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Sep 19, 2018 - Market Blog

9/19/2018

 

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U.S. equity markets rose as the latest round of tariff volleys was seen as less harsh than expected.  Monday’s worldwide anticipatory selloff was reversed as traders viewed the staggered introduction of the tariffs, and the muted response by China as a positive sign.  Late Monday, the White House announced new tariffs on $200 billion of Chinese goods.  The imports will be taxed at a rate of 10% initially, and go into effect next Monday.  The new levy includes the likes of luggage and seafood, and is expected to rise to 25% by the end of 2018.  The positive market response came as investors expected an initial tariff rate of 25%.  China responded with plans for tariffs on an additional $60 billion of U.S. goods.  Netflix (NFLX) rallied 4.9% to $367.65, after the streaming service has a strong showing at the Emmy Awards, winning 23 statuettes.  Nike (NKE) was one of the strongest blue chips, gaining 2.4% after a survey showed that most had a positive view of the company after its controversial ad campaign featuring former NFL quarterback Colin Kaepernick.   On the day, the Nasdaq Composite (COMP) gained 0.8% to 7956.11, the Dow Jones Industrials ($DJI) rose 0.7% to 26246.96, and the S&P 500 (SPX) advanced 0.5% to 2904.31.

 

The move toward riskier assets sent the 10yr. Treasury yield (TNX) higher to settle at 3.048%, its highest level since May 22nd.  Another factor that has put downward pressure on Treasurys is the large amount of corporate debt being sold this week.  When investors look to purchase new bond issues, they will often sell Treasurys to make room in their portfolio or lighten up their exposure to rising interest rates.  Oil prices (/CL)  increased by 1.4% to $69.85 yesterday, as global tensions rose after Russia blamed Israel for the loss of one of its reconnaissance planes shot down by a Syrian defense system.

 

As of this writing, S&P 500 futures (/ES) are slightly lower near 2910, U.S. crude oil futures are slightly higher near $70 a barrel, and Gold futures (/GC) are 0.4% higher and trading near $1208 per troy ounce.

 

 

Major Economic Reports:

 

6:00 am CT – MBA Mortgage Applications

7:30 am CT – Housing Starts

7:30 am CT – Current Account

9:30 am CT – Oil Inventories

 

Notable Earnings:

  

Wednesday – 9/19:   

Before Market: N/A

After Market:    RHT

 

Thursday – 9/20:

Before Market:  N/A

After Market:     MU

 

*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

Sep 18, 2018 - Market Blog

9/18/2018

 

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Equity futures (/ES) are showing more resilience this morning after fighting back from overnight lows to turn positive. Trump’s latest announcement of yet another round of $200 billion in tariffs on Chinese goods sparked initial panic as details emerged.  The initial 10% duty imposed will increase to 25% at the turn of the year as more pressure is being applied in an attempt to eventually gain compliance. The Chinese Shanghai responded with lows not seen in 4 years after plummeting 25% so far this year before rebounding nearly 2% with some type of retaliation still expected in the coming days. Volatility ($VIX) quickly spiked as a result just below the $14 range to close just a shade below the high of the day. 

 

The S&P 500 (SPX)  dropped back below 2900 to start out the week after giving up 16 points in yesterday’s session primarily off the new developments.  Surprisingly, the benchmark is still up in 3 of the last 5 sessions although the moves have been underwhelming just 1% below all-time highs. The Dow ($DJI) slumped just shy of triple-digit losses during the same period as Apple (AAPL) and McDonald’s (MCD) became the main scapegoats. The Nasdaq Composite (COMP) however has seen the most trouble as of late with a 2.6% deficit for the month so far with tech shares disappointing further. European markets are seeing minimal gains so far in the session with tech stocks reacting negatively to the renewed trade limitations set by the ongoing trade spat. ECB President Draghi recently finished his remarks in Paris with a challenge on the Eurozone to take a more calculated approach on shoring up their financial system with better insurance on deposits and a plea to boost lending efforts. He is slated to do an encore again tomorrow in Berlin.  

 

Energy is getting a nice 1% boost this morning as crude futures (/CL) inch closer to the $70 a barrel range ahead of an OPEC meeting scheduled over the weekend in Algiers. The 10 year treasury yield has extended back above 3% in anticipation of a $40 billion auction for four-week bills to capture a fresh 4 mo. high. Economic data will remain somewhat muted today with the exception of more housing data which is expected to log a 12 mo. low should the 66 forecasted level be realized. Long term purchase information is also slated for later this afternoon which registered a surprise $36 billion deficit in the month of August. 

