Headline News: The S&P 500 futures are up 8 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 73 points and are trading 0.5% above fair value. The Dow Jones Industrial Average futures are down 8 points and are trading slightly above fair value. Equity futures are mixed this morning. Strength in the mega caps is helping performance along with some hope that the market can forge a rebound effort today. In a Wall Street Journal interview, New York Fed President Williams (FOMC voter) said that combating inflation is likely to require lifting the benchmark rate above 3.5% and holding it there for a while. There are also some economic data from overseas in play, including China’s Manufacturing PMI coming in stronger than expected but remaining in contraction for the second consecutive month in the August reading. Eurozone’s CPI increased 9.1% yr/yr in the flash reading for August, accelerating past its peak in July. Also, Russia halted gas supplies from Europe’s key supply route today, as previously indicated, according to Reuters. Amid the aforementioned headlines, energy complex futures trade mixed this morning. WTI crude oil futures are down 2.9% to $88.94/bbl ,while natural gas futures… Read More
Headline News: The S&P 500 futures are up 26 points and are trading 0.6% above fair value. The Nasdaq 100 futures are up 108 points and are trading 0.8% above fair value. The Dow Jones Industrial Average futures are up 176 points and are trading 0.6% above fair value. Equity futures indicate a higher open in a reflective rebound following losses in the last two sessions. Bloomberg is reporting that the EU is set to meet its gas storage filling goal two months ahead of target. European Commission President von der Leyen said that an emergency intervention is being planned to rein in energy prices. Energy complex futures are trending lower amid the aforementioned macro headlines, as well as an understanding that Shenzhen is imposing COVID restrictions. WTI crude oil futures are down 3.0% to $94.03/bbl. Natural gas futures are down 1.1% to $9.23/mmbtu. Unleaded gasoline futures are down 3.6% to $2.61/gal. Treasury yields are drifting lower. The 2-yr note yield is down one basis point to 3.42%, while the 10-yr note yield is down four basis points to 3.06%. Market participants will receive the June FHFA Housing Price Index (prior 1.4%) and June S&P Case-Shiller Home Price Index (Briefing.com… Read More
Headline News: The S&P 500 futures are down 11 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 50 points and are trading 0.5% below fair value. The Dow Jones Industrial Average futures are down 55 points and are trading 0.1% below fair value. Futures are weaker amid nervousness that the moment participants have been waiting for all week is at hand. The July PCE Price Index is out at 8:30 a.m. ET followed by Fed Chair Powell’s Jackson Hole symposium speech at 10:00 a.m. ET. Commodity prices are on the rise. WTI crude oil futures are up 1.2% to $93.66/bbl. Natural gas futures are up 1.7% to $9.51/mmbtu. Copper futures are up 1.8% to $3.76/lb. The Treasury market is mixed this morning. The 2-yr note yield is down one basis point to 3.38% while the 10-yr note yield is up four basis points to 3.07%. At 8:30 a.m. ET market participants will receive the July PCE Price Index (Briefing.com consensus 0.1%; prior 1.0%) and core PCE Price Index (Briefing.com consensus 0.3%; prior 0.6%) included in the Personal Income (Briefing.com consensus 0.6%; prior 0.6%) and Spending Report (Briefing.com consensus 0.4%; prior 1.1%). July Advanced Intl.… Read More
Headline News: The S&P 500 futures are up 24 points and are trading 0.6% above fair value. The Nasdaq 100 futures are up 94 points and are trading 0.6% above fair value. The Dow Jones Industrial Average futures are up 123 points and are trading 0.4% above fair value. Futures are indicating a higher open after some better-than-expected earnings reports from technology companies. Salesforce Inc (CRM) and NVIDIA (NVDA), though disappointed with guidance. Tesla (TSLA) is providing some underlying support as its shares move up with a 3-for-1 stock split that takes effect today. Other mega-cap stocks are sporting gains in premarket action that have also helped the standing of the futures market. In overseas news, Germany’s Q2 GDP was revised higher by ten basis points after the flash reading showed no growth. The Bank of Korea raised its base rate by 25 bps to 2.50%, as expected. Treasury yields are little changed this morning. The 10-yr note yield is down two basis points to 3.09%, while the 2-yr note yield is unchanged at 3.37%. Atlanta Fed President Bostic (not an FOMC voter) said he’s not sure the U.S. has reached peak inflation, and Kansas City Fed President George (FOMC… Read More
Headline News: The S&P 500 futures are up 7 points and are trading slightly above fair value. The Nasdaq 100 futures are up 26 points and are slightly above fair value. The Dow Jones Industrial Average futures are up 25 points and are trading 0.1% above fair value. The market is still in wait-and-see mode ahead of Fed Chair Powell’s speech on Friday at the Jackson Hole symposium. Notably, the PCE Price Index for July will be released shortly before that speech. Minneapolis Fed President Neel Kashkari (2023 FOMC voter) said it’s not the time to back off the inflation fight, according to The Wall Street Journal. There are reports suggesting President Biden will announce today a move to forgive up to $10,000 in federal student loan debt for borrowers earning less than $125,000 a year. Earlier, the weekly MBA Mortgage Applications Index was down 1.2%, with purchases down 1.0% while refinancing applications were down 3.0%. Oil prices are rising this morning, with WTI crude oil futures up 1.1% to $94.71/bbl. Natural gas futures are up 0.2% to $9.37/mmbtu. Treasury yields are inching higher, too. The 10-yr note yield is up one basis point to 3.05%, while the 2-yr note… Read More
