Corporate Earnings Reports Remain Strong
Alan Bush of ADM Investor Services - InsideFutures.com - Thu Aug 09, 9:26AM CDT

August 9, 2018

STOCK INDEX FUTURES

U.S. stock index futures are higher, as the second quarter earnings season winds down on a firm note.

The producer price index was unchanged in July when an increase of .2% was expected, and the producer price index, excluding the often volatile food and energy categories, were up .1% in July when a .2% increase was anticipated.

The number of Americans filing applications for new unemployment benefits remains near historic lows.

U.S. initial weekly jobless claims fell 6,000 to 213,000 in the week ended August 4, which compares to consensus expectations for initial claims to be 220,000.

The 9:00 central time June wholesale trade report is estimated to be unchanged.

Of the 440 companies in the S&P 500 that have reported results so far, 78.6% of them have surpassed analysts expectations.

U.S. stock index futures are performing well, with the S&P 500 close to all-time highs in spite of the ongoing global trade uncertainties.

The still relatively low global interest rate environment and the mostly stronger than estimated U.S. corporate earnings reports remain supportive.

CURRENCY FUTURES

The U.S. dollar is higher due to prospects of a fed funds rate hike in September and possibly another one in December.

Yesterday the British pound fell below $1.29 for the first time in almost a year on continuing worries that the U.K. will leave the E.U. without a trade deal.

In addition, there is talk that it will be a long time before the Bank of England will be in a position to increase its key interest rate again.

The Canadian dollar and the Australian dollar are lower in spite of higher crude oil prices.

The Canadian dollar was pressured by news that housing starts in Canada fell 16.2% in July from June.

INTEREST RATE MARKET FUTURES

The Treasury will auction 30 year bonds today.

The probability of a fed funds rate hike at the Federal Open Market Committees September 26 meeting is 96%, which compares to 98% yesterday.

Also, there are increasing probabilities of an additional rate hike in December.

In spite of mostly higher prices today, the longer term trend for futures is lower, especially for the thirty year Treasury bonds.

SUPPORT AND RESISTANCE

September 18 S&P 500

Support 2852.00 Resistance 2866.00

September 18 U.S. Dollar Index

Support 94.780 Resistance 95.230

September 18 Euro Currency

Support 1.16010 Resistance 1.16580

September 18 Japanese Yen

Support .90100 Resistance .90580

September 18 Canadian Dollar

Support .76620 Resistance .77030

September 18 Australian Dollar

Support .7409 Resistance .7460

September 18 Thirty Year Treasury Bonds

Support 142^16 Resistance 143^8

December 18 Gold

Support 1216.0Resistance 1228.0

September 18 Copper

Support 2.7500 Resistance 2.8200

September 18 Crude Oil

Support 66.31 Resistance 67.48

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