By Alan Bush | Senior Financial Economist at ADMIS
Yesterday stock U.S. index futures opened with strong gains, but turned lower in the afternoon after White House economic adviser Larry Kudlow said President Trump’s announced plan did not indicate a softening stance on China.
Stock index futures are lower today, as global trade worries persist.
U.S. gross domestic product expanded at an annual rate of 2% in the first quarter, according to the Commerce Department. That was weaker than an earlier estimate of 2.2% growth. Economists had forecast a 2.2% rate.
However, first quarter corporate profits were revised to show an increase of 10.6%, which compares to the originally reported gain of 7.8%.
Initial weekly U.S. jobless claims rose 9,000 to 227,000 in the week ended June 23. Consensus forecasts had called for initial claims to be 220,000.
We are seeing less and less flow of funds into the flight to quality markets such as Treasuries and the Japanese yen even though the global trade situation appears to be getting no better.
The U.S. dollar turned lower and the euro currency advanced due to news of rising inflation in some regions of Germany, which held above the target rate set by the European Central Bank.
Also, the euro was supported by news that euro zone business confidence in June held up in the face of fresh tariffs.
The British pound continued to decline after yesterday it was reported that London house prices declined, as U.K. property values continue to soften.
Futures are only mixed in spite of the weaker than expected and bullish gross domestic product report, which should be viewed as a sign of weakness.
St. Louis Federal Reserve Bank President James Bullard will speak at 9:45 central time.
The Treasury will auction seven year notes today.
The probability of a fed funds rate hike at the Federal Open Market Committee’s September 26 meeting is 70%, which compares to 74% yesterday.
September 18 S&P 500
Support 2691.00 Resistance 2722.00
September 18 U.S. Dollar Index
Support 94.660 Resistance 95.310
September 18 Euro Currency
Support 1.15880 Resistance 1.16770
September 18 Japanese Yen
Support .91030 Resistance .91560
September 18 Canadian Dollar
Support .75000 Resistance .75470
September 18 Australian Dollar
Support .7326 Resistance .7377
September 18 Thirty Year Treasury Bonds
Support 144^24 Resistance 145^12
August 18 Gold
Support 1248.0 Resistance 1260.0
September 18 Copper
Support 2.9550 Resistance 3.0100
August 18 Crude Oil
Support 72.07 Resistance 73.13
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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