Indexes are bearish as traders digest today’s Jobless Claims (-3k, 258k), falling for the first time in three weeks while staying near a four-decade low. Continuing claims dropped to the lowest level since June 2000. Filings have been below 300,000 for 86 straight weeks, the longest streak since 1970 and a level typical for a healthy labor market. This will be a primary determinant towards a much anticipated interest rate hike in December. Third-quarter GDP is released tomorrow morning at 7:30 CST and analysts expect +2.5%.
December gold futures are higher, trading near $1,270 (+4), with silver up at $17.65 per ounce. Metals seem to be stabilizing ahead of the US Presidential election in eleven days and the looming GDP release. The December S&P contract is down near 2132 (-2.5 pts.), and the Dow is in the red by 13 points at 18,118. .
Crude oil is stronger at roughly $50.35, trading mid-range as the dollar advanced. Natural gas futures continue to trend higher, in the green at $3234.
Grains are stronger amid a short-covering rally with the US dollar up. Corn ($3.57), wheat ($4.14) and soybeans ($10.25) are up headed into Friday’s session.
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Senior Market Strategist
John Kennedy is a Senior Commodity Market Strategist at RJO Futures. He earned a bachelor's degree in Business Economics from Ohio University, Athens. Upon graduation, John pursued a career in program management with a multinational automotive supplier, based out of Detroit, MI and Munich, Germany. International business experience, coupled with sales and client relationship building, proved valuable assets when John transitioned to Chicago and the futures markets. Living in the downtown area, John enjoys live performances, outdoor sports and politics.