Morning Update: Stocks Higher After Fed Drops ‘Patient’

First Look

Major indices are up ahead of the open Thursday. The Federal Reserve is keeping interest rates unchanged, while opening the door to possible future rate cuts. Fed Chairman Jerome Powell remained dovish Wednesday as he gave updates on the central bank’s current stance on monetary policy. Powell dropped his “patient” stance, while signaling the possibility of rate cuts amid fears of a slowing global economy during the lingering trade war. Iran claimed it shot down a U.S. drone over the Strait of Hormuz Thursday. Iran claims that the drone entered Iranian airspace. The United States Central Command has disputed this claim, saying they did not have any aircraft in Iranian territory and that the drone was in international airspace. According to Iran’s Tasnim news agency, Major General Hossein Salami, who is the head of Iran’s Revolutionary Guard Corps, said Iran does not want war with any county but is “completely and totally ready and prepared for war”. The Nasdaq is up 1.27%, the S&P 500 is up 0.92%, the Dow Jones is up 0.84%.

Today's market outlook is Neutral

Little things console us because little things afflict us.
Blaise Pascal

Stocks on the Move

Oracle Corporation (ORCL), Wynn Resorts, Limited (WYNN) and Newmont Goldcorp Corp (NEM) are moving higher this morning, while Carnival Corp (CCL), Darden Restaurants, Inc. (DRI) and Philip Morris International Inc. (PM) are headed lower. Ventas, Inc. (VTR), Nordstrom, Inc. (JWN) and First Financial Bancorp (FFBC) were upgraded by analysts this morning, while Shopify Inc (SHOP), Santander Consumer USA Holdings Inc (SC) and Chubb Ltd (CB) were downgraded.

International Markets

Stocks in Asia are up. The Shanghai SE Composite Index is up 2.38%, the Mumbai Sensex is up 1.25%, the Hang Seng is up 1.18% the Nikkei 225 is up 0.6% and the Australia ASX All Ordinaries is up 0.59%. In Europe stocks are up. The DAX is up 0.84%, the Euro Stoxx 50 is up 0.74%, the FTSE 100 is up 0.68% and the CAC 40 is up 0.66%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 1.88 at 55.64 per barrel. Brent crude is up 1.73 at 63.55 per barrel. Natural Gas is flat 0 at 2.27. Precious metals are up this morning. Gold is up 21.17 at 1381.55 per ounce. Platinum is up 8.1 at 820.29 while silver is up 0.4 at 15.36. The dollar is down compared to the major currencies today. The greenback is down against the euro, down against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 897,759 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 547,291 put contracts. The single-session put/call was 0.61 while the 20-day moving average is now at 0.67.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
Initial Claims 06/15 08:30
Continuing Claims 06/08 08:30
Current Account Balance Q1 08:30
Philadelphia Fed Index Jun 08:30
Leading Indicators May 10:00
EIA Natural Gas Inventories 06/15 10:30

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