Monday am Technical Video
Fractional weakness out of US futures ahead of the historic USA/North Korea summit tonight at 9pm EST-.. Most of the Globe is fractionally positive so not a lot of concern about the contentious rhetoric out of G7 this weekend- New Italian economy minister delivered a good speech over the weekend that could arguably be thought of as a positive driver for European gains this morning.
Most also eagerly anticipating the ruling on AT&T / TWX deal.. and court approval would likely be a positive driver for the M&A landscape. Additionally, FOMC and ECB meetings this week promise to be watched carefully and prospects for further tightening and ECB tapering could help drive yields higher which in turn would likely help US and European Financials- Only real Economic data over the weekend came out of China, where May inflation readings were not too far off expectations- PPI +4.1% vs 3.9%.. and CPI inline
JPM’s Feroli sees 26% chance of recession starting in a year and increasing number of forecasters have weighed in with similar views.. 2019-2020. So ongoing concern about hiking into a possible late-inning recovery
Early movers: GNW, RCII AXON, FSB, SENS, SRE, VVUS, HMNY, EVHC, TTOO, BTI higher.. while on downside- PCG, TPIV, AAOI, ESV, NKTR, OAS, HMY, AU
Knauf to buy USG at deal valued about 7 billion
S&P key levels near March highs 2800.. Above could allow for chance for 2840-50, but important levels at Jan highs 2872 and unlikely to be challenged right away
Crude and Gold lower this am. Yields higher around the globe.. and this looks important and positive for Financials- Bund yields and TNX higher- 2.9645 in TY.
S&P- Push up to 2800 looks likely ahead of FOMC, but this level arguably will be important technically
YIELDS pushing higher and should be beneficial for Financials early in the week- expect TNX to get to 3.05-3.07. and then that should be area to buy dips in TY.. considering fading the move in yields by FOMC