Morning Update: Stocks Continue Tuesday’s Rally

First Look

Stock futures are trading higher ahead of the open Wednesday. A big Tuesday rally was sparked, in part, by comments from Federal Reserve Chairman Jerome Powell, who said the central bank is monitoring the economy and could cut interest rates if the trade war starts to weaken the economy. Powell’s comments seemed a lot like an explanation of his role in the economy to some pundits, but traders who suffered through a dismal may and bloodbath in tech stocks on Monday were happy to know Powell was paying attention. Meanwhile in Washington, a political battle could be shaping up as Senate Republicans have strongly criticized the President’s plan to put new tariffs on Mexico. How far they will push back on a president who has repeated several times in the last two days that he is not bluffing remains to be seen. The Nasdaq is up 0.68%, the Dow Jones is up 0.57%, the S&P 500 is up 0.53%.

Today's market outlook is Bullish

Strength does not have to be belligerent and loud.
Russell Brand

Stocks on the Move, inc. (CRM), Campbell Soup Company (CPB) and American Airlines Group Inc (AAL) are moving higher this morning, while American International Group Inc (AIG), Linde PLC (LIN) and HollyFrontier Corp (HFC) are headed lower. Cronos Group Inc (CRON), Medtronic PLC (MDT) and Roku Inc (ROKU) were upgraded by analysts this morning, while Cracker Barrel Old Country Store, Inc. (CBRL), Pivotal Software Inc (PVTL) and American International Group Inc (AIG) were downgraded.

International Markets

Stocks in Asia are mixed. The Nikkei 225 is up 1.8%, the Hang Seng is up 0.5%, the Australia ASX All Ordinaries is up 0.42% the Shanghai SE Composite Index is down -0.03% and the Mumbai Sensex is down -0.46%. In Europe stocks are up. The CAC 40 is up 0.52%, the FTSE 100 is up 0.46%, the Euro Stoxx 50 is up 0.4% and the DAX is up 0.35%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.53 at 52.95 per barrel. Brent crude is down -0.23 at 61.74 per barrel. Natural Gas is down -0.01 at 2.41. Precious metals are up this morning. Gold is up 9.22 at 1334.74 per ounce. Platinum is up 10.63 at 831.1 while silver is up 0.06 at 14.83. 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, 862,138 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 588,704 put contracts. The single-session put/call was 0.68 while the 20-day moving average is now at 0.69.

Earnings Expected Today

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    $300.68 - $302.11
  • 52-week Range:
    $302.46 - $233.76
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  • Day's Range:
    $272.19 - $273.26
  • 52-week Range:
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  • Day's Range:
    $192.29 - $193.40
  • 52-week Range:
    $195.55 - $143.46

Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Index 06/01 07:00
ADP Employment Change May 08:15
ISM Non-Manufacturing Index May 10:00
EIA Crude Oil Inventories 06/01 10:30
Fed's Beige Book Jun 14:00

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