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Feb 15, 2019 - Market Blog

2/15/2019

 

It is Great to be 8!

 

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Equities

 

A four-day winning streak was snapped yesterday no thanks to a 1.2% retraction in a key retail sales number that collapsed to its lowest level since 2009.  A preliminary senate vote to fund the government passed late Thursday which helped to counter the troubling retail trend.  President Trump will be speaking this morning and may expand on his intentions to declare a National Emergency in order to make due on his campaign promise after failing to secure funding.  Chinese negotiations are ongoing and will be extended to Washington through next week to include participation directly with the President as the March 1 deadline rapidly approaches. Any clarity around milestones reached will surely impact market conditions. Meanwhile, Chinese markets have pulled much of Asia down near 1% off softer factory results highlighting the urgency to find a lasting resolution. Europe is seeing more promising activity with nearly the inverse despite slowing auto numbers as the developed world hopes for an amicable trade resolution. 

 

Credit Markets:

 

Bonds have traded in a rather large range this week with yesterday flushing out most of the yield increase from earlier in the week off recession concerns. The yield on the 10 year is ticking higher by 1% early this morning near 2.68%. 

 

Commodities:

 

Energy prices enjoyed a solid week with crude futures (/CL) breaking above $55 a barrel which is now just a fraction below 2019 highs with more signs of production cuts ahead of weekly rig count numbers. 

  

Pre-Market:

 

Futures have erased overnight losses to now indicate double-digit gains in the S&P 500 (/ES) ahead of an extended holiday weekend. The major benchmarks are all on pace to log their 8th straight weekly gain to claw back almost all paper losses stemming from the December snafu. Volatility has followed suite with its eighth straight weekly decline also on the radar for the CBOE Volatility Index (VIX) touching lows not seen since October. Industrial production will be shared just before the open with a 0.1% expectation followed by a consumer sentiment reading shooting for 93.3. Sour earnings from agricultural manufacturer, Deere (DE) have done very little to spoil the recent rally with shares down $6 ahead of the open. 

  

Major Economic Reports:

 

7:30 am CT – Empire State Mfg. Survey

7:30 am CT – Import and Export Prices

8:15 am CT - Industrial Production

8:55 am CT– Raphael Bostic Speaks

9:00 am  CT – Consumer Sentiment

12:00 pm CT –Baker-Hughes Rig Count

 

Notable Earnings:

 

Friday – 2/15:

A.M. – DE, PCG, PEP,YNDX

P.M. –  N/A

 

Monday – 2/18:

A.M. – Market      

P.M. – Closed

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 14, 2019 - Market Blog

2/14/2019

 

Nancy and Donald, sitting in a tree..

 

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Equities

Can you feel the love?  The U.S. equity markets sure seem to be feeling it.  Worries about slowing economic growth have been replaced by optimism about upcoming trade talks between the U.S. and China.  In addition, fears of another partial government shutdown have subsided, after potential concessions by the president on border wall funding.  A recent positive quarterly earnings report sent shares of hotelier, Hilton Worldwide Holdings (HLT) 6.8% higher to $79.37.  Video game maker, Activision Blizzard (ATVI) gained 7% after it announced it would be cutting 8% of its workforce.  This helped oppose declines from Trip Advisor (TRIP) and Dish Network (DISH).  On the day, the tech heavy Nasdaq Composite (COMP) rose 0.1% to 7420.38, the Dow Jones Industrials ($DJI) gained 0.5% to 25543.27, and the S&P 500 (SPX) ended 0.3% higher to 2753.03.  Both the Dow and S&P 500 are at their highest level since December 3rd .

 

Credit Markets:

Optimism about trade negotiations sent Treasury yields higher yesterday.  The yield on the 10yr. Treasury rose for a third consecutive session to 2.706% from 2.684% on Tuesday.

 

Commodities:

Despite a 15 month high in U.S. crude inventories, crude oil managed to move higher on U.S./ China trade optimism.  U.S. crude oil futures (/CL) gained 1.5% yesterday to settle at $53.90 per barrel.  This puts crude oil near the high end of its $50 to $55 range of the past five weeks.

 

Pre-Market:

A poor retail sales number, reversed an earlier gain in equity futures.  Recessionary fears were heightened after retail sales for December had their worst decline in nine years.  As of this writing, U.S. Crude oil futures (/CL) are 0.6% lower near $53.50 per barrel,  30yr. Treasury Bonds (/ZB) are 0.7% higher near 146’25, and S&P 500 futures (/ES) are 0.4% lower near 2737. 

