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Dow Futures at New Record High

by Archer Financial Services | Aug 07, 2017
By Alan Bush | Senior Financial Economist at ADMIS     


STOCK INDEX FUTURES

Dow Jones futures advanced to a new record high on Friday after the stronger than expected U.S. employment report was released and also to a new historical high today on follow through buying.

The 2:00 central time June consumer credit report is expected to show an increase of $15.25 billion.

The main trend for stock index futures is higher. 

 

CURRENCY FUTURES

The U.S. dollar is lower today, giving back some of the gains that were registered on Friday’s better than anticipated U.S. employment report.

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

The euro currency advanced in the overnight trade in spite of news that German industrial output surprisingly declined.

In adjusted terms, industrial output in Germany declined by 1.1% in June, which is the index's first monthly decline since last December. Economists expected a slight gain of .1%. 

There is underlying support for the euro, as 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.

The main trend for the euro is higher.

The British pound is lower after it was reported that U.K. consumers reduced spending for the third month in July. 

Lower crude oil prices pressured the Canadian dollar and the Australian dollar. However, the selling of the currency of Australia was limited by news that job advertisements in Australia posted the fifth monthly gain in a row, increasing 1.5% in July compared to June.

  

INTEREST RATE MARKET FUTURES

At 10:45 St. Louis Federal Reserve Bank President James Bullard will discuss the U.S. economy and monetary policy and at 12:25 Minneapolis Federal Reserve Bank President Neel Kashkari will take part in a moderated audience question and answer session.

The probability that the Federal Open Market Committee will increase its fed funds rate at the December 13 meeting is 50%, which compares to 51% on Friday.

The long term fundamentals for futures are mixed.

 

SUPPORT AND RESISTANCE

September 17   S&P 500

Support    2469.00       Resistance    2481.00

September 17   U.S. Dollar Index

Support    93.030         Resistance    93.450

September 17    Euro Currency

Support    1.1791         Resistance    1.1855

September 17    Japanese Yen

Support    .90330         Resistance    .90660

September 17    Canadian Dollar

Support    .78710         Resistance    .79440

 

September 17   Australian Dollar

Support    .7895           Resistance    .7967

 

September 17   Thirty Year Treasury Bonds

Support    153^20        Resistance    154^16

 

December 17   Gold

Support    1258.0         Resistance    1268.0

 

September 17   Copper

Support    2.8700         Resistance    2.9200

 

September 17   Crude Oil

Support    48.55           Resistance    49.81


 

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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