NewsWare‘s Trade Talk

NewsWare’s Trade Talk: Wednesday, September 28

S&P Futures are slightly lower this morning, Futures were positive after the Bank of England made a statement indicating that it would buy government bonds with long maturities on whatever scale is necessary in an effort to restore order to the market for gilts.  Apple and AAPL suppliers are moving lower due to news reports indicating soft demand for the iPhone14 and will not ramp up production. Stocks are coming under increasing pressure from near-global tightening financial conditions, as central banks raise interest rates to fight inflation. More signs are pointing to growth decelerating, including the first monthly decline in house prices in years. Jerome Powell is scheduled to speak this morning and the markets will be paying close attention to tomorrow's GDP release.

NewsWare’s Trade Talk: Tuesday, September 27

S&P Futures are indicating a move higher by over 1% this morning. The major benchmark indices have declined for multiple consecutive sessions as traders continue to retreat amid higher interest rates and growing recession concerns.  Fed Chair is scheduled to speak this morning and will likely continue the narrative of whipping inflation at all costs.  There are a host of key economic reports due out this morning and President Biden is scheduled to speak today at 1:15.  Oil prices are trading higher as Hurricane Ian continues to grow.

NewsWare’s Trade Talk: Monday, September 26

S&P Futures are lower this morning on light volume as bond yields move higher. On tap today, we have multiple Fed members hitting the speaking circuit and their comments will be closely watched as Central banks around the world are raising their key interest rates in the most widespread tightening of monetary policy on record. Fears of a global session which is causing traders to decrease their exposure to risk assets in favor of yield. Oil prices remain in focus as oil prices are trading approximately 1% lower this morning.

NewsWare’s Trade Talk: Friday, September 23

S&P Futures have been moving lower all morning, and the U.S. dollar continues to wreck all its competitors, as the market continues to price in further Federal Reserve interest-rate tightening as it fights inflation. The move higher in the dollar is causing crude oil prices to fall.  This afternoon there is a Fed Listens event happening. Fed Chairman Jerome Powell is scheduled to give the opening remarks.

NewsWare’s Trade Talk: Thursday, September 22

S&P Futures are trading higher this morning in the aftermath of yesterday's FOMC announcement where the Fed increased rates by 75 basis points. Fed chair Jerome Powell's tone at yesterday's press conference was rather hawkish. His comments emphasize that interest rates will be higher and for a longer period of time while downplaying the recent positive economic news.  The Fed's median projections see another 125 basis points of increases to the year-end. They also see the fed funds rate rising above 4.5% next year. CEO's from the major banks will be appearing today in front of the Senate banking committee. The Bank of England is expected to raise its benchmark interest rate this morning as well.

 

NewsWare’s Trade Talk: Wednesday, September 21

S&P Futures are moving higher this morning as we get closer to this afternoon's FOMC announcement on monetary policy.  The Federal Reserve is expected to increase interest rates by 75 basis points to a target rate of 3.0% to 3.25% when it delivers it decision at 2 pm Eastern.  The U.S. dollar rose to 20-year highs this morning as Russian President Vladimir Putin called for a partial military mobilization of the country to prosecute his attack on Ukraine. The partial mobilization means that reservists will be drafted into military service.  The announcement, which included threats against the West, raised fears of a further escalation in the conflict. Oil futures are 2.5% higher this morning.

NewsWare’s Trade Talk: Tuesday, September 20

S&P Futures are moving lower this morning. The market's main focus is on tomorrow's FOMC decision, yet housing will be in focus as well. This is a big week for housing reports plus home builders LEN & KBH are scheduled to release earnings. Fed officials have made clear they are willing to accept a recession if it is the price of slowing the pace of inflation. Data last week showed inflation remained strong, cementing expectations the central bank will keep raising rates. A 75-basis point hike remains the most popular prediction.

NewsWare’s Trade Talk: Monday, September 19

S&P Futures are lower this morning and the sentiment remains bearish ahead of the FOMC announcement on Wednesday. Stocks in London are closed today due to the Queen's funeral. Oil is trading lower as growth fears and expected central bank tightening this week weighed on sentiment. This week we will have monetary decisions from Japan, Sweden, Switzerland, Norway, U.K., and the U.S. Earnings reports from Costco, Lennar, Darden, General Mills, and more are expected this week.

NewsWare’s Trade Talk: Friday, September 16

S&P Futures are lower and the sentiment remains bearish ahead of next week's FOMC meeting.  The Fed has indicated a 0.75% rate hike at the conclusion of the monetary policy meeting next week.  The FOMC is likely to continue to raise rates until the labor market starts to weaken. FedEx said Thursday that its quarterly revenue fell below its expectations and it was closing offices and parking aircraft to offset declining volumes of packages moving around the world. Oil is seeing a slight rebound this morning.

NewsWare’s Trade Talk: Thursday, September 15

S&P Futures ahave reversed course and are now trading lower.  There are a slew of economic reports due out before the market opens today. The street is not expecting any significant surprise from this mornings reports, but a surprise in Retail Sales or Industrial production could be a catalyst for today.  President Biden says that the railroad strike has been averted.  Oil is weakening ahead of next week FOMC announcement.