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US Futures are Higher Ahead of the Fed Decision Due out at 2PM

US Futures are higher ahead of the Fed decision due out at 2pm.  Markets have already priced in a 25bps rise in the federal funds rate, however, attention will be payed to the dot plot for a potential change in the expectation of future rates.  In political news, democratic Senate candidate Doug Jones beat republican candidate Roy Moore in the Alabama special election.  The surprising victory will narrow the GOP Senate majority to 51-49 next year.  In economic news, November inflation data was reported inline with expectations as CPI rose 0.4% m/m and 2.2% y/y.  European shares are mixed with retail stocks outperforming.  Asian shares closed mostly higher with strength in energy as technology shares lagged.

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18 Hits

US Futures are Slightly Higher as the Fed Begins a 2-Day Policy Meeting

US Futures are slightly higher as the Fed begins a 2-day policy meeting.  At the conclusion of the 2-day meeting, the Fed will announce any monetary policy changes at 2pm on Wednesday.  In economic data, the Bureau of Labor Statistics said that producer prices rose more than expected in November, rising by 0.4% m/m and 3.1% y/y.  PPI ex-food and energy was also slightly higher than expectations at 0.3% m/m.  European shares are higher as inflation rises.  Headline inflation rose to 3.1% y/y in the UK ahead of the BOE and ECB monetary policy meetings on Thursday.  Asian shares closed mostly lower, however, energy shares traded higher as Brent crude prices rose to the highest level since 2015.

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41 Hits

US Futures Have Pared Gains After Report of an Explosion in NYC

US futures have pared gains after report of an explosion in NYC.  A device explosion near a Times Square subway station left the purported suspect injured with no other reported injuries.  This week will be a big week for monetary policy with several central banks expected to make announcements.  On Wednesday, the Federal Reserve is expected to raise the federal funds rate for the third time this year by 25 basis points to a range of 1.25 to 1.5%.  Thursday will see key monetary policy updates from the European Central Bank, the Bank of England and the Swiss National Bank.  In economic data, October’s JOLTS report will be released at 10am.  The market is expecting job openings to increase to 6.1M openings in October.  Much anticipated Bitcoin futures began trading on Sunday on the CBOE, already triggering 2 trading halts due to 20+% surge in the first 24 hours of trading.  European shares are mixed with banks and materials stock leading to the upside.  Asian shares closed higher with casino stocks and banks leading the way higher.

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30 Hits

The US Added 228,000 jobs last month compared to estimates of 200,000

US futures are higher this morning on the back of a better than expected government jobs report.  According to the Bureau of Labor, the US added 228,000 jobs last month compared to estimates of 200,000 with the unemployment rate holding steady at 4.1%.  On the political front, Congress was able to pass a short term funding bill last night to avoid a government shutdown.  Markets in Asia closed higher led by the Nikkei on the back of a weaker yen and better than expected trade data out of China.  European markets are trading higher led by the banks after regulators agreed on a deal which is part of the Basel III capital levels.  Markets in Europe are also getting a boost from Brexit talks after a few key issues were agreed upon.  Later today, we will get data for consumer sentiment and wholesale trade.  

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39 Hits

US Futures are Mixed After Early Morning Gains Fade

US futures are mixed after early morning gains fade.  In a deviation from recent days, the DJIA and S&P500 are lower, while the Nasdaq is higher.  Weekly jobless claims fell by 2k to 236k, lower than expected, for the week ending 12/2.  European shares are mostly lower as basic materials lag.  Asian shares closed mixed as the Japanese Nikkei bounced back from yesterday’s rout.

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30 Hits

US Futures are Lower as Global Stocks Decline

US futures are lower as global stocks decline.  In the US, ADP reported private payrolls in November rose by 190K, slightly above estimates.  Third quarter non-farm productivity rose slightly less than expected to 3% q/q, while unit labor costs declined by 0.2%.  The decline in unit labor costs was a surprise as the market was expecting a rise of 0.3% for the quarter.  European shares are lower, led by auto, bank and technology shares.  Asian shares closed lower with Japan’s NIKKEI falling nearly 2%.

