© TheStreet Dow Futures Slip Lower Following Best Day on Wall Street Since June: Target Earnings ImpressGlobal stocks mixed following the strongest rally on Wall Street in more than seven months, with Asia lower and Europe posting modest early gains.Bond yields hold steady, while oil and commodity prices dip, as the dollar trades at the highest level in a month against its global currency peers.Core Eurozone inflation for February surprisingly slows to 1.1%, while headline prices remain unchanged, adding downward pressure to regional bond yields.CDC data shows 76.9 million vaccine doses administered as of March 1 as states around the country re-open schools and non-essential businesses.U.S. equity futures suggest modestly softer open on Wall Street ahead of fourth quarter earnings from Target and Kohl’s.
U.S. equity futures slipped lower Tuesday, while the dollar added to recent gains and commodity prices retreated, as Wall Street paused following its strongest rally in more than seven months.
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A milder-than-expected reading for European inflation, which held at an annual rate of just 0.9% last month, could add downward pressure to government bond yields in the region, but with commodity prices falling on the back of uncertain China demand and Thursday’s OPEC meeting that could boost crude production, U.S. stocks are poised for a modest retreat from yesterday’s surprisingly strong surge.
Bonds are likely to remain the catalyst for equity market direction, however, as the underlying strength of the domestic economy continues to improve.
The ISM index of manufacturing activity hit a three-year high last month, January retail sales roared on the back of $600 stimulus checks and the nation’s accelerating vaccine rollout plans — which now including a third candidate after Johnson & Johnson JNJ received emergency use approval from the FDA over the weekend — has lead to state re-openings in Virginia, Massachusetts and the Carolinas.
Corporate profits are set to improve as a result, as well, with S&P 500 earnings expected to rise 21.2% to $331.3 billion over the first three months of the year.
The final three months of 2020, meanwhile, will also top Street forecasts, and with around 96% of the S&P 500 having reported, collective profits are forecast to rise 4.2% from the same period in 2019 to a share-weighted $359.2 billion.
Tuesday’s opening bell, however, is likely to be modestly softer, with futures contracts tied to the Dow Jones Industrial Average indicating a 50 point decline and those linked to the S&P 500, which gained 2.38% yesterday, price for a 12 point pullback ahead of fourth quarter earnings from retailers Target Corp. and Kohl’s Corp. .
Target shares, in fact, jumped 1.9% after the retailer topped Street forecasts for profits and sales thanks in part to a 120% in traffic from its digital channels.
Nasdaq Composite futures are also in the red, and priced for a 40 point decline, although Zoom Video Communications shares are primed for an 8.2% gain after the video conferencing group topped fourth quarter earnings forecasts and gave investors a robust near-term outlook.
The U.S. dollar index was marked 0.26% and trading at a one-month high of 91.273 against a basket of its global currency peers following the weaker-than-expected European inflation data, which increased the attractiveness of higher-yielding U.S. Treasury bonds. Benchmark 10-year notes were little changed at 1.436%.
European stocks were modestly higher in the early hours of trading, with the Stoxx 600 rising 0.3% and Britain’s FTSE 100 adding 0.5% despite weaker commodity prices and pullback in crude.
Thursday’s meeting of OPEC members, as well as non-cartel allies such as Russia, could result in the easing of some of their agreed production cuts now that oil prices are trading near 13-month highs and near-term demand is expected to rebound now that vaccine programs are gaining traction in major economies around the world.
WTI contracts for April delivery were marked 4 cents higher from their Monday close at $60.68 per barrel while Brent contracts for May delivery, the benchmark for global prices, edged 3 cents higher to $63.72 per barrel.
Overnight in Asia, cautious comments on asset bubbles and market over-reach from a key China bank regulator kept regional stocks in the red, with the MSCI ex-Japan index heading into the close of the session with a 0.1% decline. Japan’s Nikkei 225, meanwhile, closed 0.86% lower at 29,408.17 points.This article was originally published by TheStreet.
E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 31587, Weak Under 31450
March E-mini Dow Jones Industrial Average futures are trading higher late in the session on Monday as bond markets calmed after a month-long sell-off, while encouraging updates on COVID-19 vaccines and fiscal stimulus bolstered bets over a swift economic recovery. The Dow was on pace for its best daily gain in nearly four months.
At 21:03 GMT, March E-mini Dow Jones Industrial Average futures are trading 31503, up 591 or +1.91%.
In stock related news, Dow component Johnson & Johnson rose 1.8% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. Tech components Apple and Microsoft Corp rebounded between 1% and 3.9% on Monday.
Finally, President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate.
Daily March E-mini Dow Jones Industrial AverageDaily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 30866 will signal a resumption of the downtrend. The main trend will change to up when buyers take out the closing price reversal top at 32033.
The minor range is 32033 to 30866. The market is currently testing its retracement zone at 31450 to 31587. Trader reaction to this area will determine the next major move by the Dow.
On the downside, the first support is a 50% level at 30793, followed by a retracement zone at 30676 to 30355.Short-Term Outlook
The next major move by the E-mini Dow futures contract will be determined by trader reaction to the minor 50% level at 31450 and the Fibonacci level at 31587.
Trend trading sellers are going to try to stop the buying inside 31450 to 31587. They are going to try to produce a potentially bearish secondary lower top which could lead to further downside pressure.
Aggressive counter-trend buyers are going to try to take out 31587 in an effort to drive the Dow into 32033 and perhaps another record high.’
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX EmpireMore From FXEMPIRE:
Dow soars nearly 675 points on gains for Boeing, Apple Inc. stocks
The Dow Jones Industrial Average is soaring Monday afternoon with shares of Boeing and Apple Inc. delivering strong returns for the blue-chip average. Shares of Boeing and Apple Inc. are contributing about a third of the blue-chip gauge’s intraday rally, as the Dow was most recently trading 673 points, or 2.2%, higher. Boeing’s shares have gained $11.64, or 5.5%, while those of Apple Inc. have risen $5.16 (4.3%), combining for an approximately 111-point bump for the Dow. Other components contributing significantly to the gain include Dow Inc. Goldman Sachs and Travelers A $1 move in any of the Dow’s 30 components equates to a 6.58-point swing.