The Fuse
Equity futures are rather muted this morning as market players try to discern some direction following last week’s big surge.
Interest Rates are moving higher today as commodity prices also rise.
News of the weekend that OPEC+ has decided to cut production even more could put a strong bid into crude oil. This morning we see WTI crude up near $80 a barrel again. With holiday driving season getting underway, higher oil prices may translate into higher prices at the pump.
Earnings news this week is rather slow but we’ll hear from retailer JOAN today along with HQY as well. Tomorrow morning brings us CIEN, CBRL, THO and CASY.
Apple has a big WWDC event today where they could announce new phones for later this year or even new products.
Very strong breadth on Friday as the bulls muscled their way to a strong trend day. This is now on a buy signal.
Volume trends were solid again Friday with buyers coming after stocks. We could attribute much of this to short covering, but rallies do start from short covering, too!
We see 4,200 on the SPX 500 as good support now, but would like to see another week above there just to be certain. 4,300 is the next level of resistance, the oscillators are approaching overbought status.
The Internals
What’s it mean?
Pretty strong day again Friday lifted by good feelings from the May jobs report. VOLD was up strong one more time, the start of the month has been very solid. ADSPD showed a trend up day, and see the concentration of ticks again? Green nearly all day on TICK and TICK/Q. Put/calls were lower as well, we saw a significant amount of call buying Friday.
The Dynamite
Economic Data:
- Monday: Factory Orders, ISM Services Index
- Tuesday:German Factory Orders, Euro zone retail sales, Aussie GDP
- Wednesday: Consumer credit, crude inventories
- Thursday: Jobless Claims, Fed Balance Sheet
- Friday: Baker Hughes Rig Count
Earnings this week:
- Monday: SAIC, WDH, GTLB, HQY, JOAN
- Tuesday: CIEN, THO, CHS, GIII, PLAY, CASY,, BASE
- Wednesday: CPB, LOVE, OLLI, JILL, VRA, GME, SMTC, SMAR, RENT, HCP
- Thursday: TTC, SIG, FCEL, DOCU, PL, MTN, NAPA
- Friday: NIO
Fed Watch: Fed Officials are ‘officially’ on a quiet period. The next meeting starts in a week. Fed Futures are seeing a 1 in 4 chance of a rate hike at the June meeting.
Stocks to Watch
Apple – WWDC is happening this week, and all eyes will be on some new products that are in development.
Crude Oil – An OPEC+ meeting was to be held this past weekend, if some production cuts are announced we could see big moves in crude.
VIX – Volatility is down sharply and as such protection is rather cheap to come by. I don’t expect to see volatility this low for much longer.