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38 Hits

US Futures are Higher After Yesterday's Mixed Session

US futures are higher after yesterday’s mixed session.  Yesterday, the US Supreme Court ruled that Trump’s travel ban from 6 mostly-Muslim countries can take effect immediately.  In economic data, the October trade deficit increased more than expected to $48.7B.  At 10:00am, the Institute for Supply Management will report their November non-manufacturing index update.  European shares are mixed as Brexit discussions stall due to Northern Ireland’s Democratic Unionist Party rejecting a special status for Northern Ireland upon the UK split.  Asian shares closed mostly lower as technology stocks lagged.

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41 Hits

US Futures are Sharply Higher This Morning After the Senate Passed Their Version of the Tax Bill Early Saturday Morning

US futures are sharply higher this morning after the Senate passed their version of the tax bill early Saturday morning.  The vote came out 51-49 in favor of the tax bill which will now need to be a joint bill between the Senate and the House.  The progress in the tax reform has helped reverse the losses Friday which came after news that  Michael Flynn, a member of Trump’s election team, pleaded guilty to lying to federal investigators.  Markets in Europe are trading higher on the back of the Senate’s tax bill vote while Asian markets closed mostly lower.  

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51 Hits

US Futures are Mixed as Senate Republicans Delayed a Vote on the Tax Bill

US futures are mixed as Senate Republicans delayed a vote on the tax bill.  Concerns about the fiscal “trigger” caused lawmakers to make changes to the bill and required more time to complete, forcing a delay in the vote.  In Bitcoin news, the CFTC has approved futures trading on Bitcoin and will begin trading on GLOBEX on December 18th of this year and later be available by the CBOE.  While Bitcoin is trading higher on this news, speculation of increased regulation is expected due to broader acceptance by the mainstream investment community.  On the economic front, November PMI, ISM and October construction spending are due out later this morning.  European shares are mostly lower as technology shares lag.  Asian shares closed mixed with the Japanese NIKKEI leading to the upside.

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41 Hits

US Futures are Higher as Technology Shares Rebound

US futures are higher as technology shares rebound.  In economic data, weekly jobless claims fell by 2k to 238K last week.  Personal income and spending rose in October by 0.4% and 0.3%, respectively.  At 9:45am, the Institute for Supply Management will update business conditions in the Chicago area with the release of November’s Chicago PMI.  European shares are higher with telecom stocks leading the way.  Asian shares closed mostly lower as technology shares followed the lead of US stocks.  China shares were also lower despite a better than expected manufacturing PMI report.

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44 Hits

US Futures are Mixed Ahead of Fed Speakers

US futures are mixed ahead of Fed speakers.  NY Fed President William Dudley is speaking this morning at Rutgers University, while Fed Chair Janet Yellen will be speaking on the economy at 10am in Washington.  A second look at Q3 GDP was in line with forecast at 3.3% annually.  At 10:30am the EIA will release the latest weekly oil inventories which could move oil prices.  European shares are mostly higher, with most sectors in the green.  Asian shares closed mixed with technology shares rebounding.

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51 Hits

US Futures are Higher Ahead of September Home Price Data and a Read on November Consumer Confidence

US futures are higher ahead of September home price data and a read on November consumer confidence.  The October Trade deficit increased to $68.3 B, above estimates of a deficit of $64.8 B.  The September Case-Shiller home price index rose in line with forecasts at 6.2% yoy.  At 10:00am the market will get a reading on November consumer confidence, with estimates at 124.5.  European shares are higher after the results of the BOE’s bank stress tests showed that no banks are in need of raising capital.  Asian shares closed mixed with weakness in exporting companies.

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56 Hits

US Futures are Flat After a Slight Advance in Friday's Abbreviated Session

US futures are flat after a slight advance in Friday’s abbreviated session.  US markets closed slightly higher on Friday, on low volume trading.  At 10am, October new home sales will be released with expectations for a decline from September’s surge.  European shares have turned negative with technology shares leading to the downside.  The euro climbed to a 2-month high as business confidence in Germany strengthened.  Asian shares closed mostly lower as technology shares lagged.

