Daily Morning Report

Friday, July 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight, following the U.S. and European Union initial agreement to stop slapping trade tariffs on each other. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. U.S. stock index futures on Wednesday hit new contract or multi-month highs.

The big U.S. economic data point of the week is this morning’s first estimate of second-quarter gross domestic product (GDP). The number is expected to come in at up a strong 4.4%, with some analysts even calling for a number of 5.0% or just above. However, some weak economic data released Thursday has some analysts scaling back their GDP number for today. Look for more active trading in many markets in the aftermath of the GDP number, especially if it’s a miss from forecasts.

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Thursday, July 25–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to weaker overnight, as Asian bourses were mostly lower and European equities mostly higher. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. U.S. stock index futures on Wednesday hit new contract or multi-month highs.

The buzz in the marketplace this morning is the big downside hit to the Facebook stock price after that company posted a big miss in earnings Wednesday afternoon.

The key “outside markets” today find Nymex crude oil prices near steady and trading just above $69.00 a barrel. The U.S. dollar index is weaker early today.

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The U.S. dollar index is a basket of six major world currencies weighted against the greenback. See on the daily bar chart that the USDX hit a 12-month high last week. Price action has been choppy recently, but the USDX bulls still have the solid overall near-term technical advantage. The path of least resistance for the USDX remains sideways to higher, which also extrapolates into the Euro currency trading sideways to lower in the near term. Stay tuned!

Wednesday, July 24–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

U.S. President Trump is meeting with the European Union Commission leader Juncker today to try to de-escalate trade tensions between the U.S. and the EU. The U.S. has threatened EU automobiles with import tariffs.

In the currency markets, focus is on the Turkish lira, which has been under strong pressure. Also, the Chinese yuan has seen serious depreciation against the U.S. dollar in recent months.

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Tuesday, July 23–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.

In overnight news, the Euro zone Markit purchasing managers’ index composite (PMI) was reported at 54.3 in July from 54.9 in June. A number above 50.0 signals expansion in the sector.

Featured in the marketplace early this week is rising world government bond yields, on ideas the major central banks of the world will embark upon rolling back their heretofore easy monetary policies. Reports say the Bank of Japan is on the verge of scaling back its very accommodative policies.

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The corn and soybean futures markets last Friday posted technically bullish weekly high closes, following a good week of upside price action. These are chart clues those markets have finally put in market bottoms. However, the bulls still have some heavy lifting to do to suggest those markets can sustain a near-term price uptrend. It is my bias that corn and soybeans have bottomed out and that prices will trade at least sideways, if not sideways to higher, in the coming weeks. Stay tuned!