 

Stock Stories:

FED EX (FDX)–Boxed In! – The global shipper saw higher hourly wages and bonuses take a bite out of earnings the previous quarter.  Last night’s quarterly report also stated that ill effects of a cyberattack on a subsidiary also dented expectations despite an impressive $16.88 billion in revenue being generated. Shares are down 3% pre-market as a wave of downgrades have begun to surface. 

 

Major Economic Reports:

 

7:55 am CT – Redbook

9:00 am CT – Housing Market Index

3:00 pm CT – TIC Long-Term Purchases

 

Notable Earnings:

  

Tuesday– 9/18:   

Before Market: AZO, GIS

After Market:  N/A

 

Wednesday – 9/19:

Before Market:  N/A

After Market:   RHT

 

*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

Sep 17, 2018 - The Week Ahead

TradeWise – The Week Ahead

September 17, 2018

 

U.S. equity markets managed  to post gains for the week, even with the ever present tariff cloud  hanging over their head.  Conflicting messages on the U.S / China trade front have investors scratching their head.  Last week reports surfaced that the U.S. was inviting China back to the negotiation table, but Friday saw an opposing report that President Trump wanted aides to proceed with tariffs on $200 billion of Chinese goods.  Technology stocks helped keep markets positive after a retreat the prior week.  The S&P 500  tech sector was able to rise 1.8% for the week, even with the downward pressure on Facebook (FB) and Google (GOOG) as regulatory scrutiny has intensified.  Apple (AAPL) introduced their new line of iPhones, which initially sent the shares lower, but the tech bellwether pressed on and ended the week up 1.1%.  The yield on 10yr Treasuries topped 3% for the first time since early August, which helped the financial sector advance 0.6%.   The rise in yields has occurred as solid U.S. economic data has continued and emerging market concerns have receded somewhat.   On the week, the S&P 500 (SPX) was up 1.2% to 2904.98, the Dow Jones Industrials ($DJI) added 0.9% to 26154.67, and the Nasdaq Composite (COMP) rose 1.4%.        

 

U.S crude oil prices rebounded on Friday, after a sharp drop on the prior day. Investors have reacted positively to the overall landscape of shrinking crude exports from Iran, strong global demand, and low U.S. inventories.  U.S. crude oil futures (/CL) rose 0.6% on Friday to $68.99,  and posted a 2% gain for the week.  Last Wednesday, the Energy Information Administration (EIA) reported that U.S. crude oil inventories dropped by 5.3 million barrels the prior week to their lowest level since 2015.

 

This week investors will have a few earnings announcements to focus on with the highlights being: FDX, ORCL, AZO, RHT and MU.  It’s likely that results will be positive, but the focus should be on next quarter’s guidance.  ECB President Mario Draghi will be speaking in Paris on Tuesday and Berlin on Wednesday.  It will be interesting what his comments are given the European equity markets are sitting near multi quarter lows.  U.S. housing data will be in focus as some key numbers are due out on Tuesday and Wednesday of this week.  As of this writing,  S&P 500 futures are 0.1% lower near 2908,  U.S. Crude oil futures (/CL) are 0.5% higher near $69 per barrel, and 30yr. Treasury bonds are 0.2% lower near 141’12.

 

Major Earnings for the Upcoming Week:

 

Monday:

A.M –  N/A

P.M.–  FDX, ORCL

 

Tuesday:

A.M.–  AZO

P.M.– N/A

 

Wednesday:

A.M. – N/A

P.M. –RHT

 

Thursday:

A.M. –N/A

P.M. –MU

 

Friday:

A.M.–  N/A

P.M. –N/A

 

Economic Releases (9/17– 9/21):

 

Monday:

7:30am CT-      Empire State Mfg. Survey

10:30 am CT – 3mo and 6 Mo. Bill Auction              

                                                                                                                                                                

Tuesday:

7:55 am CT – Redbook

9:00 am CT – Housing Market Index

3:00 pm CT – Treasury International Capital

 

Wednesday:

6:00 am CT – MBA Mortgage Applications

7:30 am CT – Housing Starts

7:30 am CT – Current Account

9:30 am CT – Oil Inventories

 

Thursday:

7:30 am CT – Weekly Jobless Claims

7:30 am CT – Philadelphia Fed Business Outlook

9:00 am CT – Leading Indicators

9:30 am CT – Natural Gas Report

3:30 pm CT – Fed Balance Sheet/ Money Supply

 

Friday:

8:45 am CT – PMI Composite FLASH

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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Sep 14, 2018 - Market Blog

9/14/2018

 

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U.S. equities (/ES) are tracing slightly higher again this morning ahead of the open. The S&P 500 (SPX) reverted back to positive territory in September yesterday along with the Dow ($DJI) after a 0.5% jump. The Nasdaq Composite (COMP) still remains lower by 1.2% since the turn of the new month after an earlier selloff in tech. Emerging markets have seen some stability return towards the later part of this week after aggressive action was taken from both Russia and Turkey to hike interest rates on their respective currencies. The greenback has reversed lower all week at a rate not seen since early February as turmoil has continued to plague fledgling economies. The British Pound grinded to a 6 week high after better economic prospects were shared during the latest ECB meeting although no change in monetary policy was expressed. China is the only Asian country showing weakness to close out the week after some economic softness was seen in August data. Asset Investment growth in the world's 2nd largest economy hit a low point of 2018 which has sparked some concerns from economists. Excitement over the potential of renewed trade discussions have helped to buoy global markets over the past few sessions with nothing yet confirmed. The CBOE Volatility Index (VIX) has gradually declined all week with a $12 reading becoming likely in today’s session to notch the lowest levels so far in September. 

 

Oil is pushing for a weekly gain of nearly 1.7% despite a major setback in yesterday’s session with Crude (/CL) hovering near the $69 level. OPEC saw output climb by 420,000 bpd in August as a sure sign that participating nations have boosted output levels. Gold Futures (/GC) are attempting to finish the week higher for the first time over the last three as the softening dollar has brought some new life into the struggling asset class to finally pop back above $1200 an ounce after its fall from grace since early April. 

 

A string of data will be shared throughout the morning with preliminary retail sales already posted. U.S. retail saw its smallest gain in 6 months as investors have tightened their purse strings on major purchases. U.S. import data also just posted its largest drop in the last 18 months at 0.2%, as the strong dollar helped to curb any inflationary pressure from the ongoing trade drama. The yield on the 10-year has continued to trickle up now just a shade under 3% in anticipation of a rate hike later this month. Hurricane Florence continues to be monitored closely despite a downgrade in the overall status of the storm as it currently makes landfall to assess the longer-term economic impact of the region. Another monster typhoon also has its sights on both the Philippines and Hong Kong right at peak harvest season which can further complicate the recent troubles in the ongoing export battle.  

 

Stock Stories:

Adobe  (ADBE) – Picturesque! –Software maker, Adobe saw $2.29 billion in revenue generated over the last quarter which was a 24% jump from the same time last year. Net income topped $666 million which was well ahead of analyst estimates.  A major shift from product purchases to a subscription model has helped to accelerate growth over the past few years. Shares are currently trading near yesterday’s close despite a projected market maker move of =/- $9.00 and several analyst price target raises overnight. 

 

Major Economic Reports:

7:30 am CT – Retail Sales

7:30 am CT – Import/Export Prices

8:15 am CT – Capacity Utilization Rate/ Industrial Production  

9:00 am CT – Business Inventories

9:00 am CT – Consumer Sentiment

12:00 pm CT – Baker-Hughes Rig Count

  

Notable Earnings:   

 

Friday – 9/14:   

Before Market:  PLAY

After Market:  N/A

   

Monday – 9/17:

Before Market:  N/A

After Market: FDX,ORCL

 

 *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

 

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

Sep 13, 2018 - Market Blog

09/13/2018

 

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

 

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U.S. equity markets were lower for much of yesterday morning as lingering trade worries have weighed on markets.  Mid-day, equities jumped from their lower levels after the Wall Street Journal reported that the U.S. had reached out to China to initiate a new round of trade talks.  As quickly as stocks moved into positive territory, they retreated back to levels prior to the announcement.  The release became a tone change for trade sensitive sectors and consumer staples.  Metals posted gains after the news, with Copper (/HG) gaining over 2%.   Yesterdays, PPI number showed that business prices had their first monthly decline in about eighteen months.  There has been a worry about higher costs, and that has weighed on the consumer staple sector.   That sector rose 1.3% which helped lift the S&P 500 (SPX) despite a drop in financial stocks.   A decline in semiconductor  stocks continued with Goldman Sachs downgrading the semiconductor equipment group and lowering their rating on Micron Technology (MU) from buy to neutral.  On the day, the S&P 500 (SPX) gained slightly to 2888.92, the Dow Jones Industrials ($DJI) rose 0.1%, and the tech heavy Nasdaq Composite (COMP) dropped 0.2% to 7954.23.