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50 Hits

US Futures are Slightly Higher as Jobless Claims Remain Low

US futures are slightly higher as jobless claims remain low.  The Labor Department reported that initial jobless claims for the week ending Nov. 18th were 239K, in line with forecasts.  The preliminary October durable goods order fell by 1.2%, below expectations, however, ex-transportation rose 0.4%.  European shares are mostly higher as UK budget talks are in the spotlight as Brexit talks continue.  Asian shares closed higher as China’s Hang Seng closed above 30,000, making a multi-year high.

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60 Hits

US Futures are Higher as Global Stocks Rally

US futures are higher as global stocks rally.  US futures have been gaining traction throughout the morning.  Fed Chair Janet Yellen confirmed that she will resign from the board of governors in February when Jerome Powell becomes the new Fed Chair.  With Yellen leaving, four of the seven seats will need to be filled, giving President Trump a strong influence on re-shaping the central bank.  At 10am the market will get information on existing home sales for October, with expectations for another month of growth.  European shares are higher despite political uncertainty in Germany.  Weeks of talks to form a new government have stalled, leading to discussions of possibly holding new elections.  Asian shares closed higher.  China’s Tencent Holdings overtook Facebook as the world’s fifth largest company by market cap after a strong November move higher.

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65 Hits

US Futures Have Turned Positive to Kick-Off a Holiday Shortened Trading Week

US futures have turned positive to kick-off a holiday shortened trading week.  For the second week in a row, the Dow and S&P recorder a small weekly loss.  Treasury yields are slightly higher, while gold and crude oil are lower.  European shares are being led higher by auto and health care stocks, while materials stocks lagged.  Asian shares closed mixed as China advanced and Japan’s NIKKEI pulled back from recent all-time highs.

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74 Hits

US Futures are Flat After October Housing Data

US futures are flat after October housing data.  October housing starts rose 13.7% last month to an annualized rate of 1.29M, while building permits were up 5.9% to an annualized rate of 1.3M.  European shares were mixed after ECG President Mario Draghi said that they can remain patient when normalizing policy because inflation remains subdued.  Asian shares closed mixed with strength in Tesla suppliers in Taiwan after Tesla introduced their new electric Semi tractor trailer and surprise electric roadster.

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65 Hits

US Futures Rise as the House of Representatives Moves Closer to a Tax Reform Bill Vote

US futures rise as the House of Representatives moves closer to a tax reform bill vote.  The House is expected to vote on a tax bill this week and the GOP remains optimistic that the bill can pass.  Weekly jobless claims rose to 249K, but continuing claims fell to 1.86M.  Import prices rose 0.2% m/m and 2.5% y/y in October.  The Philadelphia Fed Business outlook Survey came in lower than expected at 22.7 for November.  At 9:15am, the market will get a read on October industrial production and at 10am, housing market index.  The 2yr Treasury rose to 1.7%, the highest level in nearly 10 years, as the yield curve continues to flatten.  European shares are higher as materials stocks rebound.  Asian shares were led higher as Japan bounced back with a 1.5% gain in the Nikkei 225.

 

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82 Hits

US Futures are Lower as Investors Weigh the Senate Version of the Tax Bill

US futures are lower as investors weigh the Senate version of the tax bill.  Investors seemed cautious as details of the Senate’s tax plan were revealed over concerns that the bill may not have enough support.  In economic data, October consumer prices rose by 0.1% and 2.0% yoy, both in line with estimates.  October retail sales rose 0.2%, above expectations of 0.1%.  The NY Fed Empire Manufacturing Survey was weaker than expected in November at 19.4.  European shares are lower, led by energy and materials stocks.  Asian shares closed lower, led by energy shares.  Japanese Q3 GDP came in better than expected, growing at a 1.4% annual rate.

