RJO FuturesCast

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Daily Report

Stocks on The Move

Posted 09/05/2018 10:21AM CT | Greg Perlin

As we watch price action this morning, the S&P is down 13 at 2884, the Dow is down 50 and the tech heavy Nasdaq is down 100 led by Apple and Facebook. We have some CEO’s of major tech companies testifying today in congress and my gut is telling me that could be the reason for the recent dip. The stock market continues to focus on trade tensions with China and Canada. Canada and the U.S. will meet later today to resume trade talks and try to come to a resolution. We have quite a few Fed speakers throughout the day, so traders should be on guard for any verbiage on rates. Tomorrow, we have ADP and Friday we have the monthly employment number at 7:30 AM. The street is looking for payrolls to rise to 190K vs last month 157K. Investors should pay close attention to average hourly earnings which is the big key for Fed officials as the “key number” that is being watched closely by all fed members.   We are looking for a reading of 2.8%. Fed officials have stated numerous times that they would like to see wage inflation, meaning more people in the workforce earning more money which would increase spending and cause inflation. We have not seen much wage inflation this year, as wages have been holding firm for the most part. Technically the chart on the S&P looks to be a bit toppy and it would not surprise me one bit to see the market continue to trade sideways or lower, especially if trade tensions persist.

E-Mini S&P 500 Sep ’18 Daily Chart

E-Mini S&P 500 Sep '18 Daily Chart  

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Greg Perlin

Senior Market Strategist
Greg is a former Chicago Board of Trade member. He was an independent floor trader, pit broker and floor broker with Cantor Fitzgerald. Some of his clients included traders from Morgan Stanley and Lehman Brothers. He also acted in the capacity of desk manager for the morning trade desk. Greg was part of the elite Lind Plus Division for 10 years before joining RJO Futures in 2011.
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