 

Oil prices  continued to surge as the U.S. reported a decline in both oil production and stored inventories.  In addition,  other factors such as Hurricane Florence and tightening global oil supplies due to the U.S. sanctions on Iran have been contributing to a rise in prices.  U.S. crude oil futures (/CL) for October delivery closed up 1.6% at $70.37 per barrel.  U.S. Treasuries moved higher yesterday after a solid 10yr. auction and a weaker than expected inflation reading.  The yield on the 10yr Treasury note (TNX) settled at 2.963% compared with 2.979% on Tuesday.

 

U.S. Jobless Claims and the Consumer Price Index were both released this morning at 7:30 CT.  Jobless claims fell for the second straight week to 204,000 for the week ending September 8th.  Economists were looking for  210,000.  This marks the lowest level since December 1969.  Consumer prices rose for the fifth straight week, but the pace of the annual increases eased for the first time this year.  As of this writing, Gold futures (/GC) are 0.4% higher at 1216 per troy ounce,  U.S. oil futures (/CL) are 1.3% lower near $69 per barrel and S&P 500 futures are 0.4% near 2899.

 

 

Stock Stories:

Apple  (AAPL) –Is bigger better? – The tech giant released their much anticipated new line of iPhones yesterday.  The lineup was both bigger and more expensive.  Apple bumped up the price of its highest end phone by $100 with the introduction of the $1099 iPhone XS Max.  While originally up after the announcement, the shares closed down $2.78 at $221.07.

 

Major Economic Reports:

7:30 am CT – Consumer Price Index

7:30 am CT – Weekly Jobless Claims

9:00 am CT –  FOMC Member Quarles speaks

9:30 am CT –  Natural Gas Inventories

12:00 pm CT– FOMC Member Bostic speaks

12:00 pm CT– 30 Year Bond Auction

3:30 pm CT –  Fed Balance Sheet/ Money Supply

  

Notable Earnings:   

 

Thursday – 9/13:   

 

Before Market:  KR

 

After Market:     N/A

   

Friday – 9/14:

 

Before Market:   PLAY

 

 After Market:    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

 

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

Sep 12, 2018 - Market Blog

09/12/2018

 

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

 

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Equity markets (/ES) have alternated between positive and negative territory overnight in a likely display of little conviction overall ahead of today’s opening bell. Tuesday snapped a two-day decline with a triple digit reversal in the Dow Jones ($DJI)  bringing some relief. Telecoms and Energy both surged over 1% intra-day to drive the S&P 500 (SPX) back to the 2887 level. Volatility contracted to the $13 level in the CBOE Volatility Index (VIX) to return to its 30 day average after a temporary spike late last week. The Chinese Shanghai just hit a 31 month low overnight which pulled the entire region lower as escalation around a WTO complaint further validates continual trade tensions with the United States. Europe is trending modestly higher today despite the lagging effects of no Brexit agreement on the horizon with major deadlines still looming.  The delay has prompted some to consider forcing Prime Minister Theresa May from office with a possible “No Confidence” vote. The European Central Bank will be meeting tomorrow near the market open.   A press conference will follow to enlighten investors on any real updates around their ongoing monetary policy although a rate hike is not anticipated for some time in a further de-coupling with U.S. markets.

 

The Bureau of Labor Statistics just released the August Producer Price Index (PPI) which came in at a negative -0.1% to represent no inflationary growth now over the last two months. This is the first actual drop over the last 18 months which was spurred by cheaper food and service prices to nullify energy costs. Crude Inventories will also be carefully watched mid-morning with an -1.3 million drawdown widely expected. This would mark a 4th consecutive weekly deficit which may also fluctuate greatly depending on the repercussions of Hurricane Florence scheduled to make landfall later this week. Crude Futures (/CL) have just regained the $70 a barrel level for the first time since early July. 

