U.S. Session Open: Bulls Still In Control Of Equities
Shain Vernier • 2 min read
Today’s U.S. equity market open has been an extension of yesterday’s bullish action. Currently, the DJIA is rallying and the S&P 500 made all-time highs during the overnight. Many analysts attribute the strength to relative quiet from North Korea and Hurricane Irma failing to deliver the expected devastation.
No News Is Good News For U.S. Equities!
All in all, I tend to agree with the consensus. Take away the impact of a negative news cycle, and this market is strong. Until I see some bearish confirmation, shorting the U.S. equities indices is a risky business.
Understanding the influence that breaking news can have on the market is a crucial aspect of active trading. Adopting a strategy for trading the news successfully can be a great way to turn volatility in your favour.
Today’s U.S. Metrics
The economic calendar for the U.S. markets is pretty thin today. But, as I have discussed at length in recent weeks, many of these releases will play into the FED’s upcoming rate decision. Here are this morning’s metrics:
Event Previous Projected Actual
NFIB Business Optimism Index 105.2 105.0 105.3
Redbook Index (MoM, September) 0.3% NA 0.3%
Redbook Index (YoY, September) 4.4% NA 4.5%
JOLTS Job Openings (July) 6.116M 5.960M 6.170M
The increases in the year-over-year Redbook statistic and JOLTS job openings suggest growth in the retail sector of the U.S. economy. While not market movers, these numbers contribute to the overall economic picture. Over the past month, it seems that the vast majority of these items have been positive.
Overview: The big numbers ahead of the FOMC’s meeting are the CPI and PPI releases slated for later this week. If the Bulls are due to finally lose some ground it may be due to negative metrics ahead of a projected rate hike.