US stocks rose yesterday after the impressive second quarter results from companies. The Dow rose by almost 200 points while the Nasdaq rose by 50 points. Today, the earning season will continue as more companies release their earnings. Some of the companies that will release their earnings today are Boeing, Caterpillar, AT&T, Anthem, Boston Scientific, Dassault, Northrop Grumman, and T.Rowe Price among others.
Today, Special Counsel Robert Mueller will be testifying before congress. Mueller was the special counsel who investigated the Trump campaign and whether it colluded with Russia. He also investigated whether Trump obstructed justice by firing James Comey, the former FBI Director. While the testimony is widely expected, most people believe that nothing of value will come out of it. This is because Mueller is not expected to say something that was not in the 448-page report that he released four months ago.
In New Zealand, the country released trade numbers for the month of June. The data showed that exports rose by $5.0 billion, which was lower than the expected increase of $5.29 billion. In May, exports had risen by more than $5.74 billion. In the same month, imports rose by $4.65 billion, which was lower than the expected $5.20 billion and lower than the previous $4.57 billion. The decline in imports and exports led to an increase in the trade surplus, which more than doubled from $175 million to $365 million. This is a good example of why the trade surplus is not a good measure of the health of the economy.
Markit will release the PMI data from a number of countries today. Earlier on, the company released the manufacturing and services PMI from Australia and Japan. Later on, it will release the PMI data from the likes of Germany, France, European Union, and United States. In the EU, the manufacturing PMI is expected to have remained unchanged at 47.6. In Germany, it is expected to increase slightly from 45.0 to 45.1. In the United States, the preliminary manufacturing PMI is expected to have remained unchanged at 50.9.
Other than the PMI, investors will receive the new home sales data from the US. The market expects the new home sales data to have risen by 659k in June. This was higher than the previous 626k. Yesterday, data showed that the existing home sales dropped by more than 1.7%. This was much lower than the previous gain of 2.9% and the expected decline of -0.2%.
The Energy Information Administration (EIA) will release the crude oil inventory data. Data from the organization are expected to show that the crude oil inventories declined by 4 million barres in the past one week. In the previous week, the inventories declined by more than 3.1 million barrels. In the other week, they dropped by 10 million barrels. Yesterday, data from the American Petroleum Institute (API) showed that inventories dropped by more than 10 million barrels. These declines are usually experienced during the summer driving season.