A Mid-Month Look at the Markets

A Mid-Month Look at the Markets

This week the S&P 500 futures erased last week’s losses, now trading up to the index's highest levels since October 10th.

A Mid-Month Look at the Markets
A Mid-Month Look at the Markets RawPixel.com via StockSnap

On Wednesday, the U.S. stock markets continued to rise, maintaining a pattern of firm equity markets even while global uncertainty seems to abound.

Trade talks with China seem to take a pessimistic turn following President Trump’s comments yesterday, and then overnight, China’s economic data came in weak, continuing to indicate a slowing Chinese economy.

Elsewhere, in Great Britain, following failed attempts to get a Brexit plan passed, the British pound has been volatile this week. However, Goldman Sachs has issued a note giving a 60% chance of Prime Minister May’s delayed and revised Brexit plan passing.

In addition, Boeing (BA) stock, which had plunged earlier this week, seemed to gather some support yesterday, encountering resistance around the $360-$370 level as reflected on the chart below.

For today, in Asia, 7 out of 12 stock markets closed lower, including the Shanghai Index which was down 1.2%, and in Europe this morning, all 13 stock markets are currently trading modestly higher. In the U.S. this morning, equity index futures are trading slightly higher.

Out of the 131 earnings reports today, the most notable will be Dollar General, and tomorrow only 18 earnings reports are due. The economic calendar is busy, featuring the new home sales numbers out at 10:00 a.m. EST, but tomorrow’s economic calendar is lighter.

The month of March includes 21 open sessions for U.S. stocks. Tomorrow, March 15th, is the middle of the month and the 11th trading session. However, given last week’s decline, we believe the mid-month rebalancing leaned higher going into this week and that that move has already begun.

After this week, institutions and funds will begin to look toward the end of the month which also marks the end of the quarter. On the charts, it appears the U.S. equity markets are poised to run higher. However, traders must remain cautious and remain aware of relevant news developments, especially Chinese trade talks and the overall Chinese economic situation.

Today’s Economic Calendar:

  • 8:30    Continuing Jobless Claims
  • 8:30     Export Price Index (YoY)
  • 8:30     Export Price Index (MoM) (Feb)
  • 8:30     Import Price Index (MoM) (Feb)
  • 8:30     Import Price Index (YoY)
  • 8:30     Initial Jobless Claims
  • 8:30     Jobless Claims 4-Week Avg.
  • 10:00    NAHB Housing Market Index (Mar)
  • 10:00    New Home Sales (Jan)
  • 10:00    New Home Sales (MoM) (Jan)
  • 10:30    Natural Gas Storage
  • 11:30    4-Week Bill Auction
  • 11:30     8-Week Bill Auction

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