving little chance of a stimulus deal before September – and 30 million Americans without emergency unemployment benefits.
  • China retail sales post a surprise July decline, while industrial output extends its slump, raising questions about the pace of recovery in the world’s second-largest economy.
  • Oil prices slide after the IEA follows OPEC in trimming its 2020 demand outlook, which it pegs at 91.9 million barrels per day.
  • U.S. equity futures suggest a weaker open on Wall Street after weaker-than-expected July retail sales data.

U.S. equity futures traded lower Friday, while the dollar held steady and oil prices retreated, as investors avoided risk markets in the face of growing concern for a coronavirus resurgence and the fading chances of a stimulus agreement from lawmakers in Washington. 

July retail sales rose 1.2% from last year, the Commerce Department said, well shy of the 2.3% Street consensus forecast, and down from the upwardly-revised 8.4% recorded in June.  Stripping out volatile auto and gasoline sales puts the gain at 1.5% versus the 7.7% rebound over the previous month.

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