header_img

Stock Index Futures Higher on Limited News

by Archer Financial Services | Jul 09, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES

U.S. stock index futures continue to be supported by Friday’s mostly better than expected U.S. jobs data that helped traders look past increased trade tensions between the U.S. and China.

Some analysts are saying stock index futures are higher because the trade war didn’t worsen over the weekend.

The 2:00 central time May consumer credit report is expected to show an increase of $12.4 billion.

Second quarter earnings reports start on Friday the 13th with major banks reporting. S&P 500 companies are anticipated to report 21% growth in earnings per share for the June quarter, according to Thomson Reuters I/B/E/S.

Futures are performing better than the news would suggest, which should be viewed as a sign of strength.

Overall, U.S. stock index futures are holding up relatively well in spite of the ongoing global trade uncertainties.

 

CURRENCY FUTURES

The U.S. dollar is lower and the euro currency is higher as interest rate differential expectations are beginning to turn a little less favorable to the U.S. dollar and a bit more supportive to the euro.

The British pound continued higher today after last week Bank of England Governor Mark Carney said the U.K. economy is supporting the case for higher interest rates.

Sterling brushed off news of the resignation of two ministers that are in opposition to British Prime Minister Theresa May’s plan for leaving the E.U.

The Japanese yen is lower as flight to quality longs are liquidated. However, pressure on the yen was limited by news of wage gains in Japan.

Higher crude oil prices supported the Canadian dollar and the Australian dollar.

 

INTEREST RATE MARKET FUTURES

Futures are mostly lower as flight to quality longs are liquidated.

The probability of a fed funds rate hike at the Federal Open Market Committee’s September 26 meeting is 82%, which is unchanged from Friday.

Although flight to quality buying is likely to come in from time to time, the longer term trend for futures is lower.

 

SUPPORT AND RESISTANCE

September 18   S&P 500

Support    2759.00       Resistance    2781.00

 

September 18   U.S. Dollar Index

Support    93.380         Resistance    93.810

 

September 18   Euro Currency

Support    1.18010       Resistance    1.18630

 

September 18   Japanese Yen

Support    .90760         Resistance    .91110

 

September 18   Canadian Dollar

Support    .76360         Resistance    .76660

 

September 18   Australian Dollar

Support    .7424           Resistance    .7491

 

September 18   Thirty Year Treasury Bonds

Support    145^0          Resistance    145^30

 

August 18   Gold

Support    1252.0         Resistance    1271.0

 

September 18   Copper

Support    2.8100         Resistance    2.8900

 

August 18   Crude Oil

Support    73.32           Resistance    74.41


For more information about these markets, please contact Alan at 312.242.7911  or via email at alan.bush@admis.com. Thank you.

Would you like to open an account with us? Go to our interactive New Account application at Open an Account. It is fast, saves on postage and it’s green.

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.

Offers