The S&P 500 Index e-mini futures(ES M1) are plummeting lower this morning by 16.00 points to 1296.50 per contract. The catalyst for the decline in the futures market was the weak non-farm payroll report that was released by the Labor Department at 8:30 am EST. Economists had expected a gain of 165,000 new jobs for the month of May, the actual number of new hires for the month of May that was just 54,000 jobs. Several reports are out saying that 64,000 jobs were created by McDonalds Corp.(NYSE:MCD). If this is true, the entire QE-2(quantitative easing) by the Federal Reserve Bank was a failure. How far away is QE-3 now that the major stock market indexes are declining?
On the fulcrum.
We end this week trading at an important fulcrum, or inflection point, across markets, whether for key USD and JPY crosses or for broader risk barometers like the S&P 500 index. Today we discuss market news, themes and what to look for news-wise and chart-wise next week.
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This morning, the S&P 500 Index e-mini futures(ES M1) are trading higher by 0.50 points to 1296.75 per contract. The overall stock market indexes still look very fragile from last week's sharp stock market decline. Many traders and investors are still focusing on the poor job report for the month of May where the U.S. economy added just 54,000 new jobs. The recent pullback in the U.S. Dollar Index has not had as strong of an influence of inflating the stock and commodity markets as it has had in the past, however, it still seems to have an effect.
This morning, the S&P 500 e-mini futures(ES U1) are trading lower by 2.50 points to 1263.00 per contract. The major stock indexes remain weak again after yesterday's sharp stock market sell off. The catalyst for the weakness in the stock markets across the globe remain the same, it is the European debt crisis, high inflation in Asia, and a slowdown in the U.S. economic recovery. All of these factors are playing a part in the decline, however, the real reason for the weak stock market is the stronger U.S. Dollar Index. When the U.S. Dollar Index rallies higher the major stock and commodity indexes will deflate and trade lower. Yesterday, the U.S. Dollar Index futures(DX U1) surged sharply higher by $1.25 to close at $76.07 per contract. This morning, the U.S. Dollar Index is trading higher by another 0.37 cents and the S&P 500 Index is deflating lower again.
This morning, the S&P 500 Index e-mini futures (ES U1) are trading higher by 5.50 points to 1300.00 per contract. The move higher in the futures market comes as investors expect the Greek austerity vote to be passed by the Greek parliament. The U.S. Dollar Index (DX U1) is also declining this morning by 0.20 cents to $75.28 per contract. We should all know by now, when the U.S. Dollar Index declines the major stock indexes inflate and trade higher. Traders and investors must continue to follow the U.S. Dollar Index closely.
This morning, the S&P 500 Index e-mini futures (ES U1) are trading higher by 3.25 points to 1307.50 per contract. Obviously, if the major stock indexes are trading higher before the opening bell that will usually mean that the U.S. Dollar Index is trading lower. The U.S. Dollar Index (DX U1) is trading lower this morning by 0.25 cents to $74.75 per contract. This week, the S&P 500 Index has staged a sharp three day rally, meanwhile, the U.S. Dollar Index has had a sharp three day decline. The U.S. Dollar Index is still dominating every move in the stock market as it continues to trade inverse to the major stock market indexes.
The morning, the S&P 500 Index e-mini futures (ES U1) are trading higher by 1.00 point to 1316.50 per contract. The major stock indexes are expected to trade very light volume today, many institutional traders have already headed out to their vacation spots for the long holiday weekend. The markets in the United States will be closed on Monday for the Independence Day holiday on July 4, 2011. Therefore, it would be prudent to expect somewhat of a flat trading session overall.
Last week, the major stock indexes surged higher for five consecutive trading sessions. The S&P 500 Index climbed higher by 85.00 points to 1339.76 in a single week. The rally was nothing short of explosive in the near term. The last time the major stock indexes surged this high in such a short period of time was last July 2010. This morning, the S&P 500 Index e-mini futures (ES U1) are trading lower by 2.00 points to $1332.75 per contract. Often, after a large point rally that we saw last week, the major stock indexes could be poised for a pause day. The first trading session after a holiday will usually have light volume so we shall see how the markets react. It would be prudent to expect a flat to sideways trading session by the close.
This morning, the S&P 500 Index e-mini futures (ES U1) are plummeting lower by 17.00 points to 1324.75 per contract. The decline in the futures comes as the European Union continues to have major debt problems. Yields on Greek debt are surging higher as the European Union will allow some debt to default as part of a new bailout plan. Italy could be the next country in the EU to need a bailout as the yields in their short term notes soar higher. Where is the Italian bailout money coming from? Perhaps the central banks will simply just print it.
This morning, the S&P 500 Index futures (ES-U1) have traded all over the map. Currently, the S&P 500 e-mini futures are trading lower by 4.00 points to 1314.15 per contract. The problems in Italy, Spain, and the rest of the European Union seem to be spreading across the markets like a wild fire. Last night, the Asian markets tumbled sharply lower. The Hang Seng Index (Hong Kong) lead the declines in Asia, trading lower by over 3.0 percent. The popular and highly followed Shanghai Index (China) ended lower by 1.70 percent. The Sensex and the Nikkei 225 were also down over 1.0 percent. The contagion is spreading from Europe.
This morning, the S&P 500 Index e-mini futures (ES U1) are trading higher by 5.25 points to 1316 per contract. When the futures are trading higher it will usually mean that the U.S. Dollar Index futures (DX U1) are trading lower. That is certainly the case this morning, the U.S. Dollar Index futures are trading lower by 0.15 cents to $76.09 per contract. When the U.S. Dollar Index declines the major stock indexes will usually inflate and rally higher. The opposite effect is true when the U.S. Dollar Index rallies or trades higher, the major stock indexes will deflate and trade lower.
This morning, the S&P 500 Index futures (ES U1) are trading higher 4.50 points to 1316.75 per contract. The problems in the European Union seem to be getting swept under the rug this morning. Many of the credit agencies are saying that Italy's debt problem can be solved. Where have we heard this before? Meanwhile, Irish debt yields soar above 14.00 percent on the 10-year notes. The problems in the European Union are not going to disappear any time soon.