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Dow at New Highs

by Archer Financial Services | Aug 02, 2017
By Alan Bush | Senior Financial Economist at ADMIS     


STOCK INDEX FUTURES 

Dow futures hit record highs today.

Much of the strength in stock index futures recently can be attributed to upbeat earnings reports and signs of a stronger global economy.  

The July Automatic Data Processing employment change report showed a 178,000 increase, which compares to the estimate of a gain of 190,000. June was upwardly revised to 191,000.

The main trend for stock index futures is higher. 

 

CURRENCY FUTURES

The U.S dollar is lower and remains near a 13 month low.

The main trend for the greenback is lower, as interest rate differentials remain bearish.

The euro currency advanced to its highest level since January 2015 in spite of news that euro zone producer prices fell in June. The European Union's statistics agency said producer prices fell .1% from May.

The prices of goods leaving the euro zone's factories fell in June for the third month in four months, as inflation remains weak despite an improvement in economic growth.

Speculation remains that the European Central Bank could announce plans to wind down its quantitative easing program this year, possibly at its September 7 policy meeting, which is an underlying bullish factor for the currency of the euro zone.

The main trend for the euro is higher.

The British pound is steady despite news that U.K. construction growth slowed in July.

A purchasing managers' index on U.K. construction sector activity fell to its lowest level since August 2016 to 51.9, which is sharply lower from 54.8 in June.

The Bank of England will hold its policy meeting tomorrow.  Currently the market is pricing in a rate increase by the end of this year at less than 50%.

 

INTEREST RATE MARKET FUTURES

Cleveland Federal Reserve Bank President Loretta Mester will speak at 10:00 and San Francisco Federal Reserve Bank President John Williams will discuss monetary policy at 2:30.

The probability that the Federal Open Market Committee will increase its fed funds rate at the December 13 meeting is 45.5%, which is unchanged from yesterday.

The long term fundamentals for futures are mixed.

 

SUPPORT AND RESISTANCE

September 17   S&P 500

Support    2468.00       Resistance    2481.00

 

September 17   U.S. Dollar Index

Support    92.550         Resistance    93.09

 

September 17    Euro Currency

Support    1.1821         Resistance    1.1900

 

September 17    Japanese Yen

Support    .90210         Resistance    .90880

 

September 17    Canadian Dollar

Support    .79420         Resistance    .80010

 

September 17   Australian Dollar

Support    .7931           Resistance    .7989

 

September 17   Thirty Year Treasury Bonds

Support    153^8          Resistance    154^16

 

December 17   Gold

Support    1268.0         Resistance    1279.0

 

September 17   Copper

Support    2.8600         Resistance    2.8900

 

September 17   Crude Oil

Support    48.51           Resistance    49.59


 

For more information about these markets, please contact Alan at 312.242.7911 or via email at alan.bush@admis.com. Thank you.

 

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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff.  Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.

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