 

Major Economic Reports:

 

7:30 am CT –  Jobless Claims

7:30 am CT –  PPI

7:30 am CT –  Retail Sales

9:00 am CT –   Business Inventories

9:30 am CT–-   EIA Natural Gas Report

10:00 am CT -  3-Month & 6-Month Bill Announcement

10:00 am CT – 2-Yr FRN Note Announcement

10:00 am CT – 30-Yr TIPS Announcement

10:30 am CT – 4-Week and 8-Week Bill Auction

3:30 pm CT –   Fed Balance Sheet

3:30 pm CT -    Money Supply

 

Notable Earnings:       

    

Thursday  – 2/14:

A.M. – AZN, CME, GOOS, KO, WM

P.M. – AMAT, ANET, BIDU, CBS, CC, NVDA

 

Friday – 2/15:

A.M. – DE, PCG, PEP, YNDX

P.M. – N/A

 

 

 

 

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 13, 2019 - Market Blog

2/13/2019

 

Love is in the Air!  

 

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Equities

 

Equities appear to be charging ahead yet again today as optimism around potential deals on both the government shutdown front as well as the long-standing Chinese quarrel finally appear to be within reach. S&P 500 futures (/ES) are breaking above a key 2750 level with nearly a double-digit gain to recapture territory that hasn’t been seen since early December. Both the S&P 500 (SPX) and Nasdaq Composite (COMP) tacked on a solid 1% in yesterday’s session. The Dow only saw McDonalds (MCD), Coke (KO), and Disney (DIS) trade lower on the day as the benchmark closed near intra-day highs with the vast majority of components extending higher. Europe is also seeing a lot of green this morning with a winning session likely coming across the board despite an alarming drop in capital goods output by nearly 1% last month. 

 

Credit Markets:

Mortgage applications dropped by 3.7% just ahead of the busy buying season with rates ticking back to 2.7% as investors scramble to exit the safety of bonds to chase the allure of superior equity returns. 

 

Commodities:

Energy futures (/CL) are finally seeing some stability near $53.5 a barrel with OPEC’s monthly reporting totals indicating a surprise cutback in January. Further indications out of Saudi Arabia are also hinting at less than 10 million barrels of production a day expected throughout the month of March in an attempt to tighten supply. Gold Futures (/GC) have been trapped in a tight range as of late currently stuck near $1313 an ounce as the recently strong dollar stalls out somewhat in hopes of an imminent treaty. 

 

Pre-Market:

Inflationary worries were quickly put at ease this morning with CPI numbers coming in flat vs. a 0.1% rise projected. Delayed reporting of the Federal Budget due to the previous shutdown will also shed more light on government activity levels with a $-10.5 Billion deficit expected. Earnings will continue to catch headlines with a series of tech leaders coming after the bell. Volatility has continued its grind lower with a 15.50 print in the CBOE Volatility Index (VIX) indicating fresh four month lows.  

 

Major Economic Reports:

 

6:00 am CT - MBA Mortgage Applications

6:15 am CT – Raphael Bostic Speaks

7:30 am CT – CPI

7:50 am CT– Loretta Mester Speaks

9:00 am CT – Atlanta Fed Business Inflation Expectations

9:30 am CT – EIA Petroleum Status Report

1:00 pm CT – Treasury Budget

 

Notable Earnings:       

    

Wednesday  – 2/13:

A.M. – GG, DISH, GOLD, TEVA, WB

P.M. – AIG, CSCO, EFX, FOSL, MGM, YELP

 

Thursday  – 2/14:

A.M. – AZN, CME, GOOS, KO, WM

P.M. – AMAT, ANET, BIDU, CBS, CC, NVDA

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 12, 2019 - Market Blog

2/12/2019

 

Ho Hum….

