US OPEN: U.S. indices estimate next rate hike

• US stock market starts today's trading flat

• The market estimates the size of the next rate hike

• 10-year Treasury yields fall 1.7%

Today's trading session in the US markets started relatively flat. The market treated yesterday's Fed Minutes dovishly, which lowered the chances of a 75 basis point hike at the September FOMC meeting. In addition to the Unemployment Claims and Philly FED data, investors will also learn about the report on secondary market home sales. 

Today's data: 

Jobless claims fall at 250,000 with the expectation of 264,000 and with the previous reading of 262,000.

Continuing claims rise less than expected to 1.437 million from 1.428 million with the expectation of 1.455 million 

The Philly Fed index falls at 6.2 points with the previous reading of -12.3 and with the expectation of 5 points. 

Of course, both readings are not crucial from the point of view of the economy, although they show that the situation is not getting worse, and is even improving! Although the data is favorable for a larger rate hike by the Fed, the money market is pointing to a lower chance of a more than 50-point hike. 

The money market currently gives a nearly 68% chance of a 50 bps hike at the September FOMC meeting. Yesterday, before the Minutes, it was close to a 50% chance. Source: Bloomberg

Wall Street index quotes. Source: Bloomberg 

Compiled charts of the US100 and VIX index on the D1 interval. The benchmark of technology companies starts today's session with moderate declines. The VIX fear index is gaining nearly 0.10% today. Source: xStation 5

News:

• Cisco Systems (CSCO.US) shares are gaining nearly 6% at the open following the release of strong quarterly results and the raising of forecasts for the coming quarter (thanks to stabilizing supply chain issues).

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Cisco Systems results and forecasts. Source: Bloomberg

• Shares of Bed Bath & Beyond (BBBY.US) are losing nearly 15% at the opening of today's session after Ryan Cohen reported his intention to sell 7.78 million shares of the company. 

• The shares of oil companies are gaining at the start of today's session on the back of rising oil prices (via weak inventory data and weak supply outlook). 

• Estee Lauder (EL.US) shares lose early in the session as covid lockdowns in China lowered forecasts for the full year. 

• Shares of Kohl's Corp (KSS.US) are losing nearly 7% early in the session due to lowered full-year forecasts. 

News from companies in the S&P500 (US500) index. Source: Bloomberg