By Alan Bush | Senior Financial Economist at ADMIS
The U.S. producer price index, which is a measure of the prices businesses receive for their goods and services, increased 0.1% in February from a month ago. The median estimate called for a .2% increase.
The producer price index, excluding the often volatile food and energy categories, was up 0.1% in February from the prior month when a gain of .2% was anticipated.
U.S. durable goods orders increased 0.4% in January from the prior month, which is the third consecutive monthly gain. Economists expected a 0.6% decline for the month. Durable goods are manufactured products intended to last at least three years.
The March Atlanta Federal Reserve business inflation expectations report will be released at 9:00 central time. Last month the figure was1.9%.
The 9:00 January construction spending report is expected to show a gain of .3%.
There is no obvious news that would account for today’s gains in stock index futures.
Since the lows were made in late December, stock index futures have been performing better than the news would suggest, which should be viewed as a sign of long term strength.
The U.S. dollar declined as financial futures markets are showing the Federal Open Market Committee may be moving toward accommodation this year.
The euro currency firmed on news that industrial production in the euro zone increased.
The European Union's statistics agency said output from factories, mines and utilities was 1.4% higher in January than in December. This compares to the estimate of a 1.0% increase.
The British Parliament rejected Prime Minister Theresa May's Brexit deal for a second time.
The Treasury will auction 30 year bonds today.
Financial futures markets are predicting a 78% probability that the fed funds rate will remain unchanged at the current level of 2.25%-2.50% this year. There is a 22% chance for a 25 basis point decline in 2019.
Currently, futures are caught between the bullish influence of a weakening global economy and the bearish influence of increased optimism for a U.S.-China trade agreement.
A U.S.-China trade deal, or strong hint of one, would be a catalyst to take futures lower.
June 19 S&P 500
Support 2785.00 Resistance 2815.00
June 19 U.S. Dollar Index
Support 96.170 Resistance 96.500
June 19 Euro Currency
Support 1.13580 Resistance 1.14000
June 19 Japanese Yen
Support .90310 Resistance .90710
June 19 Canadian Dollar
Support .74880 Resistance .75170
June 19 Australian Dollar
Support .7053 Resistance .7098
June 19 Thirty Year Treasury Bonds
Support 145^20 Resistance 146^16
April 19 Gold
Support 1298.0 Resistance 1316.0
May 19 Copper
Support 2.9100 Resistance 2.9450
April 19 Crude Oil
Support 56.88 Resistance 58.13
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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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.