Daily Morning Report

Wednesday, May 2–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The key U.S. markets event Wednesday will be the Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning ends Wednesday afternoon with a statement. No change in U.S. interest rates is expected at this meeting. Focus will be on inflation prospects and what the FOMC members have to say on that matter.

Another important U.S. data point today will be the release of the ADP national employment report for April, which is expected to show a rise of 190,000 jobs.

A U.S. high-level trade delegation travels to China Thursday to try to avert a trade war between the world’s two largest economies.

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Tuesday, May 1–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

Two important meetings have the attention of the world marketplace this week: The Federal Reserve’s Open Market Committee (FOMC) meeting begins Tuesday morning and ends Wednesday afternoon with a statement. Also, a U.S. high-level trade delegation will travel to China later this week to try to avert a trade war between the world’s two largest economies. President Trump late Monday decided to delay by one month implementing on the European Union proposed tariffs on aluminum and steel. Tariffs are in effect for Russia and China.

On Friday is the U.S. employment report from the Labor Department—arguably the most important U.S. data point of the month.

The key “outside markets” on Tuesday morning see the U.S. dollar index trading higher and at a nearly four-month high.

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The grain futures markets have come back to life recently. World supply and demand fundamentals are tilted in favor of the corn and soybean market bulls, while the wheat market is being supported by a severely drought-damaged hard red winter crop in the U.S. plains states. Importantly, it appears that speculative money from the big traders (called “funds”) is starting to flow back into the grain markets on the long side. And on top of that we are just into the planting and growing season for U.S. corn and soybeans. All of the above add up to what will likely be very active grain markets for the next few months. Check out my daily reports for those early clues on bigger price moves and potential price trend changes in the grains, and other markets. Stay tuned!

Monday, April 30–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. Solid corporate earnings reports released recently have supported world stock markets.

Two important meetings will have the attention of the world marketplace this week: the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday, and the U.S. high-level trade delegation that will be in China later this week. And then on Friday is the U.S. employment report from the Labor Department—arguably the most important U.S. data point of the month.

The key “outside markets” on Monday morning see the U.S. dollar index trading firmer. Prices last week hit a 3.5-month high. Meantime, Nymex crude oil prices are lower and trading just above $67.00 a barrel. The U.S. oil rig count hit a three-year high last week, which is pressing oil prices lower today.

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

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Strong corporate earnings reports coming out of the U.S. late this week are helping the stock market bulls. A decline in government bond yields late this week is also a bullish development for equities.

In overnight news, a meeting between North Korean and South Korean officials, including North Korea’s Kim Jong Un and South Korean President Moon Jae-in made dramatic progress, with a peace treaty signed declaring the end of the Korean War that was fought 65 years ago. This shocking development has many wondering if Kim Jong Un is sincere.

The U.K.’s gross domestic product grew only 0.1% in the first quarter, which is the slowest growth rate for the country in five years.

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If you trade the currencies, you certainly noticed that the past couple weeks have seen stronger-trending price moves. The question is, are these moves sustainable? History shows that price trends in the currency markets tend to be stronger and longer-lasting that price trends in other markets. See on the daily bar chart for the Euro currency futures that prices are in a downtrend and have this week hit a 3.5-month low. The Euro bears have downside momentum to suggest more price pressure in the near term. Stay tuned!