By Alan Bush | Senior Financial Economist at ADMIS
S&P 500, Dow and NASDAQ futures advanced to new historical highs in the overnight trade as signs of quickening economic activity around the globe encouraged risk-on sentiment among investors.
The Automatic Data Processing employment change report showed employers added 250,000 jobs, which is the biggest monthly increase since March. The median estimate called for 188,000.
Initial jobless claims increased by 3,000 to a seasonally adjusted 250,000 in the week ended December 30. Economists expected 240,000 new claims.
The 8:45 central time December services PMI is expected to be 52.4.
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 is lower even though yesterday’s release of the minutes of the December 12 -13 policy meeting were considered to be a little hawkish on balance.
Euro currency futures advanced to their highest level since December 2014 after a report showed euro area activity accelerated at its fastest rate since early 2011.
A composite purchasing managers’ index for manufacturing and services advanced to 58.1 in December from 57.5 a month earlier, beating analyst’s expectations.
The British pound is higher in spite of news that U.K. consumer credit growth was below expectations in November 2017.
The Canadian dollar is higher on news that Canadian producer prices increased in November at their fastest pace in nearly three years, coming in up 1.4% in November following a 1.1% increase in the previous month.
INTEREST RATE MARKET FUTURES
Futures are lower across the board today after the Federal Open Market Committee yesterday released the minutes of its December policy meeting.
The FOMC said it could speed up rate hikes because of President Trump's tax cuts.
St. Louis Federal Reserve Bank President James Bullard will speak at 12:30.
The probability of a fed funds rate hike at the FOMC’s March 21 policy meeting is 73%, which compares to 57% yesterday.
Futures are likely to work lower in the longer term, especially at the long end of the curve, as growth in the global economy accelerates.
March 18 S&P 500
Support 2706.00 Resistance 2724.00
March 18 U.S. Dollar Index
Support 91.420 Resistance 92.030
March 18 Euro Currency
Support 1.20530 Resistance 1.21350
March 18 Japanese Yen
Support .88860 Resistance .89270
March 18 Canadian Dollar
Support .79670 Resistance .80110
March 18 Australian Dollar
Support .7804 Resistance .7876
March 18 Thirty Year Treasury Bonds
Support 151^16 Resistance 152^10
February 18 Gold
Support 1305.0 Resistance 1323.0
March 18 Copper
Support 3.2450 Resistance 3.3000
February 18 Crude Oil
Support 61.41 Resistance 62.31
For more information about these markets, please contact Alan at 312.242.7911 or via email at email@example.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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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.