NewsWare‘s Trade Talk

NewsWare’s Trade Talk: Wednesday, June 8

S&P Futures are lower this morning as sentiment remains fragile. At issue is whether the economy can skirt a recession as it faces rising interest rates and inflation. A key inflationary report, the consumer-price index data is due Friday and is expected to show inflation in the U.S. held steady at 8.3% in May. Oil extended its gains in Europe ahead of data from the DOE that is expected to show another sharp drop in U.S. crude inventories. Treasury Secretary Janet Yellen warned yesterday that inflation in the U.S. would likely remain elevated for some time.

NewsWare’s Trade Talk: Tuesday, June 7

S&P Futures are lower this morning as inflation and interest rates remain key topics for the market this morning. Treasury Secretary Janet Yellen is to appear before the Senate Finance Committee today. In merger news, KSS is said to be in exclusive talks with Franchise Group for a deal at $60 a share. Elon Musk continues to display indications that he does not want to move forward with his takeover of TWTR. There is a Congressional hearing today at 10:00 am on Cybersecurity and Risk Management.

NewsWare’s Trade Talk: Monday, June 6

S&P Futures are moving higher this morning. The Biden administration appears likely to lift some tariffs on Chinese goods. According to news reports, Covid-19 cases in China are falling and business is returning back to normal. In the U.K. PM Johnston is facing a confidence vote today. Oil prices are ticking higher as demand remains strong.

NewsWare’s Trade Talk: Friday, June 3

S&P Futures are moving lower this morning. Key economic data report due out this morning is the Non-Farm Payrolls which is expected to show that U.S. employers likely added jobs at a healthy clip in May, though they estimate the pace of hiring slowed from the month prior as companies confronted a tight labor

market and rising economic uncertainty. TSLA announced that they will be cutting their workforce by 10%. The strong dollar is causing tech firms to review their earnings guidance.

NewsWare’s Trade Talk: Thursday, June 2

S&P Futures are displaying solid gains this morning ahead of a host of economic data, particularly for manufacturing activity and job openings. Yesterday Beige Book indicated that all twelve Federal Reserve Districts have reported continued economic growth since the prior release. Oil prices are moving lower ahead of a pending announcement from OPEC this morning.

NewsWare’s Trade Talk: Wednesday, June 1

S&P Futures are flat to higher this morning as the market prepares for the start of a new trading month. The Fed plans to start shrinking its balance sheet this month. An initial balance sheet run-off of $47.5 billion per month, and more Fed rate hikes ahead, make a compelling case for the dollar to strengthen. Later this morning, we have reports on Manufacturing and construction spending data.

NewsWare’s Trade Talk: Tuesday, May 31

S&P Futures are moving lower this morning as new inflation indicators have traders reviewing their positions. Oil futures are spiking this morning as the E.U. has agreed in principle to ban most Russian oil imports by the end of the year. Earlier this morning, Germany's inflation reading came in hotter than expected. Later today, President Biden is scheduled to meet with Fed Chairman Jerome Powell today. China is expected to announce additional stimulus measures tomorrow.

NewsWare’s Trade Talk: Friday, May 27

S&P Futures are trading modestly higher this morning, due to the recent positive earnings results from various retailers. This morning, the market is preparing for an update on the Federal Reserve's favorite inflation indicator. The core personal consumption expenditure index deflator is in the crosshairs this morning. A weaker number in today's announcement would give a further reason to expect that the Fed's next rate decision will be to pause, rather than increase. Markets are closed on Monday for the Memorial day holiday.

NewsWare’s Trade Talk: Thursday, May 26

S&P Futures are currently flat to higher. Catalysts today will be the economic data reports on jobless claims and an updated reading of first-quarter gross domestic product. Fed Vice Chair Lael Brainard will be speaking on digital currencies at noon et. There are a host of retailers releasing earing this morning (M, BURL, DLTR, BIDU, DG, BABA). This afternoon watch for earning reports from ADSK, ULTA, VMW, AEO, GPS & COST. Oil prices are pushing higher into the Memorial Day weekend. Shares of Twitter are 55 higher this morning as Musk commits to provide an additional $6.25B in equity financing for the deal.

NewsWare’s Trade Talk: Wednesday, May 25

S&P Futures are flat to lower this morning. The catalysts today are the release of the Fed's meeting minutes due out this afternoon. The minutes are expected to provide traders with additional clarity on the future path of interest rates. Oil is trading higher on tight supply. The yield on the benchmark 10-year Treasury note was down to 2.729% from 2.758% on Tuesday. The U.S. Treasury Department moved to cut off Russia's ability to make payments on its dollar-denominated sovereign debt, putting Russia on a path toward defaulting on its foreign debts this summer and deepening the country's economic isolation after its invasion of Ukraine. This afternoon we have earnings announcements due out from Nvidia, Snowflake, Splunk, Williams Sonoma, Box, and others.