 

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Equities

The S&P 500 (SPX) managed to eke out a slight gain yesterday with the help of some industrial companies.  Markets lacked conviction ahead of another round of trade negotiations between the U.S. and China, scheduled for later this week.  This showed itself in yesterday’s trading volume, marking the lowest level of the year so far.  Aluminum parts maker, Arconic (ARNC) and railroad company, Norfolk Southern (NSC) both rose more than 2%.  The communication sector was the biggest drag on the overall market, with the group losing 0.6%.  Video game companies, Activision Blizzard (ATVI) and Take-Two Interactive (TTWO) fell 7.6% and 3.8%, respectively.   On the day, the Dow Jones Industrials ($DJI) fell 0.2% to 25053.11, the Nasdaq Composite (COMP) rose 0.1% to 7307.90, and the S&P 500 (SPX) gained less than 0.1% to 2709.80.

 

Credit Markets:

Treasury yields rose as the U.S. and China were set to start a new round of negotiations this week.  After four consecutive declines,  the yield on the benchmark 10yr. Treasury note rose to 2.661%, from a rate of 2.632% on Friday.

 

Commodities:

A rising dollar and U.S. Treasury yields sent Gold and Oil prices lower yesterday.  Gold futures (/GC) fell 0.5% to $1,311.90 a troy ounce.  After dropping almost 5% last week, crude oil picked up where it left off.  U.S. crude oil futures (/CL) ended the day down 0.6% to settle at $52.41 per barrel.

  

Pre-Market:

U.S. equity futures are higher this morning after a tentative agreement on border security to avert another government shutdown.  Asian equities were mostly higher overnight, with Japan gaining over 2.5%.  The JOLTS report out at 9:00 a.m. CT will be the highlighted  economic report today.  As of this writing, U.S. crude oil futures (/CL) are 3% higher near $54 per barrel and S&P 500 futures (/ES) are 0.6% higher near 2727.

  

Major Economic Reports:

5:00 am CT –   NFIB Small Business Optimism Index

7:55 am CT   Redbook

9:00 am CT–   JOLTS

10:00 am CT – 4-Week and 8-Week Bill Announcement

11:45 am CT – FOMC Chairman Powell speaks

4:30 pm CT  Esther George Speaks

5:30 pm CT –   Loretta Mester Speaks

 

Notable Earnings:

Tuesday – 2/12:

A.M.SHOP, UA, UAA,

P.M. – AKAM, ATVI, OXY, TWLO

Wednesday – 2/13:

A.M. – GG, DISH, GOLD, TEVA, WB

P.M. – AIG, CSCO, EFX, FOSL, MGM, YELP

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 11, 2019 - The Week Ahead

TradeWise – The Week Ahead

February 11, 2019

 

Equities are attempting to shake off last week’s slump with early indications of a modestly stronger open.  Last week ended with the S&P 500 (SPX) only managing a meager 0.05% gain to finish at 2706.  Utilities and Technology were the two major bright spots with energy, materials, and financials holding the index in check. Chinese markets are pressing higher by nearly 1% after reconvening following an extended holiday break off hopes that today’s trade meeting can finally bring some resolution to the long-standing contention ahead of a key March 1st tariff deadline.  Europe is seeing a similar 1% gain collectively in a strong showing with all major sectors opening higher despite seeing Britain’s GDP slip to only 0.2% growth over the last quarter to revisit 2012 lows. 

 

The likelihood of another U.S. government shutdown increased over the weekend with contentious debate around immigrant detention policy ongoing with the clock ticking. Energy prices (/CL) continue to show little sign of a rebound with nearly another 1% being erased ahead of the open to add to last week’s route.  A surprise back to back weekly increase in Friday’s rig count indicates that domestic production will continue to stretch to record levels at a time where consumption questions remain should the shutdown materialize.  Gold Futures (/GC) are retracting closer to $1300 an ounce as the liquidity around the U.S. dollar draws interest as the Greenback touched its highest level since the beginning of the year. 

 

Economic activity will start out extremely light this week with nothing major on the calendar due until tomorrow’s JOLTs report. Consumer Price Index (CPI) and Producer Price Index (PPI) will also be revealed mid-week to better understand how the Fed’s recent actions have influenced inflation. Retail Sales will be shooting for its third straight increase after a slip-up late last year. Consumer sentiment will conclude up the rear on Friday. This week also marks the last push of earnings this quarter with nearly 50 S&P 500 components on standby to report. 

