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U.S. Bank Earnings Better than Expected

by Archer Financial Services | Apr 13, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES 

Stock index futures are higher, as they look past geopolitical risks and concerns about possible faster interest rate increases from the Federal Reserve. In addition, there is support from expectations of strong corporate earnings. First quarter earnings season started today.

Stronger than expected earnings from U.S. banks were supportive.

Investors are expecting tax cuts to help U.S. corporations show their biggest quarterly earnings growth in seven years.

Some analysts are predicting quarterly earnings for S&P 500 companies to increase 17% to 18.5% from a year ago.

The 9:00 central time April consumer sentiment index is expected to be 101 and the 9:00 Job Openings and Labor Turnover Survey (JOLTS) is anticipated to be 6.143 million. 

Longer term, traders will probably gradually shift their focus of attention more toward earnings and the still accommodative global interest rate environment.

 

CURRENCY FUTURES

The U.S. dollar is higher due to the increased probability that the Federal Open Market Committee will increase its fed funds rate in June.

The euro currency is lower in spite of news that the euro zone's trade surplus widened in February.  

The German final March consumer price index was up .4%, as expected.

Flight to quality longs continue to be liquidated in the Japanese yen in light of the perceived reduced tensions in Syria.

The Canadian dollar and the Australian dollar are higher due to stronger crude oil prices.

 

INTEREST RATE MARKET FUTURES

Futures are a little lower as flight to quality longs are liquidated as a result of reduced Mideast tensions.

Federal Reserve Bank of Boston President Eric Rosengren said the economy is getting strong fiscal stimulus right now.

Dallas Federal Reserve Bank President Robert Kaplan will speak at 12:00.

The probability of a fed funds rate hike from the Federal Open Market Committee at the June 13 meeting is 95%, which compares to 90% yesterday.

 

SUPPORT AND RESISTANCE

 

June 18   S&P 500

Support    2649.00       Resistance    2685.00

 

June 18   U.S. Dollar Index

Support    89.210         Resistance    89.640

 

June 18   Euro Currency

Support    1.23540       Resistance    1.24160

 

June 18   Japanese Yen

Support    .93010         Resistance    .93690

 

June 18   Canadian Dollar

Support    .79430         Resistance    .79850

 

June 18   Australian Dollar

Support    .7743           Resistance    .7823

 

June 18   Thirty Year Treasury Bonds

Support    145^0          Resistance    145^26

 

June 18   Gold

Support    1331.0         Resistance    1350.0

 

May 18   Copper

Support    3.0500         Resistance    3.1000

 

May 18   Crude Oil

Support    66.58           Resistance    67.88


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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