Buying Interest Triggered by Trump Polices Progress

Buying Interest Triggered by Trump Polices Progress

$DIA, $SPY, $QQQ, $RUTX, $VXX

FLASH: Progress of President Trump’s Policies Bringing On Continued Stock Buying Interest

US futures point to a higher start this morning with sentiment boosted by US lawmakers reaching an agreement in principle to possibly avert another government shutdown later this week.

The S&P 500 futures trade 18 pts, or 0.7%, above fair value.

INDUSTRY WATCH

Strong: Energy, Financials, Materials
Weak: Real Estate, Utilities

Congress and President Trump will still have to approve the deal before the 15 February deadline, but the progress was encouraging to hear after the prior impasse.

Investors will also keep an eye for any signs of progress on the latest round of US-China trade talks, which have entered their 2nd day today.

Separately, several Fed officials are expected to speak in separate events today.

  • Fed Chairman Jerome Powell is slated to speak at the Hope Enterprise Corporation Rural Policy Forum in Mississippi at 12:45p EST. 
  • Kansas City Fed President Esther George (FOMC voter) will speak at 5:30p EST
  • Cleveland Fed President Loretta Mester (Non-FOMC voter) will speak at 6:30p EST.

Notable movers pre-market trading this morning.

Shares of Coty (COTY 11.39, +1.73) are up 17.9% after JAB Holding Company commenced a tender offer to acquire up to 150-M additional shares of Coty at $11.65/share in cash. 

Elli Mae (ELLI 99.10, +17.18) has spiked 21.0% after news that the company has entered into a definitive agreement to be acquired by private equity firm Thoma Bravo for $99/share in cash, or approximately $3.7-B.

On the data front, investors will receive the JOLTS – Job Openings report for December at 10:00a EST.

The NFIB Small Business Optimism Index for January decreased to 101.2 from the prior reading of 104.4 in December.

US Treasuries are under some selling pressure, pushing yields higher across the curve. The 2-yr yield is + 3 bpts to 2.51%, and the 10-yr yield + 2bpts to 2.68%.

.DXY is down 0.1% to 96.93.

NYMEX WTI Crude Oil up 2.3% to $53.59bbl.

Have a terrific day!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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