 

Major Earnings for the Upcoming Week:

 

Monday:

A.M. –  N/A

P.M. –  N/A

 

Tuesday:

A.M.SHOP, UA, UAA,

P.M. – AKAM, ATVI, OXY, TWLO

 

Wednesday:

A.M. – GG, DISH, GOLD, TEVA, WB

P.M. – AIG, CSCO, EFX, FOSL, MGM, YELP

 

Thursday:

A.M. – AZN, CME, GOOS, KO, WM

P.M. – AMAT, ANET, BIDU, CBS, CC, NVDA

 

Friday:

A.M. – DE, PCG, PEP,YNDX

P.M. – N/A

 

Economic Releases (2/11-2/15):

 

Monday:

10:30 am CT – 3-Month & 6-Month Bill Auction

 

Tuesday:

8-Week Bill Settlement

5:00 am CT – NFIB Small Business Optimism Index

7:55 am CTRedbook

9:00 am CT – JOLTS

10:00 am CT – 4-Week and 8-Week Bill Announcement

11:45 am CT – FOMC Chairman Powell speaks

5:30 pm CT – Loretta Mester Speaks

6:30 pm CTEsther George Speaks

 

Wednesday:

6:00 am CT - MBA Mortgage Applications

6:15 am CT – Raphael Bostic Speaks

7:30 am CT – CPI

7:50 am CTLoretta Mester Speaks

9:00 am CT – Atlanta Fed Business Inflation Expectations

9:30 am CT – EIA Petroleum Status Report

1:00 pm CT – Treasury Budget

 

Thursday:

7:30 am CT – Jobless Claims

7:30 am CT – PPI

7:30 am CT – Retail Sales

9:00 am CT – Business Inventories

9:30 am CT–- EIA Natural Gas Report

10:00 am CT - 3-Month & 6-Month Bill Announcement

10:00 am CT – 2-Yr FRN Note Announcement

10:00 am CT – 30-Yr TIPS Announcement

10:30 am CT – 4-Week and 8-Week Bill Auction

3:30 pm CT – Fed Balance Sheet

3:30 pm CT - Money Supply

 

Friday:

7:30 am CT – Empire State Mfg. Survey

7:30 am CT – Import and Export Prices

8:15 am CT - Industrial Production

8:55 am CTRaphael Bostic Speaks

9:00 am  CT – Consumer Sentiment

12:00 pm CT – Baker-Hughes Rig Count

 

*Follow us on Twitter @TradeWise

 

*BOLD above indicates important and potential market-moving news and information

                                                   

TradeWise is offering a free trial for 2 trading strategies for 60 days each: Use coupon code marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog and Weekend Update by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

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Feb 08, 2019 - Market Blog

2/08/2019

 

No meeting for You!

 

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Equities

Early on in the session yesterday, U.S. equities followed Europe lower White House economic adviser Larry Kudlow said the U.S. and China are still far away from a trade deal. Later on, a White House official said that President Trump is “highly unlikely” to meet with Chinese President Xi before the March 1st tariff truce expiration.  Trade sensitive stocks, Boeing (BA), Caterpillar (CAT), and Intel (INTC) all fell approximately 1% on the news.   Concern of a global slowdown have been rekindled after data showed growing weakness in both China and the Eurozone.   With the British economy suffering under the strain of Brexit, the Bank of England decided to hold interest rates steady yesterday and cut its outlook for economic growth.  On the day, the Nasdaq Composite (COMP) dropped 1.2% to 7288.35, the Dow Jones Industrials ($DJI) slid 0.9% to 25169.53, and the S&P 500 (SPX) lost 0.9% to 2706.05.

 

Credit Markets:

Treasury yields fell with equities after the European Union cut its economic growth forecast to1.3% for 2019 from a previous forecast of 1.9%.  The yield on the benchmark 10yr. Treasury note settled at 2.652%, from a rate of 2.702% on Wednesday.

 

Commodities:

Renewed worries that a global slowdown could reduce demand for oil sent energy prices lower.  Crude oil prices have fallen in three of the past four sessions, to their lowest level since January 28th .  U.S. crude oil futures (/CL) ended the day down 2.5% to settle at $52.64 per barrel.

  

Pre-Market:

U.S. equity futures are lower after a report surfaced that President Trump is preparing to sign an executive order to ban Chinese telecom equipment from U.S. wireless networks.  Economic reports are slim today, with the Baker Hughes Rig Count at 12:00pm CT the only report of significance.   As of this writing, U.S. crude oil futures (/CL) are 0.2% higher near $52.70 per barrel and S&P 500 futures (/ES) are 0.5% lower near 2690.

