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S&P 500 Futures Up for a Fourth Day

by Archer Financial Services | Nov 02, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES

Global equity markets are mostly higher on hopes for a U.S.-China trade agreement following a phone call yesterday between President Trump and Chinese President Xi. President Trump said he had a "long and very good conversation" with China’s president.

U.S. stock index futures are higher for a fourth day.    

The U.S. economy added more jobs than expected in October.  Nonfarm payrolls increased 250,000, which compares to the expectations of a gain of 188,000. Manufacturing payrolls were up 32,000 when up 13,000 were anticipated.

The unemployment rate remained unchanged at 3.7%, as expected, and matched the lowest rate since December 1969.

Average hourly earnings increased .2%, as estimated.  

The 9:00 central time September factory orders report is expected to show an increase of .4%.

Major downtrend lines have recently been take out on the upside.

 

CURRENCY FUTURES

There was only limited support for the greenback when the stronger than expected nonfarm payrolls report was released.

Lower crude oil prices pressured the “commodity currencies,” the Canadian dollar and the Australian dollar.

There was additional pressure on the Canadian dollar on news that Canadian job growth slowed in October. Canada's labor force survey indicated the economy added a net of 11,200 jobs in October, which was short of market expectations for a 15,000 gain.

Also, wage growth in Canada decelerated to its slowest advance in over a year.  

 

INTEREST RATE MARKET FUTURES

Futures are lower as result of the higher than expected U.S. nonfarm payrolls report.

According to the financial futures markets, the probability of a fed funds rate hike at the Federal Open Market Committee’s December 19 policy meeting is 77%, which compares to 74% yesterday.

 

SUPPORT AND RESISTANCE

December 18   S&P 500

Support    2718.00      Resistance    2771.00

 

December 18   U.S. Dollar Index

Support    95.670        Resistance    96.260

 

December 18   Euro Currency

Support    1.14210      Resistance    1.14970

 

December 18   Japanese Yen

Support    .88650        Resistance    .89110

 

December 18   Canadian Dollar

Support    .76240        Resistance    .76740

 

December 18   Australian Dollar

Support    .7188          Resistance    .7273

 

December 18   Thirty Year Treasury Bonds

Support    137^22       Resistance    138^28

 

December 18   Gold

Support    1228.0        Resistance    1241.0

 

December 18   Copper

Support    2.7000        Resistance    2.8100

 

December 18   Crude Oil

Support    62.72          Resistance    64.13


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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