April 16, 2018
STOCK INDEX FUTURES
Stock index futures are higher, as they look past geopolitical risks. There are hopes that the weekend U.S. led missile attack on Syria would not escalate into a broader conflict.
In addition, there is support from expectations of strong corporate earnings.
Investors are expecting tax cuts to help U.S. corporations show their biggest quarterly earnings growth in seven years.
Some analysts are predicting quarterly earnings for S&P 500 companies will increase 17% to 18.6% from a year ago.
Retail sales rose .6% in March from the previous month, after three preceding months of declines. Economists expected a .3% increase.
The general business conditions index in the Empire State manufacturing survey fell to 15.8 in April from 22.5 in March, according to the New York Federal Reserve. Consensus expectations had been for a reading of 18.2.
The 9:00 central time April housing market index is expected to be 70 and the 9:00 February business inventories report is anticipated to be up .6%.
Longer term, traders will probably gradually shift their focus of attention more toward earnings and the still accommodative global interest rate environment.
CURRENCY FUTURES
The U.S. dollar is lower in spite of the recently increased probability that the Federal Open Market Committee will increase its fed funds rate in June.
The U.S. dollar is lower in spite of the bullish U.S. retail sales report, which should be viewed as a sign of weakness for the greenback.
The Canadian dollar and the Australian dollar are higher in spite of lower crude oil prices.
INTEREST RATE MARKET FUTURES
Futures are lower as flight to quality longs are liquidated as a result of reduced Mideast tensions.
Earlier today Minneapolis Federal Reserve President Neel Kashkari said recent steps by the federal government to spur economic growth have made him more confident the Federal Reserve will achieve its 2% inflation target soon, which would allow the central bank to push ahead with planned interest rate hikes.
Atlanta Federal Reserve Bank PresidentRaphael Bostic will speak at 12:15.
The probability of a fed funds rate hike from the Federal Open Market Committee at the June 13 meeting is 95%, which is unchanged from Friday.
SUPPORT AND RESISTANCE
June 18 S&P 500
Support 2657.00 Resistance 2685.00
June 18 U.S. Dollar Index
Support 89.020 Resistance 89.640
June 18 Euro Currency
Support 1.23730 Resistance 1.24660
June 18 Japanese Yen
Support .93210 Resistance .93770
June 18 Canadian Dollar
Support .79200 Resistance .79730
June 18 Australian Dollar
Support .7745 Resistance .7795
June 18 Thirty Year Treasury Bonds
Support 144^8 Resistance 145^16
June 18 Gold
Support 1339.0Resistance 1355.0
May 18 Copper
Support 3.0400 Resistance 3.1100
June 18 Crude Oil
Support 66.01 Resistance 67.88
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