Corporate Earnings Support Index Futures
STOCK INDEX FUTURES
Stock index futures are higher due to better than expected corporate earnings reports.
January wholesale inventories declined 0.4% when unchanged was anticipated.
The 8:45 central time February Chicago PMI is expected to be 45.0.
The 9:00 December Case-Shiller home price index is predicted to show a 0.5% decline.
The 9:00 February consumer confidence index is estimated to be 108.5 and the 9:00 February Richmond Federal Reserve manufacturing index is anticipated to be -5.0.
Analysts’ commentary on stock index futures has become overwhelmingly bearish.
The U.S. dollar is lower, and the euro currency is higher.
Analysts expect the European Central Bank will raise key rates by another 50 basis points at its March 16 policy meeting.
The Swiss economy showed no growth in the fourth quarter of 2022. The 0% growth rate missed forecasts of a 0.1% expansion and marked a slowdown from the 0.2% increase in the third quarter.
Japan’s factory output posted the largest decline in eight months. Factory output fell 4.6% in January from a month earlier. The contraction was much bigger than economists’ forecast for a 2.6% decline.
Australian retail sales rebounded in the first month of 2023. Sales increased 1.9% from a month earlier, which compares to the forecast of a 1.5% gain.
INTEREST RATE MARKET FUTURES
Futures are steady to higher at the front of the curve and lower at the long end of the curve.
Most likely the Federal Open Market Committee will increase its fed funds rate by 25 basis points at its March 22 policy meeting, and there is more talk of another 25 basis point hike at the May meeting.
There has been lots of hawkish “Fed speak” lately, while the severely inverted yield curve is becoming even more inverted but continues to get very little attention.
Interested in more futures markets? Explore our Market Dashboards here.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.