Stocks Pare Early Losses

October 27, 2017 9:59AM CDT

All three major indices are higher early in Friday morning’s trading session. Several factors have contributed to today’s action. For one, the earnings cycle has continued to pump out impressive numbers. A few of the bigger names in equities reported after the bell yesterday and blew it out of the water. Building on Thursday's post market releases, Friday morning’s GDP number was higher than expected, coming in at 3.0% vs a consensus 2.5%. Higher inventories, strong motor vehicle demand, and strong consumer spending all helped to boost the number. We also saw another solid Consumer Sentiment reading of 100.7. We seem to be making some progress in Washington as the house budget passed, and it appears tax reform has some hope. If all goes well, we could have something done by year end. 

These factors have been able to push the Nasdaq to a new all-time high, while the Dow, S&P, and Russell still have some work to do to overtake the highs we saw earlier in the week. Next week’s news slate is absolutely loaded. The two stars of the show will be the FOMC announcement on Wednesday afternoon and the jobs info on Friday morning.   

Dec '17 Emini S&P Daily Chart

Dec '17 Emini S&P Daily Chart  

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.