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10 things you need to know before the opening bell

Aug 26, 2016, 16:07 IST

North Korean leader Kim Jong Un is pictured during a test-fire of strategic submarine-launched ballistic missile in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang.Reuters/KCNA KCNA

Here is what you need to know.

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Janet Yellen is set to make her most important speech of the year. Federal Reserve Chair Janet Yellen will give her long-awaited speech in which she is expected to lay out the path for Fed policy going forward. Yellen's remarks will begin at 10 a.m. ET.

Odds of a Fed rate hike are on the way up. Data from Bloomberg shows traders are pricing in a 32% chance the Fed will raise interest rates at its September meeting and a 57.4% probability that a rate hike will happen before the end of the year.

Japan remains trapped in deflation. Core CPI fell 0.5% in July, making for the lowest reading since March 2013. The Japanese yen is little changed near 100.45 per dollar.

UK GDP was better than originally thought. The UK economy expanded at a 0.6% clip in the second quarter, according to a revised estimate of the original reading of up 0.4%. The British pound is little changed near 1.3200.

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Saudi Arabia threw cold water on the prospects of a freeze to oil output. Khalid Al-Falih, the Saudi energy minister, told Reuters on late Thursday that the kingdom didn't "believe any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us." West Texas Intermediate crude oil is down 0.3% at $47.16 a barrel.

America is driving more than ever. Data released by the Department of Energy shows that vehicles in the US drove a record 1.58 trillion miles in the first half of 2016, up 3.3% from the same period last year.

Amazon is opening another bookstore. The online retailer says it will open a brick-and-mortar bookstore in Chicago's Lakeview neighborhood in 2017.

Stock markets around the world are lower. Germany's DAX (-0.2%) leads the way down in Europe after Japan's Nikkei (-1.2%) took a dive in Asia. Hong Kong's Hang Seng (+0.4%) outperformed. S&P 500 futures are up 1.00 points at 2,174.50.

Earnings reporting is light. Big Lots reports ahead of the opening bell.

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US economic data flows. The advanced goods trade balance and second-quarter GDP will be released at 8:30 a.m. ET before University of Michigan consumer confidence crosses the wires at 10 a.m. ET. Then, at 1 p.m. ET, the Baker Hughes rig count will be announced. The US 10-year yield is down 1 basis point at 1.56%.

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