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Stock Index Futures Are Rebounding

STOCK INDEX FUTURES

Stock index futures are rebounding as dip buyers emerged to blunt a five-day selloff. The market movement came in tandem with easing Treasury yields.

Durable goods orders in August were down 0.2% when a decline of 0.4% was expected.

The 9:00 central time September consumer confidence report is anticipated to be 104.3.

The 9:00 August new home sales report is estimated to show 498,000 and the 9:00 September Richmond Federal Reserve manufacturing index is predicted to be -4.

CURRENCY FUTURES

After hitting new highs for the move yesterday, the U.S. dollar index is lower today.

Interest rate differential expectations remain bullish for the greenback long term.

The British pound recovered some ground after tumbling to as low as $1.0350 yesterday, which   was the weakest on record. Some analysts believe the pound could reach parity with the U.S. dollar or even fall below $1.00. Recent tax cuts announced by the U.K. government were not welcomed by investors as they are likely to make debt levels increase substantially.

INTEREST RATE MARKET FUTURES

Futures are higher even though Susan Collins, the new president of the Federal Reserve Bank of Boston, on Monday said she is committed to bringing inflation down to 2.0% even if it means slowing the economy.

Earlier today Fed Chair Jerome Powell spoke on digital finance.

Other Federal Reserve speakers today James Bullard at 8:55, Neel Kashkari at 12:00 and Mary Daly at 7:35 PM.

The Treasury will auction 5-year notes today.

According to financial futures markets, there is a 32.0% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 68.0% probability that the rate will increase by 75 basis points at the November 2 policy meeting.

The inverted Treasury yield curve continues to warn of economic risks ahead.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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