Tuesday, January 8–Jim Wyckoff’s Morning Markets Report
European stock markets were mostly higher overnight, but Asian shares were slightly down. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Traders and investors have keener “risk-on” attitudes the first full week of the new year. Perceived progress on U.S.-China trade talks presently taking place in Beijing, ideas of a more dovish Federal Reserve monetary policy in 2019, and a solid U.S. jobs report last week have perked up the marketplace so far this week.
The upbeat attitudes in Asia were somewhat dented today after technology giant Samsung said its fourth-quarter profits will drop 29% due to “mounting macro uncertainties.” The downbeat Samsung news follows a dour outlook issued by Apple last week.
The U.S. government shutdown is into its third week, but the matter is garnering less attention from the marketplace and is not a front-burner issue. President Trump will address U.S. citizens in a speech on a U.S. southern border wall Tuesday evening.
The key outside markets today see the U.S. dollar index higher on a corrective bounce after hitting a two-month low on Monday. The USDX has been trending sideways to lower on the daily chart for three weeks. Meantime, Nymex crude oil prices are higher and trading just above $49.00 a barrel. There are chart clues the oil market has bottomed out, but the bulls still have heavy lifting to do to suggest a price uptrend can be sustained.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales report, the NFIB small business optimism index, the international trade report (not issued because of government shutdown), and the World Bank global economic prospects report.