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82 Hits

US Futures are Lower as Producer Prices Rise

US futures are lower as producer prices rise.  The Labor Department reported that producer prices rose 0.4% in October and 2.8% yoy, while core PPI was up 0.2% in October and 2.3% yoy.  The latest inflation data confirms a steady rise in wholesale prices.  The NFIB reported that small business confidence rose to 103.8 in October from 103 in September.  European shares are mostly lower despite stronger than expected GDP numbers out of Germany.  German Q3 GDP rose 0.8% from 0.6% in Q2.  Asian shares closed mostly lower on weaken than expected data out of China.  Chinese industrial production, fixed asset investment and retail sales were all weaker than forecast.

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74 Hits

Reporting Highlights Summary

Reporting period highlights summary thus far:

·        Economic growth across the globe has been solid, and there is a high correlation between GDP growth and corporate revenue growth.  While U.S.-oriented companies are meeting expectations, companies with international exposure are beating expectations.

·        The positive earnings surprise overall stands at roughly 6%, and 70% of companies are beating estimates.  The average over the past few years is 68% of companies beating by 4.7% on average.

·        Expectations are for revenues, earnings, and EPS growth of 5.5%, 7.9%, and 9.1%, respectively. EPS is on pace for 9.7%, assuming the current beat rate for the remainder of the season.  This is down from the 2Q final growth rate of 12%.

·        Companies beating on both the top- and bottom-lines have outperformed by 0.9%, while those missing on both have lagged by -2.0%.  This compares to +2% and -3% historically.  There have been several stocks down double-digit on disappointing earnings.

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94 Hits

US Futures are Lower After the Market Records its First Weekly Loss in 2 Months

US futures are lower after the market records its first weekly loss in 2 months.  Volatility picked up slightly last week and the S&P recorded a small weekly loss.  Earnings season is slowing down with 91% of the S&P 500 having already reported for Q3 2017.  European shares are lower as financial stocks lag.  Asian stocks closed mixed, with Japanese stocks lagging after a record run.

 

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84 Hits

Provisions of New Senate Tax Plan Released Last Night

The Senate formally announced its version of a tax reform bill last night.  While there are a number of variances in the Senate bill relative to the recently-announced House version, the most notable differences are: 

(1) the Senate’s delaying of the corporate tax rate reduction until 2019 (which rattled investors yesterday),

(2) the total exclusion of the state and local tax deduction (vs. $10K cap in House bill); and

(3) doubling the estate tax threshold to $11MM (House bill phases out estate tax entirely over time).

Click here for the key provisions of the 253-page Senate bill titled “Tax Cuts and Jobs Act.”

Now that we have the President’s framework, the House bill and the Senate bill, the reconciliation process will begin in earnest.  It is expected to be a challenging process, and we will be watching the developments closely to determine what we believe the ultimate bill will look like and what the implications are for markets and our clients.  For any questions, call United Asset Strategies at (516) 222-0021 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

 

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82 Hits

US Stock and Bond Futures are Lower for the Second Day

US stock and bond futures are lower for the second day.  Both stocks and bonds fell yesterday and are sliding today as investors digest earnings, taxes and inflation.  At 10am we will get a preliminary read on November consumer sentiment with estimates at 100.00.  European shares are mostly lower with most sectors lower as investors take profits.  Asian shares closed mostly lower with the Nikkei 225 falling for a second day after a record run.  China announced plans to ease restrictions on foreign ownership of Chinese financial companies.  The new rules would allow foreign ownership up to 51%.

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82 Hits

Provisions of New House Tax Plan Released

In an effort to keep you up to date on the new House tax plan released by Republicans, we’ve outlined some key provisions here.

There are still MANY details to be worked out, the process is going to be painful and key points will likely change over time.

United Asset Strategies is here to help steer you through the confusion.  Call (516)222-0021 or email at This email address is being protected from spambots. You need JavaScript enabled to view it.

for answers to your questions how the new tax plan will affect you and your business. 