 

Investor’s eagerly await today’s Apple (AAPL) IPhone launch event with a higher price tag expected for a potentially larger screen.  Other product upgrades may also be shared as the company  has seen a 1% jump so far this week in anticipation.  Bond yields on the 10 year are hovering near 2.964% ahead of a combination of  Fed speak and the Beige book later this afternoon.  Weekly mortgage data came in disappointing earlier this morning as rates stretched to a five week high. Refinances revisited a snail pace not seen since 2000 with little incentive for burrowers to make any adjustments in the current environment.  No earnings of consequence are expected through the remainder of the week. 

 

Stock Stories:

Intel Corp (INTC) –Death Cross? – The chip maker just captured its 6th consecutive losing session yesterday to slip into bearish territory for the 1st time in 2 years. An 18 year high of $57.08 was tapped on June 1st before plummeting over 20% since.  INTC became the Dow’s worst performer on Tuesday with a 3% setback.  Others in the space are experiencing similar weakness as of late despite robust economic growth being touted overall. 

 

Major Economic Reports:

6:00 am CT – MBA Mortgage Applications

7:30 am CT – PPI

9:00 am CT – Atlanta Fed. Business Inflation Expectations

9:30 am CT – Oil Inventories

11:45 am CT – FOMC Member Brainard speaks

12:00 pm CT – 10 Year Bond Auction

1:00 pm CT – Beige Book

  

Notable Earnings:   

 

Wednesday – 9/12:   

 

Before Market:  N/A

 

After Market:  N/A

   

Thursday – 9/13:

 

Before Market:  N/A

 

 After Market:  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

 

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

Sep 11, 2018 - Market Blog

9/11/2018

 

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

 

**Check out the NEW TD Ameritrade Network on the TOS platform or at https://tdameritradenetwork.com/ for financial news**

 

U.S. equities opened at their highs, and gave up ground shortly thereafter.  With second quarter earnings largely behind us, investors are looking towards economic data for guidance.  This week reports on producer prices, consumer prices and retail sales will be watched closely.  It has been 53 trading days since the S&P 500 (SPX) has had a 1% move in either direction.  The current streak is the longest since January.  The last such move occurred on June 25th as trade fears were fresh in the psyche of global markets.   The technology sector rebounded, after posting its largest one week loss since March.   Chip makers, Advanced Micro Devices (AMD) and  Nvidia (NVDA) gained 9.2% and 1.1%, respectively.   On the flip side, tech giant, Apple (AAPL)  continued its fall from an all-time high of $229.67 on September 5th.  The shares dropped $2.97 or 1.3% to finish the day at $218.33.   Nike (NKE) rose 2.2% to $82.10, after Webush raised their price target.  The shares have almost regained all of their losses following the announcement of a controversial ad campaign featuring former San Francisco 49ers quarterback, Colin Kaepernick, just a week ago.         

 

Overseas, the Stoxx Europe 600 rose 0.5% as investors became optimistic about a new budget that the new Italian government is set to pass in September.  This sent Italian bonds higher, and pushed the Italian FTSE MIB up 2.3%.  Increasing trade tensions between the U.S. and China, sent Asian markets lower.  The Shanghai Composite and Hong Kong’s’ Hang Seng both fell more than 1%.  U.S. Crude oil futures (/CL) settled at $67.54 a barrel marking their fourth consecutive drop.  Oil prices are 12% higher on the year, but well off their multiyear high of $74.15 a barrel.  

 

Economic reports should be relatively light today, with the Jolts report at 9:00am being the focus.  As of this writing,  S&P 500 futures (/ES) are 0.3% lower near 2871, U.S. Crude oil futures (/CL)are slightly higher near $67.50 per barrel, and Gold futures are 0.4% lower near $11.95 per troy ounce

 

Stock Stories:

 

Home Depot (HD) – Storm Surge!  – The home improvement retailer surged to a new 52 week high of $211.62, as Hurricane Florence sets its sights on the Carolina coast.  The sharp demand for plywood and storm related supplies has been a boost for the company as the strong Category 4 hurricane looks to make landfall at the end of this week.   