  

Major Economic Reports:

12:00 pm CT – Baker-Hughes Rig Count

 

Notable Earnings:

Friday – 2/08:

A.M. – ARNC, CBOE, CLF, COTY, HAS, PCG, PSX, CCJ

P.M. –  N/A

Monday – 2/11:

A.M. – N/A

P.M. – VIPS

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 07, 2019 - Market Blog

1/07/2019

 

Snapping a Winning Streak…. 

 

Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days -email support@tradewise.com or call 877.733.6786*

 

Equities

 

U.S. Equities (/ES) are slipping pre-market after the European Commission slashed growth projections for the remainder of the year. Meanwhile, the Bank of England held interest rates steady ahead of a rapidly approaching separation with no plan yet in place. Weaker than expected economic data out of Germany further soured the recent optimism after a 4th straight decline came in industrial output. The S&P 500 (SPX) snapped a five day winning streak yesterday amid a mixed bag of earnings to end at 2731. The tech-heavy Nasdaq Composite (COMP) also logged its first losing session this week with a closing price of 7375 after stalling out from the recent red-hot run. Volatility is showing some life this morning with a 5% jump in the CBOE Volatility Index (VIX) back above 16 after carving out 3 mo. lows in the session prior. 

 

Credit Markets:

 

Weekly jobless claims just came in at 234K vs. 221K expected in likely carry-over from the extended government shutdown which may again rear its ugly head with a looming deadline coming on the 15th. Treasury yields have slipped as a result near 2.675%, likely as a natural reaction to the sell-off in equities. 

 

Commodities:

 

Oil Futures (/CL) are coming under some pressure early on with a 1.5% drop dragging crude near $53 a barrel after the EIA report indicated an inventory climb by 1.3 million barrels at the end of January.  Domestic production remains at record levels near 12 million barrels per day to put the United States in the driver’s seat as the world’s largest producer. Gold Futures (/GC) are struggling near a one week low with the precious metal fighting to stay above the $1313 level after touching nine month highs as recently as this week not helped by a surging dollar.   

 

Pre-Market:

 

A barrage of earnings along with a mammoth-sized merger between BB&T and SunTrust Bank have done little this morning to move futures off double-digit lows. Fed speak will be on tap today with multiple engagements scheduled in the aftermath of the surprisingly dovish FOMC meeting at the end of January.  Consumer Credit and Money supply will be the other economic items of import in today’s session with nothing else expected to close out the week. 

 

Major Economic Reports:

 

7:30 am CT –  Jobless Claims

9:30 am CT –  EIA Natural Gas Report

10:30 am CT – 4-Week and 8-Week Bill Auction

12:00 pm CT – 30-Yr Bond Auction

2:00 pm CT –   Consumer Credit

3:30 pm CT –  Fed Balance Sheet

3:30 pm CT -   Money Supply

6:30 pm CT –  James Bullard Speaks

 

Notable Earnings:       

     

Thursday – 2/07:

 

A.M. – CAH, FCAU, GOOS, GRUB, GT, MPC, PM, SPGI, TMUS, TSN, TWTR, YUM

P.M. – EXPE, FTV, MAT, MT, SKX, SYNA

 

Friday – 2/08:

 

A.M. – ARNC, CBOE, CLF, COTY, HAS, PCG, PSX, CCJ

P.M. – N/A

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 06, 2019 - Market Blog

2/06/2019

 

 

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Equities

Stronger than expected earnings from some consumer discretionary companies help lead the S&P 500 (SPX) to its fifth consecutive higher session.  Beauty products maker Estee Lauder (EL) and fashion house Ralph Lauren (RL) rose 12% and 8.4%, respectively after strong quarterly results. Google parent Alphabet (GOOG) also rose 0.9% to 1151.87 despite incurring rising costs.  After fears of slowing U.S. growth and tariffs, investors came into 2019 with low expectations for the current earnings season.  Better or ‘not so bad’ results have helped fuel the recent rally.  After suffering its biggest annual loss in a decade last year, the S&P 500 (SPX) is up over 9% since the beginning of the year.  On the day, the Dow Jones Industrials ($DJI) rose 0.7% to 25411.52, the Nasdaq Composite (COMP) gained 0.7% to 7402.08, and the S&P 500 (SPX) added 0.5% to 2737.70.

