TSX slightly higher on employment data
Investing.com - U.S. stock futures were slightly higher, with investors eyeing steadying bond markets and looking ahead to the release of key U.S. economic data later in the week. The Trump administration files an appeal with the Supreme Court to hear its case to keep in place emergency powers which allow the president to impose a raft of import tariffs. Elsewhere, a Federal Reserve report shows little change in the economy in recent weeks, although firms remained worried over sticky inflation. Figma also delivers its first earnings report since its blockbuster initial public offering earlier this year.
1. Futures inch up
U.S. stock futures hovered just above the flatline on Thursday, as global bond markets stabilized after a bout of selling earlier in the week.
By 03:55 ET (07:55 GMT), the S&P 500 futures contract had added 8 points, or 0.1%, Nasdaq 100 futures had risen by 36 points, or 0.2%, and Dow futures were broadly unchanged.
Bond markets were calmed by comments from several Federal Reserve officials, including Governor Christopher Waller, which further bolstered wagers that the central bank will resume slashing interest rates at its next meeting later this month.
Meanwhile, an auction of longer-dated Japanese government debt saw tepid demand, but takeup was still enough to prevent fresh anxiety from gripping bond markets. The country’s 30-year bond yield had earlier spiked to an all-time peak. Yields tend to move inversely to prices.
On Wednesday, the benchmark S&P 500 and Nasdaq Composite both ended higher, boosted by a jump in shares in Alphabet following a court ruling which spared the Google owner from having to break up its sweeping operations.
A judge on Tuesday allowed Google to keep control of its popular Chrome browser and Android operating system, but barred it from securing some exclusive contracts. The decision also spared a lucrative payments deal between Google and Apple, spurring on a rally in the iPhone-maker’s shares.
2. Trump asks for Supreme Court review of tariffs
The Trump administration has asked the Supreme Court to hear its case for preserving the president’s trade tariffs, as the White House hopes to overturn a lower court ruling that most of the levies were illegal.
Imposing elevated duties on a range of nations has become a central pillar of President Donald Trump’s economic policy agenda since his return to power in January. He has said the moves are justified under a 1977 law meant for emergency powers, adding that they will help reshore American manufacturing jobs and correct trade imbalances he perceives to be damaging.
However, a federal appeals court ruled late last month that Trump had surpassed the boundaries of his authority by invoking the law, which is known as the International Emergency Economic Powers Act, or IEEPA.
In a written filing, Solicitor General D. John Sauer said the "stakes in this case could not be higher" and urged the high court to take up the matter by September 10 and hold arguments in November. The court’s new term is due to begin in October.
Trump, meanwhile, said he was confident that the Supreme Court would side with the administration, warning that not doing so could cause the U.S. economy to "suffer so greatly." He added that framework trade agreements recently notched with a range of trading partners might have to be unwound if the White House loses the case.
3. Fed’s Beige Book
The economy was mostly little changed over the past several weeks through late August, even as firms braced for further inflationary pressures, according to the Federal Reserve’s "Beige Book" report released on Wednesday.
"Most of the twelve Federal Reserve Districts reported little or no change in economic activity since the prior Beige Book period," the Fed said in its Beige Book, which is based on anecdotal information collected by the Fed’s 12 regional banks through August 25.
Across the districts, signs that consumers are becoming wary of spending increased because, for "many households, wages were failing to keep up with rising prices," the report noted, flagging "economic uncertainty and tariffs as negative factors."
In the labor market, eleven districts described little or no net change in overall employment levels. But there were potential indications of soft patches in the jobs picture, with the report suggesting that employers are becoming more hesitant to hire new workers.
"The Beige Book [...] described an economy facing ongoing stagflationary forces, with cooling growth and softening labor momentum alongside continued inflation pressure," analysts at Vital Knowledge said in a note.
4. Figma shares slump after results
Shares in Figma (NYSE:FIG) slumped by more than 15% in extended hours trading after the design software group’s first quarterly earnings report since its blowout market debut underwhelmed expectations among tech and artificial intelligence investors.
Figma’s stock price spiked after its initial public offering on July 31, giving the firm a value of roughly $50 billion and possibly paving the way for other high-profile tech flotations. But shares have since retreated, spurred in part by several Wall Street analysts opening their coverage of Figma in August with "neutral" ratings, citing worries around the company’s lofty valuation and intense competition.
Serving customers like online travel giant Airbnb and streaming video titan Netflix, Figma offers collaborative design software that enterprises can use to help build out websites, apps or other digital products.
Second-quarter revenue rose by 41% to $249.6 million, compared to etimates of $248.8 million, according to LSEG data cited by Reuters. Adjusted earnings per share came in at $0.09, versus forecasts of $0.08. Full-year revenue is also tipped to be between $1.02 billion and $1.03 billion. Analysts had seen it at $1.01 billion.
Yet analysts quoted by Reuters said that, despite the slight beat, Figma’s valuation means that even solid numbers may disappoint certain investors.
5. Gold slips from record high
Gold prices fell, facing some profit-taking after the yellow metal touched record highs, as the dollar steadied ahead of more cues on the U.S. labor market and interest rate cuts.
Bullion hit a series of all-time peaks this week, amid growing conviction that the Fed will cut interest rates at its Sept. 16-17 gathering.
Safe haven demand for gold was also supported by fears over stretched government debt levels in the developed world.
Spot gold fell 0.5% to $3,540.12/oz, while gold futures for December fell 1.0% to $3,598.20/oz by 03:49 ET.