S&P E-Mini Futures Hold Gains after Dow’s Record Open

November 22, 2016 3:57AM CST

Equity futures are holding on to gains after the Dow futures contract opened above 19,000, boosted by President-elect Donald Trump’s plans for a U.S. construction boom.

The December contract in S&P E-Mini futures settled into more neutral territory, and was last up .27 percent at 2,199 in Tuesday’s commodities futures trading session.

Dow futures transcended 19,000 for the first time ever shortly after the open on Tuesday. The S&P 500 traded over 2,200 for the first time and the Nasdaq composite rose 0.3 percent, also trading at fresh record highs, CNBC reported. Rising energy prices and strong quarterly earnings from a raft of food and retail companies also boosted stocks on Tuesday.

Other talk within commodities futures markets centers around the future of interest rate hikes from the Federal Reserve. According to economists, Republican victory in the U.S. elections will break years of gridlock in Congress, which could clear the way for tax cuts and spending on infrastructure that could widen the budget deficit and boost inflation. That in turn will trigger a series hikes by the Fed, starting at its December meeting and continuing into 2017.

According to the CME Group's FedWatch tool, commodities futures market expectations for an interest rate hike in December were 100 percent.

October Existing Home Sales is the only economic report of note to commodities futures markets on Tuesday. Sales reached an annual rate of 5.60 million, 5.9 percent higher than a year ago, according to the National Association of Realtors. The 10-year high far surpassed forecasts of a 5.42 million pace and was due to continued demand in the housing market.

The NAR had forecast sales of 5.36 million in 2016 and 5.46 million in 2017.

Wednesday’s economic calendar contains Weekly Unemployment Claims, October Durable Goods Orders, October New Home Sales, and the October University of Michigan Consumer Sentiment report. Weekly inventory data for Crude Oil and Natural Gas are also released ahead of Thursday’s Thanksgiving Day holiday in the U.S.  Minutes from the U.S. Federal Reserve’s November 2 meeting will also be released.

On Friday, October Advanced Wholesale Inventories are slated for release. Due to the holiday, there’s no U.S. floor trading for metals and energy futures on Comex and the New York Mercantile Exchange on Thanksgiving Day. Futures exchange operator CME Group mandates an early close of 12:45 p.m. CST for energy and metals futures trading markets. Commodities futures markets participants have already begun to thin out ahead of the holiday.

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