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106 Hits

US Futures are Lower After Setting Fresh Record Highs on Wednesday

US Futures are lower after setting fresh record highs on Wednesday.  Consumer discretionary shares are lower on weaker earnings from retailers.  Jobless claims for last week were slightly higher than expected at 239k, with continuing claims also higher than forecast.  European shares are being led lower by material stocks on earnings news.  Also in Europe, Brexit talks have resumed with hopes of progress by year-end.  Asian shares closed mixed as China inflation data was slightly higher than expected.

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83 Hits

66 Million Americans Will See an Increase in Their Monthly Social Security and Supplemental Security Income Next Year

The Social Security Administration just announced its annual Cost-of-Living Adjustment (COLA) for 2018.

United Asset Strategies believe this is important to share since 66 million Americans will see an increase in their monthly Social Security and Supplemental Security Income next year.  

The purpose of the COLA is to ensure that the purchasing power of Social Security will not be eroded by inflation.

This is very welcome news since Social Security did not have an increase in 2016 and only a 0.3% increase in 2017.

Key provisions are listed below:

  • Social Security Cost-of-Living Adjustment (COLA) will increase to 2%.
  • Maximum amount of earnings subject to Social Security payroll tax will increase to $128,700. 
  • Earnings limit for workers younger than “full” retirement age will increase to $17,040. Social Security Administration deducts $1 from benefits for each $2 earned over $17,040. 
  • Earnings limit for workers turning “full” retirement age in 2018 will increase to $45,360.  Social Security Administration deducts $1 from benefits for each $3 earned over $45,360.

 For answers to your Social Security questions and to learn more about the Social Security Planning United Asset Strategies offers,

please call (516)222-0021 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

 

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88 Hits

US Futures are Flat on the Anniversary of President Trump's Election

US Futures are flat on the anniversary of President Trump’s election.  One year ago today we learned that Trump was to be the next President of the United States and measures of market volatility soared.  Here we stand one year later and US markets are significantly higher and volatility is near record lows.  MBA mortgage applications were flat week-over-week, with 1% rise in purchases being offset by the 1% fall in refinances.  European shares are mixed, with banking stocks underperforming over concerns for delays in US tax reform.  Asian shares closed mixed as China’s October trade data showed weaker than expected exports.

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91 Hits

US Futures are Little Changed After Fresh, Record Highs on Monday

US Futures are little changed after fresh, record highs on Monday.  At 10am, the market will get a look at job openings from September when the latest JOLTS report is released.  Fed Chair Janet Yellen is expected to speak at the Paul H. Douglas Award for ethics in government this afternoon in Washington.  European shares are mostly lower with Technology shares underperforming and Energy shares outperforming.  Asian shares closed mostly higher led by the Nikkei 225 reaching a 26-year high.

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94 Hits

US Futures are Flat as President Visits Asia

US Futures are flat as President visits Asia.  President Trump has been making headlines on his Asia trip, commenting that the US and Japan need to work together to fix trade imbalances.  Brent crude oil futures have been rising as news of a corruption crackdown in Saudi Arabia led to fears of destabilization in the region.  In deal news, Broadcom announced an unsolicited bid to buy Qualcomm, which would be the largest technology deal in history.  European shares are mixed with basic materials outperforming and telecom stocks lagging.  Asian shares closed mixed while President Trump visited the region.  Energy stocks were higher on strength in oil prices.

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90 Hits

US Futures are Higher Despite Weaker Job Growth in October

US Futures are higher despite weaker job growth in October.  The Bureau of Labor Statistics reported that October non-farm payrolls grew by 261K, well  below expectations for a growth of 325k.  While October’s job growth disappointed, August and September’s were revised higher by 39k and 51k, respectively.  The September trade deficit was roughly in line with estimates at -$43.5B.  At 10am, September factory orders and the October ISM Non-Manufacturing index will be released.  European shares are mixed on earnings, with automakers leading to the upside.  Asian shares closed mostly higher on strength in technology stocks as Apple suppliers rallied on earnings.