 

Credit Markets:

U.S. Treasury yields fell yesterday after a report showed signs of slowing growth in the services sector.  Slipping yields fell further, after the Institute of Supply Management (ISM) said the index fell to 56.7 in January from a reading of 58 in December.  The yield on the 10yr. Treasury note settled at 2.702% versus 2.724% on Monday.

 

Commodities:

Oil prices finished lower yesterday, hurt by a stronger dollar.  Traders will be looking closely at today’s EIA Petroleum Status Report for clues on direction.  U.S. crude oil futures (/CL) fell 1.6% to $53.66 per barrel.  U.S. crude is up 20% since the beginning of the year, but still 30% lower from its highs of early October.

 

Pre-Market:

In the pre-market following earnings, Disney (DIS) is up over 1% near $114 and Snap (SNAP) is 21% higher after the company narrowed its loss and delivered record fourth quarter revenue.  As of this writing, U.S. crude oil futures (/CL) are 0.6% lower near $53 per barrel and S&P 500 futures (/ES) are unchanged near 2731.

 

Major Economic Reports:

 

6:00 am CT -    MBA Mortgage Applications

7:30 am CT –   International Trade

7:30 am CT –   Productivity and Costs

9:30 am CT –   EIA Petroleum Status Report

12:00 pm CT – 10-Yr Note Auction

6:00 pm CT –   Jerome Powell Speaks

 

Notable Earnings:       

    

Wednesday  – 2/6:

A.M. – BSX, CMI, CTSH, GM, HUM, LLY, REGN, TTWO

P.M. – CMG, EFX, FEYE, IRBT, MET, NOV, NXPI

 

Thursday  – 2/7:

A.M. – CAH, FCAU, GOOS, GRUB, GT, MPC, PM, SPGI, TSN, TWTR, YUM

P.M. – EXPE, FTV, MAT, MT, SKX, SYNA, TMUS

 

 

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Feb 05, 2019 - Market Blog

2/05/2019

 

State of The Union!   

 

Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days -email support@tradewise.com or call 877.733.6786*

 

Equities

 

U.S. stocks (/ES) are inching higher once again this morning ahead of the opening bell after a robust start to the week in all major indices.  All eyes will be fixated on President Trump’s delayed State of The Union Address later tonight to decipher what progress is being made on the trade front with China.  Expectations are high that a state of Emergency may likely be declared surrounding the building of the long-promised  border wall which would certainly create more partisan divide along with additional legal red-tape. Much of Asia remained closed today ringing in the Lunar New Year with the exception of Japanese Nikkei which reached a 7 week high earlier in the session before a slight pull-back ensued.  European markets just solidified an even more impressive nine-week high with a strong quarterly earnings display from several bellwethers to capture nearly 1% on the session.   

 

Credit Markets:

 

U.S. Treasury yields are dipping slightly near the 2.718% range ahead of today’s pivotal speech for the first drop in the month of February so far. New that President Trump and Chairman Powell met informally to discuss the economy ended with a muted effect.  Today will see new 3- year notes auctioned off to the tune of $38 billion. 

 

Commodities:

 

Iron Ore surged 14% at the end of last week to capture a fresh 2 year high after spillover from a Brazilian mine has created havoc on production in that region. Energy prices are showing some weakness with the $54 a barrel level currently being tested in crude (/CL) after a surprising factory order miss by nearly 1% questioning future utilization needs.  British Petroleum (BP) saw nearly a 65% jump in profit compared to the year prior which catapulted shares by nearly 5% as several energy stocks have flourished as of late. 

 

Pre-Market:

 

Volatility has reached a 4-month low as the CBOE Volatility Index (VIX) dips to 15.66 for a 6th straight likely session lower. Both services PMI and ISM Non-Manufacturing number will be released shortly after the open to assess how the Government shutdown affected general business conditions over the previous month. 

