After Monday’s uninspiring session, US index futures are suggesting meaningful gains will be seen at the open after news that a deal had been struck to avert another US government shut down broke. The agreement hasn’t however been finalised and there’s also the matter of Trump’s border wall with Mexico which remains unanswered. Whilst funding border security, the agreement doesn’t include money for a physical barrier, but the President is vowing that it will be built regardless. An escalation of this could well prove negative for stocks.
The economic calendar remains incredibly quiet with JOLT job openings set to be the day’s main highlight. The long tail of earnings season continues too with a slew of smaller companies reporting although the combination of Denny’s and Molson Coors Brewing could well provide some insight as to consumer demand in the US. Further talk of progress when it comes to a trade deal with China also has the potential to be jumped upon – positive signals were seen last night, but with a leaders’ summit not taking place this month, extending the deadline for the next round of tariff increases should be seen as the priority.
Ahead of the open we’re calling the DOW up 147 at 25200 and the S&P up 14 at 2724.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Two-year yields have covered their prior six-month range in the last week alone – and whether or not this move is sustainable matters a lot