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86 Hits

US Futures are Trading Unchanged as the Market Awaits a Fed Chair Decision and Details on Tax Plan

US Futures are trading unchanged as the market awaits a Fed chair decision and details on tax plan.  At 3pm, President Trump is expected to announce that Jerome Powell will be the next chairman of the Fed.  The GOP is expected to release details of the proposed tax bill during today’s market session.  In economic data, unemployment claims fell to 229K for the week of 10/28, lower than estimates of 235K.  The preliminary read of Q3 productivity was better than expected at 3.0%, while unit labor costs were slightly lower than expected at 0.5%.  European shares have pared gains, some turning negative, after the BOE raised the Bank Rate for the first time in over 10 years.  The BOE raised the Bank Rate to 0.5% from 0.25% and said more hikes are expected to keep inflation under control as the pound has weakened significantly over the past year.  Asian shares closed mostly lower; however, the NIKKEI 225 bucked the trend on strength in automakers and energy stocks.

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88 Hits

US Futures are Higher as Global Markets Rally

US Futures are higher as global markets rally.  Stock markets around the world are higher led by energy and materials as commodities rally.  In the US, the Mortgage Bankers Association reported that mortgage applications fell 2.6% last week with weakness in refinancing.  ADP reported that October payrolls grew by 235K; however, September was revised lower by 25K.  At 9:45 am, we will get a final read on October PMI manufacturing index.  At 10 am, data on ISM manufacturing and construction spending will be released.  Lastly, at 2 pm the FOMC will announce the results from their 2-day meeting.  The market is not expecting any changes to policy in this meeting but will be looking for cues for upcoming adjustments.  European shares are higher on the back of energy and materials while retail stocks lagged.  Asian shares closed higher, with increased oil prices driving energy stocks higher.

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99 Hits

US Futures are Trading Higher as the FOMC Begins Their 2-Day Meeting

US Futures are trading higher as the FOMC begins their 2-day meeting.  The FOMC begins a 2-day meeting that will end with a policy announcement at 2pm on Wednesday.  A read on Q3 employment costs for wages, salaries and benefits showed a 0.7% increase, in line with expectations.  The Case-Shiller index showed that house prices rose by an annualized rate of 5.92% in August, roughly in line with expectations.  Other data set for release today include the Chicago PMI and consumer confidence for October.  European shares are being led higher by energy stocks on better than expected earnings  from BP.  Euro area inflation was reported softer than expected.  Asian shares closed mixed after weaker than expected manufacturing PMI in China and the BOJ announced no changes to the current monetary policy.

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106 Hits

US Futures are Lower After a Strong, Technology-Led Rally on Friday

US Futures are lower after a strong, technology-led rally on Friday.  US stocks look to take a breather after setting new, all-time highs on Friday.  In economic data, the Commerce Department reported that personal income rose 0.4% and spending rose 1.0% in September.  Personal income was in line with forecasts, while spending was slightly stronger than anticipated.  Former Trump campaign manager, Paul Manafort, is reported to have surrendered to authorities after being indicted over the weekend in relation to the Russia election probe.  European shares are being led lower by Consumer Staples stocks.  Asian shares closed mixed, with China underperforming amid concerns over liquidity in the Chinese bond market.

 

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99 Hits

US Futures are Being Led Higher After Earnings by the Tech-Heavy NASDAQ

US Futures are being led higher after earnings by the tech-heavy NASDAQ.  Strong earnings from Alphabet, Microsoft, Amazon, Intel and others have boosted the equity markets.  In economic news, the Commerce Department reported that Q3 GDP came in stronger than expected at 3.0%.  Estimates for Q3 GDP were in the range of 2.5 to 2.7%.  At 10 am the market will get a read on October consumer sentiment which is expected to be unchanged at 101.  European shares  are higher as remarks from Draghi were viewed as dovish and earnings reports continue to please.  Asian shares closed mostly higher on strong earnings in China.

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105 Hits

US Futures are Flat After Jobless Data and the ECB Decision

US Futures are flat after jobless data and the ECB decision.  Jobless claims for the week of 10/21 rose to 233K from 223K (a 44 year low) last week.  September trade data came in roughly in-line with estimates, showing a deficit of $64B.  European shares are higher on earnings and the ECB announcement.  Mario Draghi announced, as expected, that the ECB will leave rates unchanged and reduce asset purchases from 60B Euro to 30B Euro from January 2018 through September j2018.  Asian shares closed mixed on earnings news and in anticipation of the ECB announcement and its effect on global liquidity.