 

Major Economic Reports:

 

8-Week Bill Settlement

7:55 am CT –  Redbook

8:45 am CT –  PMI Services Index

9:00 am CT –  ISM Non-Mfg. Index

10:00 am CT – 4-Week and 8-Week Bill Announcement

12:00 pm CT – 3-Yr Note Auction

 

Notable Earnings:       

   

Tuesday – 2/7:

 

A.M–    ADM, BDX, BP, EMR, LITE, RL, VIAB

 

P.M.–   APC, DATA, DIS, EA, PAA, SU, SWKS

 

Wednesday  – 2/8:

 

A.M. –  BSX, CMI, CTSH, GM, HUM, LLY, REGN, TTWO

 

P.M. – CMG, EFX, FEYE, IRBT, MET, NOV, NXPI

 

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**BOLD above indicates important and potential market-moving news and information

 

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Feb 04, 2019 - The Week Ahead

TradeWise – The Week Ahead

February 4, 2019

 

The Dow Jones Industrials ($DJI) closed higher on Friday to mark its sixth consecutive week of gains.  The blue chips were buoyed by a strong January non-farm payrolls report, and big gains from energy giants, Exxon Mobil (XOM) and Chevron (CVX).  Slowdown fears have been eased by better than expected corporate earnings reports, strength in the labor market, and a less hawkish Fed.  The Nasdaq Composite was weighed down by a big decline from online retailer, Amazon (AMZN).  The shares fell 5.4% to $1626.23, after the company warned that its spending is likely to increase this year.   In the credit market, the yield on the benchmark 10yr. Treasury note (TNX) rose to 2.690% on Friday, versus 2.631% on the prior day.  U.S. crude oil gained 2.7% to $55.26 per barrel.  Last Friday, the Dow Jones Industrials ($DJI) gained 0.3% to 25063.89, the Nasdaq Composite (COMP) lost 0.2% to 7263.87, and the S&P 500 (SPX) added 0.1% to 2706.53.  All three indices ended up at least 1.3% for the week.

 

Earnings season will continue to roll on, with just over half of the S&P 500 still due to report for the prior quarter.  The economic calendar will be somewhat light, with the market focusing on PMI and ISM numbers and President Trump’s State of the Union address Tuesday.   This afternoon,  tech giant Alphabet (GOOG, GOOGL) is scheduled to release their quarterly earnings.   As of this writing, U.S. Crude oil futures (/CL) are 2% lower near $54 per barrel, and S&P 500 futures (/ES) are unchanged near 2704.

 

   

 

Major Earnings for the Upcoming Week:

Monday:

A.M. –  ALXN, AMGN, CLX, SYY

P.M. –  GILD, GOOG, GOOGL, HIG, OLN, STX

 

Tuesday:

A.M.– ADM, BDX, BP, EMR, LITE, RL, VIAB

P.M. – APC, DATA, DIS, EA, PAA, SU, SWKS

 

Wednesday:

A.M. – BSX, CMI, CTSH, GM, HUM, LLY, REGN, TTWO

P.M. – CMG, EFX, FEYE, IRBT, MET, NOV, NXPI

 

Thursday:

A.M. – CAH, FCAU, GOOS, GRUB, GT, MPC, PM, SPGI, TSN, TWTR, YUM

P.M. – EXPE, FTV, MAT, MT, SKX, SYNA, TMUS

 

Friday:

A.M. – ARNC, CBOE, CLF, COTY, HAS, PCG, PSX, CCJ

P.M. – N/A

 

Economic Releases (2/4-2/8):

 

Monday:

9:00 am CT –   Factory Orders

11:00 pm CT – Motor Vehicle Sales

11:30 am CT – TD Ameritrade IMX

6:30 pm CT –   Loretta Mester Speaks

 

Tuesday:

8-Week Bill Settlement

7:55 am CT –  Redbook

8:45 am CT –  PMI Services Index

9:00 am CT –  ISM Non-Mfg Index

10:00 am CT – 4-Week and 8-Week Bill Announcement

12:00 pm CT – 3-Yr Note Auction

 

Wednesday:

6:00 am CT -    MBA Mortgage Applications

7:30 am CT –   International Trade

7:30 am CT –   Productivity and Costs

9:30 am CT –   EIA Petroleum Status Report

12:00 pm CT – 10-Yr Note Auction

6:00 pm CT –  Jerome Powell Speaks

 

Thursday:

7:30 am CT –  Jobless Claims

9:30 am CT –  EIA Natural Gas Report

10:30 am CT – 4-Week and 8-Week Bill Auction

12:00 pm CT – 30-Yr Bond Auction

2:00 pm CT –   Consumer Credit

3:30 pm CT –  Fed Balance Sheet

3:30 pm CT -   Money Supply

6:30 pm CT –  James Bullard Speaks

 

Friday:

12:00 pm CT – Baker-Hughes Rig Count