Index Futures Net Changes and Settlements:
Foreign Markets, Fair Value and Volume:
- In Asia 7 out of 11 markets closed higher: Shanghai Comp +0.56%, Hang Seng +0.55%, Nikkei -0.49%
- In Europe 11 out of 12 markets are trading lower: CAC -0.68%, DAX -0.94%, FTSE -0.19%
- Fair Value: S&P +0.26, NASDAQ +10.23, Dow -27.09
- Total Volume: 1.9mil ESM, and 731k SPM traded in the pit
Today’s Economic Calendar:
Today’s economic calendar includes the Bank Reserve Settlement, MBA Mortgage Applications 7:00 AM ET, Consumer Price Index 8:30 AM ET, Atlanta Fed Business Inflation Expectations 10:00 AM ET, EIA Petroleum Status Report 10:30 AM ET, FOMC Minutes 2:00 PM ET, and Treasury Budget 2:00 PM ET.
S&P 500 Futures: #ES Surges, Energy And Tech Lead The Way
Yesterday, Asian markets closed higher across the board. Hong Kong’s Hang Seng Index closed up +1.7% after comments by Chinese President Xi Jinping suggested a less-aggressive stance with respect to trade, and “significantly lower” tariffs on vehicle imports this year, as part of efforts to further open its giant economy to the world. The news helped push European stocks higher, with the STOXX 600 up +0.60%.
The S&P 500 futures had a wild ride Monday night on Globex. The overnight range was 2612.25 to 2658.00 before yesterday’s 8:30 CT futures open. The first print came in at 2645.00, and the initial move was a rally up to 2651.00, followed by a pullback to 2638.50, and then another rally all the way to 2663.00 at 10:44 CT.
After a drop below the vwap at 2647.25 the ES went on to make a lower high at 2658.75, and then quickly sold off down to 2635.00 at 11:27, when a barrage of headlines hit the tape…
(10:59:18 AM):Cohen is under federal investigation over possible bank fraud, wire fraud and campaign-finance violations, three people with knowledge of the case have told The Washington Post.
(11:28:14 PM):FBI agents who raided the office of President Trump’s lawyer sought records of payments to 2 women who claim they had affairs with Trump.
(11:32:22 PM): US President Trump, UK Prime Minister May will ‘not allow’ Syria chemical attacks to continue, White House says.
(11:33:04 PM):F.B.I. agents who raided the office of Trump’s personal lawyer were looking for records about payments to 2 women who claim they had affairs with Trump, and info related to the publisher of The National Enquirer’s role in silencing one of the women.
After the selloff, the S&P 500 futures traded back up to 2658.50 at 12:36, dipped down to 2646.25, shot up to 2662.25, had one last selloff under the vwap, making higher low at 2647.50, and then shot up to new highs 2665.00. When the MiM and started showing $296 million to sell, the ES sold off to 2655.75. On the 2:45 cash imbalance release, the ES traded 2659.25, as the final MiM came out sell $200 million. On the 3:00 cash close the ES traded 2655.00, and then went on to settle at 2655.00 on the 3:15 futures close, up +37.25 handles, or up +1.52% on the day.
In the end, I think you can thank President Xi of China on his conciliatory speech concerning tariffs, automobile barriers, intellectual property, and technology transfer for the big rally. Will the rally last? Probably not, there are just too many moving parts right now.
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