 

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106 Hits

US Futures are Slightly Lower as the Market Digests Earnings and Higher Yields

US Futures are slightly lower as the market digests earnings and higher yields.  The 10 yr Treasury rose above a key level of 2.40% yesterday and is seeing follow-through today to 2.47%.  September durable goods orders rose 2.2%and 0.7% ex-transportation, both higher than anticipated.  At 10am the market will get information on new home sales for September.  European stocks are mixed on earnings news, with Materials stocks leading to the downside.  Asian shares closed mostly higher, however, the Nikkei 225 bucked the trend with its first down day in 17 sessions.

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104 Hits

US Futures are Higher as Earnings Boost the Averages

US Futures are higher as earnings boost the averages.  Better than expected earnings and revenue from 3M and Caterpillar boosted the Dow.  European shares are mixed as investors weigh the uncertainty in Spain with corporate earnings.  Asian shares closed mixed as China’s 19th Party Congress came to an end.  Japanese stocks continue to be the bright spot in Asia, closing higher for the 16th consecutive day.

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110 Hits

US Markets Look to Open Slightly Higher as Earning's Season Kicks Into High Gear

US markets look to open slightly higher as earning’s season kicks into high gear.  Investors will get a good look at Q3 earnings this week as approximately 35% of S&P 500 companies will report earnings this week.  In Europe, shares are being led higher by health care stocks as their earnings help boost the sector.  The unrest continues in the Catalonian region of Spain as Catalonia attempts to defy the Spanish government and move forward with a declaration of independence.  Asian shares closed mixed although Japanese stocks were strong.  The Nikkei closed higher for the 15th consecutive trading day after Japanese Prime Minister Shinzo Abe secured enough votes for re-election.

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116 Hits

US Futures are Higher on News That the Senate Passed a 2018 Budget Resolution

US Futures are higher on news that the Senate passed a 2018 budget resolution. With a 51-49 vote, the Senate approved a budget that will now have to be reconciled with the House’s version.  The passage of the budget is viewed as a key step toward tax reform.  Treasury yields are higher on the news as the FOMC has not accounted for tax reform in their current projections.  At 10am, the market will get a reading on September home sales, which are expected to fall slightly to 5.3M units.  European shares are higher, led by banks and materials stocks, on positive earnings results.  Asian shares closed higher despite warnings on Thursday from a Chinese Central Governor’s warning of too much optimism leading to sharp declines in asset prices.

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124 Hits

US Futures are Lower After Another Record-Setting Day

US Futures are lower after another record-setting day.  The Dow closed above 23,000 yesterday for the first time led by strong results from IBM.  Futures today are pointing to a lower opening on the 30th anniversary of “Black Monday.”  In economic data, weekly jobless claims fell by 22K to 222K, marking the lowest jobless claims data since 1973, according to Bloomberg.  The Philadelphia Fed reported that their manufacturing index rose to 27.9 in October, well above the estimate of 22.  Prices paid also rose more than expected to 38.1 from 34.4.  European shares are lower on mixed earnings result.  Asian shares closed mixed as China’s 3Q GDP growth of 6.8% YOY failed to excite investors.

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118 Hits

US Futures are Trading Higher Despite Weaker Housing Starts

US Futures are trading higher despite weaker housing starts.  September housing starts declined for the 3rd month in a row to a 1.127M annualized pace, lower than the estimates of 1.17M.  Housing permits also disappointed at 1.215M against estimates of 1.238M.  Later today the market will get clarity around the data that the Fed considered in their September meeting when the Fed’s Beige book is released at 2pm.  European shares are trading higher on better earnings.  Asian shares closed mostly higher on the commencement of the 19th National  Congress of the Communist Party of China.  President Xi Jinping highlighted China’s past achievements and the challenges of the future.

