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Stock Index Futures Higher for Fourth Day

By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

U.S. stock index futures are on track for a fourth day of gains, as hopes for global stimulus continue to drive gains. 

Homebuyer mortgage demand increased to an 11-year high, as rates hit another record low. Mortgage applications to purchase a home increased 4% last week from the prior week and were 21% higher than a year ago, according to the Mortgage Bankers Association. This was the ninth consecutive week of gains. 

May housing starts were 974,000 when 1,100,000 were expected and permits were 1,220,000, which compares to the anticipated 1,250,000. 

Following his testimony before the Senate Banking Committee yesterday, Federal Reserve Chairman Jerome Powell will testify before the House Financial Services Committee today at 11:00 central time. Yesterday during his testimony Powell emphasized that the Federal Reserve is encouraged by the recent economic data, but the central bank remains cautious and believes the U.S. economy is still a long way from “normalcy.” He also reinforced his previous comments that the Federal Reserve is ready to do more if needed.

The technical picture remains positive for stock index futures.

CURRENCY FUTURES

The U.S. dollar appears to be bottoming and the euro currency appears to be topping. 

The euro zone consumer price index for May was down 0.1% on the month, as estimated. 

The Bank of England will hold its regularly scheduled policy meeting tomorrow.
The Bank of Canada governor said it could take a long time before the economy recovers. 

INTEREST RATE MARKET FUTURES 

The Treasury will auction 20-year bonds today.
Other Federal Reserve speakers today are Raphael Bostic at 11:00 and Loretta Mester at 3:00. 
According to financial futures markets there is a 95.6% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
 

SUPPORT & RESISTANCE


September 20 S&P 500
Support    3093.00     Resistance    3150.00 

September 20 U.S. Dollar Index
Support    96.700       Resistance    97.310

September 20 Euro Currency
Support    1.12360     Resistance    1.13200 

September 20 Japanese Yen
Support    .93150        Resistance    .93450

September 20 Canadian Dollar
Support    .73630        Resistance    .74100 

September 20 Australian Dollar
Support    .6850          Resistance    .6934

September 20 Thirty Year Treasury Bonds
Support    175^0         Resistance    176^12

August 20 Gold
Support    1715.0         Resistance    1743.0 

July 20 Copper
Support    2.5500         Resistance     2.5850 

August 20 Crude Oil
Support   37.34             Resistance    39.13

 



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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