Events to be Followed in the Markets on August 25

Events to be Followed in the Markets on August 25

The US and China made calls over the phone, and then there was an unorthodox kindness. Exxon (NYSE: XOM) exited the Dow Jones Industrial Average index, along with Mobil Pfizer and Raytheon. Stock markets will open higher before housing price and consumer data. Germany's economic recovery continues and the Gulf of Mexico is struggling with Hurricane Laura. Things to know in the markets on Tuesday, August 25:

1.An Era Endures as DJIA (Dow Jones) Re-arranges

As the turning point in the rebalancing of the Dow Jones Industrial Average occurs, Exxon Mobil was removed from the world's most famous stock index. The firm, a descendant of John D. Rockefeller's Standard Oil, has become a representative of the private oil and gas industry and has been significant in an industrialized economy since its inception. Other companies launched at DJIA were advocacy group Raytheon and pharmaceutical giant Pfizer. They were replaced by software group Salesforce, smaller than biotech group Pfizer, and Amgen and Honeywell.

2. US-China Are Polite After Rescheduled Trade Talks

Two weeks after President Donald Trump canceled the scheduled meeting to discuss the January deal, the United States and China negotiated by phone. Following the meeting between US Trade Representative Robert Lighthizer and Chinese Liu He, the statement "both sides are making progress" became the official statement. This compromised the fact that China made less than half the level promised in the deal in January, due to the epidemic that devastated the demand for oil and gas imports in the first half of the year.

3.The Stock Markets Are Opening High

US stock markets will open higher on Wednesday. While continuing to see the support of signals that the coronavirus epidemic has subsided in the USA, a temporary decrease in hostility between the USA and China also supported. The Dow 30 index rose 176 points, and the S&P 500 index, which closed above 3,400 on Monday for the first time, rose 0.4%. Nasdaq 100 gains 0.2%. Salesforce will publish its quarterly report after closing and DJIA will have the opportunity to showcase its performance. Retailers struggling with Intuit will include Nordstrom and Urban Outfitters on Salesforce. Medtronic, Best Buy and Hormel Foods will report before the market opens.

4. Germany's Recovery Process Accelerates

Data flow is a little more intense today. Housing price data will be shared at 14:00, and new housing sales and the Conference Board consumer confidence index at 15:00. The latest research revision of the Red Book will be published today. According to the update in Germany's second quarter GDP figures, the economy shrank only 9.7% instead of the 10.1% contraction originally predicted. Private consumption and net exports accounted for much of the decline. In addition, IFO business confidence index recovered above expectations and reached 92.6.

5. Laura

Although crude oil prices continued to see good support with the support of both trade talks and German data, the attention was on two tropical storms heading towards the Gulf of Mexico. The National Hurricane Center (NHC) dropped Marco from a tropical storm to a tropical depression level. This means its ability to deal damage will be limited. But the NHC has also taken Tropical Storm Laura to Hurricane level. It is thought to arrive in the US continent by Wednesday evening. Operations that produced more than 1 million barrels of oil per day were closed due to the storms, but the biggest contraction signal was in gasoline futures, which peaked at $ 1.3865 since the unease in March. WTI rose 0.2% to $ 42.69, while Brent rose 0.6% to $ 45.91.