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118 Hits

US Futures are Flat as Investors Digest Earnings and Economic Data

US Futures are flat as investors digest earnings and economic data.  The Labor Department reported that September import and export prices came in higher than expected, rising 0.5% m/m and 0.8% m/m, respectively.  The higher import prices are likely due to higher oil and food costs.  The Federal Reserve’s report on Industrial Production showed an increase of 0.3% m/m in September.  European shares are slightly higher.  Two ECB members will speak later today in Europe.  Asian shares closed higher for the 11th day in a row led by Japanese shares.

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135 Hits

US Futures are Slightly Higher as Earnings Season Kicks Off

US Futures are slightly higher as earnings season kicks off.  S&P 500 earnings are expected to grow 4.8% year-over-year in Q3.  The October Empire Manufacturing Survey came at 30.2, higher than the average estimate of 20.0.  European shares are being led higher by material stocks after China trade data.  Asian shares closed mostly higher as investors digested higher inflation data in China.

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125 Hits

US Futures Rose and Yields Fell as Economic Data was less than Anticipated

US futures rose and yields fell as economic data was less than anticipated.  September month over month CPI rose 0.5%, slightly below expectations of an increase of 0.6%.  Retail sales for September rose 1.6%, below the 1.7% expectation.  Lower inflation and retail sales gave the market hope for a slower Fed normalization.  The market will get readings on business inventories and consumer sentiment at 10 am.  European shares are mixed as speculation that the ECB will reduce monthly bond purchases from 60B to 30B euros in January.  Asian shares closed mostly higher after strong earnings from Samsung and China trade data was released.

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120 Hits

US Futures are Lower After Muted Response to Data

US Futures are lower after muted response to data.  First time claims for unemployment insurance came in at 243K, below the consensus estimate of 252K, as the market rebounded from the hurricane related data points.  The Bureau of Labor Statistics reported that producer prices rose 0.4% in September above the expectations for a 0.2% rise.  Producer prices, ex- food and energy, also came in higher than expected at 0.4% vs. expectations of 0.2%.  The big banks have begun reporting earnings with earnings and revenue beating expectations for both JPM and C.  European shares are mixed as Brexit discussions have come to a halt.  Asian shares closed mostly higher led by the Nikkei 225 touching a 21-year high.

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123 Hits

US Futures are Slightly Lower as Weekly Mortgage Applications Fall on Higher Rates

US Futures are slightly lower as weekly mortgage applications fall on higher rates.  The Mortgage Bankers Association announced that mortgage applications for the week of 10/6 saw applications fall by 2.1% on weakness in refinance activity as rates creep higher.  At 10 am, the market will get data on August job openings when the latest JOLTS report is released.  Expectations are for job openings to fall slightly to 6.16M in August.  At 2 pm, the FOMC will release the minutes from their September 20th meeting and new insights are not expected from the release.  Markets are currently pricing in a 92% chance of a rate hike in December.  European shares are mostly lower as political uncertainty continues.  Asian shares closed mostly higher.

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US Futures are Higher as the Market Awaits Comments From Two Fed Presidents

US Futures are higher as the market awaits comments from two Fed Presidents.   Minneapolis Fed President Neel Kashkari and Dallas Fed President Robert Kaplan will both speak later today.  The market continues to look for clues on the probability of future rate hikes.  The NFIB released the September Small Business Optimism report this morning that came in below estimates at 103.  Weakness was broad in sales expectations and not limited to hurricane ravaged states.  European shares are flat.  Spain’s IBEX slumped by about 1%.  The Catalan parliament is meeting today to consider a declaration of independence.  Asian shares closed mostly higher.

 

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US Futures are Higher as Volatility Remains Low

US Futures are higher as volatility remains low.  Equity markets are open today but bond markets are closed in observation of Columbus Day.  This week will kick off earnings season with some of the largest banks set to report earnings on Thursday and Friday.  European shares are mixed after the ECB stress test results showed European banks are managing interest rate risk well.  Asian shares closed mostly higher despite a lower than expected Caixin services PMI in China.

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