Stock Indexes Higher For Fourth Day
STOCK INDEX FUTURES
U.S. stock index futures are on track for a fourth day of gains, as hopes for global stimulus continue to drive gains.
Homebuyer mortgage demand increased to an 11-year high, as rates hit another record low. Mortgage applications to purchase a home increased 4% last week from the prior week and were 21% higher than a year ago, according to the Mortgage Bankers Association. This was the ninth consecutive week of gains.
May housing starts were 974,000 when 1,100,000 were expected and permits were 1,220,000, which compares to the anticipated 1,250,000.
Following his testimony before the Senate Banking Committee yesterday, Federal Reserve Chairman Jerome Powell will testify before the House Financial Services Committee today at 11:00 central time. Yesterday during his testimony Powell emphasized that the Federal Reserve is encouraged by the recent economic data, but the central bank remains cautious and believes the U.S. economy is still a long way from “normalcy.” He also reinforced his previous comments that the Federal Reserve is ready to do more if needed.
The technical picture remains positive for stock index futures.
The U.S. dollar appears to be bottoming and the euro currency appears to be topping.
The euro zone consumer price index for May was down 0.1% on the month, as estimated.
The Bank of England will hold its regularly scheduled policy meeting tomorrow.
The Bank of Canada governor said it could take a long time before the economy recovers.
INTEREST RATE MARKET FUTURES
The Treasury will auction 20-year bonds today.
Other Federal Reserve speakers today are Raphael Bostic at 11:00 and Loretta Mester at 3:00.
According to financial futures markets there is a 95.6% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
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