 

Major Economic Reports:

 

5:00 am CT – NFIB Small Business Optimism Index

7:55 am CT – Redbook

9:00 am CT – Jolts

9:00 am CT – Wholesale Trade  

 

Notable Earnings:   

Tuesday – 9/11:   

Before Market:   FRAN

After Market:      N/A

   

Wednesday– 9/12:

Before Market:   N/A

After Market:      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

 

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

 

Sep 10, 2018 - The Week Ahead

TradeWise – The Week Ahead

September 10, 2018

 

Equity markets are attempting to finally snap out of its recent funk with the S&P 500 (SPX) shedding 1% over the course of last week. The Nasdaq Composite (COMP) took even a greater hit with a 2.6% reversal coming as profit taking among several of its leaders intensified. The fall eventually became tech’s biggest glitch since the March timeframe. Dow components ($DJI)  saw better results with the index notching three straight wins to close out last week at the 25916 point as investor's looked for a safer retreat. Global markets have somewhat coupled with Asia drifting lower despite Japan reporting a GDP surprise jump to 3%. China also saw a record $31.1 Billion trade surplus last month with the United States in August despite the backlash of continual tariff increases looming on almost every product at this rate. Overall, a 15% jump y/y has materialized up tothis point coming as a major surprise. The Shanghai Index dropped in excess of 1% to re-visit 2016 lows. Russia is now seeing its ruble slip to its lowest level since March of 2016 with a potential for a rate cut coming this Friday. Europe is experiencing a more promising start with markets generally higher amid renewed trade discussions between the European Union and the U.S. today taking place.

 

Interest rates are soaring to 2.937% on the 10 year to hit its highest levels over the last month as investors continue to price in a likely rate hike cemented later this month especially factoring in the blowout employment report on Friday. Gold Futures (/GC) are slipping for a 2nd straight session now convincingly below the $1200 an ounce mark as the strengthening dollar minimizes the likelihood of any major recovery over the near-term. The precious metal in now down a staggering 8% for the year. Energy prices (/CL) will try to get back on track today after falling in every single session last week to end near $68 a barrel. Weekly rig counts discovered that two more rigs were shifted offline as the trend has begun to stall out since mid-year right at record production levels. The industry is gearing up for an Iranian embargo scheduled to take effect later next month which may drive demand higher in order to compensate for the shortfall. 

 

Economic news will be on the lighter side today with the exception of consumer credit expectations being projected near $14 billion in July. TD Ameritrade will also be releasing the monthly IMX index mid-day to better gauge retail investor’s current market sentiment.  Tomorrow’s highlight will likely be JOLTS data to better understand the current dynamic around job creation reaching peak participation levels. Wednesday will feature a Producer Price Index result which will look to revert positive again after slipping to zero growth in the month of August. The Consumer Price Index will attempt to reach a high of 0.3% on Thursday, not seen since February. The week will be rounded out with Retail Sales coming on Friday which will be trying to realize a 6th straight monthly increase as the overall sector continues to transition. 

 

Major Earnings for the Upcoming Week:

 

Monday:

A.M–  HOV

P.M.–  N/A

 

Tuesday:

A.M.– FRAN

P.M.– N/A

 

Wednesday:

A.M. – N/A

P.M. –N/A

 

Thursday:

A.M. –KR

P.M. –N/A

 

Friday:

A.M.–  PLAY

P.M. –N/A

 

Economic Releases (9/10– 9/14):

 

Monday:

10:30 am CT – 6 Mo. Bill Auction

10:30 am CT – FOMC Member Bostic speaks

11:30 am CT – TD Ameritrade IMX                                                                                                                             

2:00 pm CT  – Consumer Credit                   

                                                                                                                                                                

Tuesday:

5:00 am CT – NFIB Small Business Optimism Index

7:30 am CT – Redbook

7:30 am CT – Jolts

9:00 am CT – Wholesale Trade

 

Wednesday:

6:00 am CT – MBA Mortgage Applications

7:30 am CT – PPI

9:00 am CT – Atlanta Fed. Business Inflation Expectations

9:30 am CT – Oil Inventories

12:00 pm CT – 10 Year Bond Auction

1:00 pm CT – Beige Book

 

Thursday:

7:30 am CT – Consumer Price Index

7:30 am CT – Weekly Jobless Claims

9:00 am CT – FOMC Member Quarles speaks

9:30 am CT – Natural Gas Inventories

12:00 pm CT – FOMC Member Bostic speaks

12:00 pm CT – 30 Year Bond Auction

3:30 pm CT – Fed Balance Sheet/ Money Supply

 

Friday:

7:30 am CT – Retail Sales

7:30 am CT – Import/Export Prices

8:15 am CT – Capacity Utilization Rate/ Industrial Production  

9:00 am CT – Business Inventories

9:00 am CT – Consumer Sentiment

12:00 pm CT – Baker-Hughes Rig Count

 

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

                                                   

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