Morning Update: Markets pause to parse Powell

First Look

Major U.S. equity indices are below yesterday’s close this morning. Some pull back is probably to be expected after Wednesday’s big rally, which was sparked when Federal Reserve Chairman Jay Powell said interest rates were “just below” the range that could be considered neutral. That’s a statement that seems to leave a lot of room for interpretation, but is decidedly different from the “long way from neutral” Powell used at the beginning of October. The Dow Jones is down -0.15%, the S&P is down -0.26%, the Nasdaq is down -0.48%.

Today's market outlook is Neutral

Courage is not simply one of the virtues, but the form of every virtue at the testing point.
C. S. Lewis

Stocks on the Move

Nielsen Holdings PLC (NLSN), QUALCOMM, Inc. (QCOM) and Mcdonald’s Corp (MCD) are moving higher this morning, while WRKCO INC (WRK), Dollar Tree, Inc. (DLTR) and Tapestry Inc (TPR) are headed lower. TJX Companies Inc (TJX), PPG Industries, Inc. (PPG) and Mcdonald’s Corp (MCD) were upgraded by analysts this morning, while Constellation Brands, Inc. Class A (STZ), Dicks Sporting Goods Inc (DKS) and Ameren Corp (AEE) were downgraded.

International Markets

Stocks in Asia are mixed. The Australia ASX All Ordinaries is up 0.61%, the Nikkei 225 is up 0.39%, the Mumbai Sensex is flat 0% the Hang Seng is down -0.94% and the Shanghai SE Composite Index is down -1.32%. In Europe stocks are mixed. The Euro Stoxx 50 is up 0.7%, the CAC 40 is up 0.38%, the FTSE 100 is up 0.33% and the DAX is down -0.13%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 0.73 at 51.02 per barrel. Brent crude is up 0.62 at 59.38 per barrel. Natural Gas is down -0.12 at 4.58. Precious metals are mixed this morning. Gold is up 6.32 at 1227.55 per ounce. Platinum is down -0.25 at 824.65 while silver is down -0.06 at 14.4. The dollar is mixed compared to the major currencies today. The greenback is down against the euro, down against the Yen and up against the Pound.

Put/Call Ratio

Yesterday, 958,428 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 593,364 put contracts. The single-session put/call was 0.62 while the 20-day moving average is now at 0.7.

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Today's Economic Calendar

What's Happening Period Release Time
Personal Income Oct 08:30
Personal Spending Oct 08:30
PCE Prices Oct 08:30
Initial Claims 11/24 08:30
Continuing Claims 11/17 08:30
Pending Home Sales Oct 10:00
Natural Gas Inventories 11/24 10:30
FOMC Minutes Nov 14:00

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