Daily Morning Report

Monday, July 30–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. It’s been quieter summertime trading in the Northern Hemisphere markets recently.

In focus this week will be central bank meetings of the U.S., Bank of Japan and Bank of England. Only the BOE is expected to make any policy move—raising its interest rates slightly. The FOMC meeting of the Federal Reserve begins Tuesday and ends Wednesday afternoon with a statement.

Continue Reading

The U.S. Treasury bond futures market prices on Friday hit a five-week low and are trending lower. The bond market bears have the near-term technical advantage to suggest more sideways-to-lower price action in the near term. Fundamentally, recent stronger U.S. economic data also argues for rising interest rates and rising inflation. Stay tuned!

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.

Continue Reading

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.

Continue Reading

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.

Continue Reading