Daily Morning Report

Thursday, November 2–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

It is a busy day of economic and political activity Thursday.

Traders and investors are expecting U.S. president Donald Trump to nominate Federal Reserve governor Jerome Powell as the next chairman of the Fed. Fed watchers say Powell has monetary policy thoughts that are similar to current Fed Chair Janet Yellen.

House Republicans are also set to unveil a new tax-reform plan, possibly as soon as Thursday.

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Wednesday, November 1–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins, as the indexes overnight hit new record highs.

The world markets showed little reaction to a terrorist attack in New York City that killed at least eight people.

The key “outside markets” on Wednesday morning find the U.S. dollar index higher. The greenback bulls have the overall near-term technical advantage. Meantime, Nymex crude oil futures prices are higher and hit a six-month high overnight. Prices are trading right around $55.00 a barrel.

The Federal Reserve’s FOMC meeting that began Tuesday morning ends Wednesday afternoon with a statement. No monetary policy changes are expected at this meeting, but as usual traders and investors will parse the FOMC statement at the end of the meeting. It’s expected the FOMC will slightly raise U.S. interest rates at the next meeting in December.

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The live cattle, feeder cattle and lean hog futures markets have exploded to the upside this week. Prices on Tuesday closed at bullish monthly high closes, to suggest still more upside price pressure in the near term. The strong rally in the livestock sector, crude oil prices hitting a six-month high this week, and some other major raw commodity markets showing signs of bottoming out are all good news for the raw commodity market bulls. The year 2018 is likely to be a very positive year for the raw commodity market bulls. Stay tuned!–Jim

Tuesday, October 31–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed to slightly weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. U.S. indexes are at or near record highs. Many world stock markets are also at or near record or multi-year highs.

In overnight news, the Euro zone reported its third-quarter GDP at up 0.6% from the second quarter and up 2.5%, year-on-year. The consumer price index was up 1.4% in October versus up 1.5% in September. And the Euro zone jobless rate was at 8.9% in September versus 9.0% in August. All this economic data released Tuesday falls very slightly into the camp of the European Central Bank monetary policy doves.

The Bank of Japan held its regular monetary policy meeting Tuesday and left it unchanged, as expected. The BOJ did lower its price inflation forecasts and said it would keep its very easy monetary policy in place.

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

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed to slightly weaker overnight. China’s stock market was down on worries about its slumping bond markets. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. U.S. indexes on Friday hit record highs. It will be another busy week of U.S. corporate earnings, including Apple and FaceBook results.

It’s a very busy week for U.S. economic data, including the FOMC meeting that begins Tuesday and ends Wednesday afternoon with a statement. Friday brings the U.S. employment report for October. Also, the Bank of Japan and Bank of England hold monetary policy meetings this week.

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The Euro currency futures slumped to a three-month low Friday, in the wake of a dovish European Central Bank meeting held on Thursday. Prices are in a downtrend and the bears have momentum on their side, to suggest more downside price pressure next week. Stay tuned!–Jim