Headline News: The S&P 500 futures are down 46 points and are trading 1.2% below fair value. The Nasdaq 100 futures are down 194 points and are 1.6% below fair value. The Dow Jones Industrial Average futures are down 302 points and are trading 0.9% below fair value. Futures for the major indices indicate a lower open, with market participants still feeling the market is due for a consolidation period after getting ahead of itself with recent gains. There is some anxiousness in play this morning ahead of the Jackson Hole Fed symposium this week, with Chairman Powell set to speak on Friday. In other central bank news, European Central Bank policymaker Nagel said that the ECB must keep raising rates regardless of the risk of recession. On the flip side, the People’s Bank of China lowered its one-year loan prime rate by five basis points to 3.65%, and the five-year loan prime rate was lowered by 15 bps to 4.30%. WTI crude oil futures are down 0.1% to $90.40/bbl. Natural gas futures are up 4.8% to $9.78/mmbtu. Unleaded gasoline futures are down 0.4% to $3.00/gal. Treasury yields are mixed, with the 2-yr note yield up one basis point to… Read More
Headline News: The S&P 500 futures are down 37 points and are trading 0.9% below fair value. The Nasdaq 100 futures are down 136 points and are 1.1% below fair value. The Dow Jones Industrial Average futures are down 252 points and are trading 0.7% below fair value. The market is poised for a lower open on this option’s expiration day. Cryptocurrencies are down big with no news catalyst. Meme stocks are on the defensive as some speculative froth is being taken out of the market following the news that Ryan Cohen completed the sale of his BBBY stake and reports the company has hired a law firm to help address its debt load. Separately, there is lingering anxiety is in the mix related to the Fed continuing to be aggressive with rate hikes. There’s also weak economic data from Europe in play this morning. Germany’s PPI was up 37.2% year-over-year in July, while the U.K.’s GfK Consumer Confidence Index for August fell to a fresh record low. WTI crude oil futures are down 2.2% to $88.54/bbl. Natural gas futures are down 2.2% to $8.98/mmbtu. Unleaded gasoline futures are down 1.6% to $2.97/gal. Treasury yields are on the rise, with… Read More
Headline News: The S&P 500 futures are up 8 points and are trading 0.1% above fair value. The Nasdaq 100 futures are up 34 points and are 0.1% above fair value. The Dow Jones Industrial Average futures are up 39 points and are trading 0.2% above fair value. Futures for the major indices are modestly higher, with market participants waiting to see if yesterday’s rally will fuel a buy-the-dip trade or a longer phase of consolidation. More central bank news is in play today. Norges Bank raised its key rate by 50 basis points to 1.75% and said it expects to raise the rate further in September. Also, European Central Bank policymaker Schnabel said that she expects another big interest rate hike in September despite the growing risk of recession. On a related note, Eurozone CPI was up 8.9% year-over-year versus 8.6% in June. The U.S. and Taiwan will hold trade and investment talks this fall, according to the Wall Street Journal. Energy complex futures are higher this morning. WTI crude oil futures are up 1.2% to $89.16/bbl. Natural gas futures are up 0.8% to $9.32/mmbtu. Unleaded gasoline futures are up 1.1% to $2.96.gal. Treasury yields are lower, with the… Read More
Headline News: The S&P 500 futures are down 35 points and are trading 0.9% below fair value. The Nasdaq 100 futures are down 132 points and are 1.1% below fair value. The Dow Jones Industrial Average futures are down 220 points and are trading 0.5% below fair value. Futures for the major indices are down this morning ahead of the July 26-27 FOMC Minutes release at 2:00 p.m. ET today. Target’s (TGT) weaker-than-expected quarterly results are adding to the hesitation in pre-market action. Overseas, the UK’s CPI report was the highest reading in 40 years, up 10.1%year-over-year. The Reserve Bank of New Zealand raised its official cash rate by 50 bps to 3.00%, as expected, continuing a slate of aggressive rate hikes. The weekly MBA Mortgage Applications Index was down 2.3%, with weakness in both purchase and refinancing applications. Other economic releases today include July retail sales (Briefing.com consensus 0.2%; prior 1.0%) and retail sales excluding auto’s (Briefing.com consensus 0.1%; prior 1.0%) at 8:30 a.m. ET, June Business Inventories (Briefing.com consensus 1.5%; prior 1.4%) at 10:00 a.m. ET, weekly EIA Crude Oil Inventories (prior +5.45 million), and July 26-27 FOMC Minutes release at 2:00 p.m. ET. WTI crude oil futures… Read More
Headline News: The S&P 500 futures are down 25 points and are trading 0.6% below fair value. The Nasdaq 100 futures are down 60 points and are 0.6% below fair value. The Dow Jones Industrial Average futures are down 194 points and are trading 0.5% below fair value. Futures for the major indices are on the weaker side in response to some weaker-than-expected data out of China that has stirred global growth concerns. Also, market participants are not convinced the rally off the June lows is going to last. The House passed the Inflation Reduction Act, with President Biden expected to sign it later this week. China’s weaker-than-expected economic data included July retail sales, industrial production, and fixed asset investment. These reports presumably prompted the People’s Bank of China to cut its one-year medium-term lending facility loan rate and seven-day repurchase rate by ten basis points apiece to a respective 2.75% and 2.0%. Meanwhile, Japan’s Q2 flash GDP showed an increase of 0.5% quarter-over-quarter. WTI crude oil futures are making big downside moves this morning on the growth concerns, down 5.1% to $87.37/bbl. Natural gas futures are down 1.6% to $8.64/mmbtu. Unleaded gasoline futures are down 3.9% to $2.92/gal. The… Read More
