Daily Morning Report

Wednesday, March 14–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The world marketplace is still watching developments in the Trump administration after President Trump unceremoniously fired his secretary of state, Rex Tillerson, on Tuesday. The Trump administration turmoil is an unsettling element for the marketplace due to the uncertainty regarding what could happen next.

The key economic data point of the day Wednesday is the U.S. producer price index report for February. PPI is forecast to come in at up 0.1% from January. The U.S. consumer price index was reported on Tuesday and it was deemed tame.

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Tuesday, March 13–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The key economic data point of the day Tuesday will be the U.S. consumer price index report for February. The CPI is expected to come in at up 0.2% from January and up 2.3%, year-on-year. Inflation readings from the world’s major economies have been creeping up recently, which has caused a bit of concern among traders and investors. However, with most of the world inflation data being reported near or just above a 2.0% rise recently, most agree there is no cause for alarm. Most major central banks of the world actually want to see an annual inflation rate of right around 2.0%.

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The past several weeks have seen solid rallies in the grain markets that have not been seen for many months. Those rallies were driven mostly by dry weather concerns in Argentina that boosted soybeans, and dry weather worries in the U.S. Plains states that rallied the wheat market. However, weather-inspired rallies generally peter out before the actual weather damage is fully realized for the crops. Futures traders tend to factor in expected market events before the come to conclusions. This week will be critical for the grain markets. For the rallies in the grains to extend, the bulls need to step up this week. If they don’t, then it will likely be several weeks of sideways to lower price action ahead of the U.S. planting and growing season for soybeans, and U.S. harvest for wheat. Stay tuned!

World stock markets were mostly higher overnight, following the lead of the U.S. stock market on Friday, which rallied in the wake of an upbeat U.S. employment report that showed healthy jobs gains amid inflation that is not deemed problematic. U.S. stock indexes are pointed toward higher openings when the New York day session begins.

The marketplace is still digesting last week’s U.S. implementation of trade tariffs on steel and aluminum. The European Union wants to talk to the U.S. on the matter, while China warned it will retaliate for the U.S. tariffs.

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Friday, March 9–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets traded near steady in quieter action overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

The most important U.S. economic report of the month is on deck today—the employment situation report for February from the Labor Department. The key non-farm payrolls number is forecast to come in at up 205,000. A significant miss on the forecast is likely to gyrate the markets, at least for a bit. The wages component of the jobs report will also be closely scrutinized for a gauge on inflation.

Reports overnight said a meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un is set for May. However, many are skeptical such a meeting will actually take place. Still, the news adds to the upbeat investor risk appetite presently in the world marketplace.

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The gold market has seen choppy and sideways trading recently, as bulls and bears struggle for near-term technical control and with neither gaining much advantage. The direction in which gold prices break out above the resistance line or below the support line will likely be the next trending move of the precious yellow metal. Stay tuned!