Damage from Harvey leads the DJIA news today, as the storm shuttered oil and natural gas production refineries and pushed gasoline futures to two-year highs. Dow Jones futures are flat - up just 20 points before trading - as the nation's fourth-largest city is submerged under flood water.
The Dow Jones news today will also focus on the results from the Federal Reserve's Jackson Hole summit last week, updates on Uber's new CEO, and major earnings reports...
Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
U.S. markets are flat as investors keep an eye on the impact of Hurricane Harvey. FEMA anticipates that 450,000 people who were affected by the storm will file for government assistance because of the damage and economic impact of the hurricane. Texas already mobilized the National Guard to assist with rescue efforts, and President Donald Trump is scheduled to visit Texas tomorrow.
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Traders are still digesting statements made last week from Fed Chair Janet Yellen and European Central Bank President Mario Draghi. Both central bank leaders spoke at the Fed's symposium on monetary policy in Jackson Hole, Wyo., last week. Yellen argued that Congress should not strip financial regulations imposed in the wake of the financial crisis. She argued that these laws have made the U.S. financial system "substantially safer" following the crisis.
The storm may dominate the headlines, but the major business shakeup was happening in the offices of ride-sharing giant Uber Technologies Inc. Over the weekend, the company announced that its new CEO will be Dara Khosrowshahi, the current head of Expedia Inc. (Nasdaq: EXPE). The ride-sharing giant has been seeking a CEO since the resignation of founder Travis Kalanick in June after an investigation into the culture of the company. Khosrowshahi has headed Expedia since it was spun out of InterActiveCorp. (NYSE: IAC) in 2005.
On the global front, we'll be watching for updates to the United Kingdom's plans to depart the European Union. Both Britain and the EU will engage in their third round of discussions over the breakup. So far, there has been little progress on major issues surrounding the divorce. Major sources of debate include the future border of Ireland, Britain's current debts to the economic bloc, and the rights of EU citizens already living in Britain.
Crude oil prices were mixed despite news of Hurricane Harvey's impact on the U.S. petroleum industry. The storm has paralyzed much of the Gulf Coast refinery network and affected export terminals responsible for energy and agricultural exports. Meanwhile, gasoline futures are up 5% to hit a two-year high as markets continue to assess the broader impact on the energy supply chain. About 15% of the U.S. refinery network has been knocked out of service, according to a report this morning by The Wall Street Journal. The WTI crude oil price today fell 0.1%. Brent crude added 0.1%.
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Shares of Gilead Sciences Inc. (Nasdaq: GILD) added 0.6% after the biotech company announced plans to purchase Kite Pharma Inc. (Nasdaq: KITE) for $11 billion. The deal will bolster Gilead's portfolio of cancer-fighting drugs and personalized treatment. The all-cash deal will likely close later this year.
In other deal news, Reuters reports that Western Digital Corp. (NYSE: WDC) is close to finalizing a deal to purchase the semiconductor business of Japanese tech giant Toshiba. The news organizations reported that WDC's CEO Stephen Milligan is in Tokyo to complete a deal that has been held up for several months.
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Shares of General Electric Co. (NYSE: GE) are on the rise in premarket hours after the company announced plans to scale back the costs of its new industrial software business. This is one of many initiatives from first-year CEO John Flannery, who is trying to solve existing problems in its software business that have included delays and technical problems.
It will be another busy week of earnings reports for the week of Aug. 28. While Monday's calendar is a bit light, investors will be looking for earnings updates on Tuesday from Best Buy Corp. (NYSE: BBY) and Infosys Ltd. (NYSE ADR: INFY). Look for more earnings reports from Prospect Capital Corp. (Nasdaq: PSEC), PAREXEL International Corp. (Nasdaq: PRXL), Standex International Corp. (NYSE: SXI), and Exa Corp. (NYSE: EXA).
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.