Morning Update: Markets Respond to Powell

First Look

Markets are slightly higher before the bell Wednesday morning. Federal Reserve Jerome Powell will give his semi-annual testimony on monetary policy in front of Congressional leaders at 10 a.m. today. Pre-released opening statements seem to point toward a rate cut at the central bank’s July meeting. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with China’s top trade negotiator Vice Premier Liu He on Tuesday. The conversation is the beginning of a new round of trade negotiations and the first point of contact since President Trump met with Chinese President Jinping Xi at the G-20 summit. Additional details about the outcome of the call or future discussions were not released. The Nasdaq is up 0.58%, the S&P 500 is up 0.3%, the Dow Jones is up 0.24%.

Today's market outlook is Neutral

Our virtues and our failings are inseparable, like force and matter. When they separate, man is no more.
Nikola Tesla

Stocks on the Move

Comcast Corporation (CMCSA), Micron Technology, Inc. (MU) and Halliburton Company (HAL) are moving higher this morning, while Unum Group (UNM), CSX Corporation (CSX) and Harley-Davidson Inc (HOG) are headed lower. Comcast Corporation (CMCSA), Total SA (TOT) and Core Laboratories N.V. (CLB) were upgraded by analysts this morning, while BP plc (BP), CSX Corporation (CSX) and Universal Display Corporation (OLED) were downgraded.

International Markets

Stocks in Asia are mixed. The Australia ASX All Ordinaries is up 0.41%, the Hang Seng is up 0.27%, the Nikkei 225 is down -0.15% the Shanghai SE Composite Index is down -0.44% and the Mumbai Sensex is down -0.45%. In Europe stocks are mixed. The CAC 40 is up 0.06%, the FTSE 100 is down -0.04%, the Euro Stoxx 50 is down -0.11% and the DAX is down -0.43%.

Futures and Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 1.31 at 59.14 per barrel. Brent crude is up 1.5 at 65.66 per barrel. Natural Gas is up 0.03 at 2.42. Precious metals are mixed this morning. Gold is down -3.33 at 1394.28 per ounce. Platinum is up 3.81 at 815.93 while silver is down -0.02 at 15.13. The dollar is mixed compared to the major currencies today. The greenback is down against the euro, up against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 941,111 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 548,213 put contracts. The single-session put/call was 0.58 while the 20-day moving average is now at 0.62.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Applications Index 07/06 07:00
Wholesale Inventories May 10:00
Fed Chair Powell Testimony 10:00
EIA Crude Oil Inventories 07/06 10:30
FOMC Minutes Jun 14:00

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