Thursday's Market Minute: Futures Rise On Chinese Data

To continue a week where international factors have weighed heavily on domestic markets, U.S. stock futures edged higher Thursday morning following positive economic news out of China.

China’s trade data from July beat expectations, with higher exports and lower imports: dollar-denominated exports rose 3.3% from the same period last year, and imports fell by 5.6%, according to customs data. The overall trade surplus was $45.06B, compared to June’s surplus of $50.98b. In addition, China set its onshore currency at 7.0039 per U.S. dollar. Although the yuan is at its weakest level since April 2008, the overnight move was lower than the expected 7.0205 and eased some concerns.

The S&P, Nasdaq, and Dow E-mini futures all turned around at 10:00PM ET, and continued higher, while the Market Volatility Index sharply dropped from intraday highs around 23 to settle around its current 19-level.

One shouldn’t expect smooth sailing going into today’s trading session, however, as U.S./China trade continues to weigh on equities. One signal may be that Goldman Sachs Group Inc GS downgraded Caterpillar to a neutral rating from buy this morning and lowered its price target, citing forces in the countries’ construction equipment markets.

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