Don’s Notebook May 7, 2018

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Don’s Notebook May 7, 2018

There is no FOMC meeting this week but expect “Fedspeak clues” on inflation strategy from today’s round of Fed Presidents’ events. Speakers today include Federal Reserve Bank of Atlanta President Raphael Bostic, Richmond Fed President Tom Barkin, Federal Reserve Bank of Dallas President Robert Kaplan and Chicago Fed President Charles Evans.

After Friday’s rally we might see a volatile market reengage. Often when the index has tested its 200-day SMA, it has responded in a bullish fashion.

Quarterly earnings are slowing with most of the S&P 500 components having already announced. Today look for E.W. Scripps, Tyson Foods, Sysco, Welbilt, Cognizant Technology, Gannett and Zillow Group.

Overnight:

  • The MSCI Asia Pacific Index climbed 0.1 percent.
  • Japan’s Topix index closed with a 0.1 percent gain as it traded for the first time since last Wednesday.
  • In Europe, the Stoxx 600 Index was 0.2 percent higher in a quiet session due to a holiday in the U.K.
  • Energy shares outperformed amid the higher oil price and Air France-KLM plunged more than 10 percent after the company’s CEO said he plans to resign.
  • S&P 500 futures pointed to a higher open,
  • The 10-year Treasury yield was at 2.963 percent
  • Gold was slightly lower.

It will be a busy week for bond markets in the U.S., with the Treasury due to sell $48 billion of 3-month bills and $42 billion of 6-month bills at 11:30 a.m. today, and a combined $73 billion of 3-, 10-, and 30-year securities by Friday.

These are the expected Weekly Economic Reports. Please check the expected date just to be safe.

  • May 8: JOLTS
  • May 9: PPI
  • May 10: Jobless Claims
  • May 10: Consumer Price Index
  • May 10: Treasury Budget
  • May 11: Import and Export Prices
  • May 11: Consumer Sentiment
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Dr. Don Pratl is Director of Trader Development and Education for TradeStation. He joined TradeStation in 2016 after holding similar roles with other online brokerages. Don’s long career in the financial services industry reflects expertise in administering trading and investment strategy programs for retail investors as well as financial services professionals. Since the 1980s, he has held various positions in areas including CBOE trading floor order execution, marketing, sales, personnel management, training and customer service. Don holds series 3, 4, 7 and 63 FINRA licenses, earned his Ph.D. in Organization and Management, and his M.A. and B.A. in Political Science. He has been an occasional adjunct college instructor since 2004 at a range of institutions, teaching undergraduate, graduate and doctoral students using in-class and online formats.