By Alan Bush | Senior Financial Economist at ADMIS
S&P 500 and Dow Jones futures advanced as investors focused on positive developments surrounding the U.S. tax bill.
Initial U.S. jobless claims fell 2,000 to 238,000 in the week ended November 25. Economists predicted claims to total 240,000.
Personal income increased .4% in October after rising at the same pace in September. Economists had expected a .3% gain in income.
Personal spending, increased .3% in October from a month earlier, which compares to the estimate of a .2% rise.
The computer models that I use continue to generate bullish signals for stock index futures.
The main trend for stock index futures is higher.
The U.S. dollar firmed, moving further away from a two month low that was registered earlier this week. Some traders are establishing long positions on the belief that the Federal Reserve will continue to unwind its record stimulus plan in 2018 as growth prospects improve.
The euro currency is higher in spite of news that the annual rate of inflation in the euro zone rebounded in November, but was below expectations. However, consumer prices were 1.5% higher than a year ago.
The unemployment rate in the euro zone declined to 8.8% in October, which is the lowest in almost nine years. In Germany, the jobless rate remained at a record low of 5.6% and retail sales unexpectedly fell 1.4% from a year earlier.
The British pound responded positively to news that an agreement was reached with the E.U. over the Irish border.
The Japanese yen is lower after a report showed Japan’s industrial output increased .5% in October, which compared to the estimate of a 1.9% gain.
The Canadian dollar and the Australia dollar are lower in spite of higher crude oil prices.
Futures are lower, especially at the long end of the curve.
Dallas Federal Reserve Bank President Robert Kaplan will speak at 12:00.
According to financial futures markets, the probability that the Federal Open Market Committee will increase its fed funds rate at the December 12-13 meeting is over than 99%.
December 17 S&P 500
Support 2620.00 Resistance 2639.00
December 17 U.S. Dollar Index
Support 93.010 Resistance 93.540
December 17 Euro Currency
Support 1.18110 Resistance 1.18950
December 17 Japanese Yen
Support .88850 Resistance .89460
December 17 Canadian Dollar
Support .77430 Resistance .77860
December 17 Australian Dollar
Support .7545 Resistance .7609
March 18 Thirty Year Treasury Bonds
Support 151^20 Resistance 152^12
February 18 Gold
Support 1275.0 Resistance 1291.0
March 18 Copper
Support 3.0500 Resistance 3.1000
January 18 Crude Oil
Support 57.21 Resistance 58.31
For more information about these markets, please contact Alan at 312.242.7911 or via email at firstname.lastname@example.org. 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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This is not a solicitation of any order to buy or sell, but merely a collection of information related to Archer Financial services and commodities trading provided by Archer Financial services. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor do they purport to be complete. No responsibility is assumed with respect to any such element, nor with respect to any expression of opinion herein contained.
The risk of loss in trading futures and options on futures can be substantial. Each investor must carefully consider whether this type of investment is appropriate for them. Past performance is not necessarily indicative of future results.