Equities hit new highs

John WeyerGeneral Commentary

Record Highs

Strong day in the equities on Thursday as both the Nasdaq and S&P 500 put in new all time highs. The S&P 500 closed higher for the sixth session in a row, with the futures trading near 2413 on the close. The Dow futures were up almost 4% on the day, putting in a high of 21,095 before closing the day near 21,970.

Crude slides down

The other big mover today was crude oil. OPEC announced that the production cuts will be extended for another nine months. What made the market drop was the fact that the cuts aren’t larger in number. Crude broke the $50 level, and trade all the way down to 48.45. The July futures contract was down over 5% on the day.

Dollar Holds

After trading down to levels it had not seen since November, the U.S. Dollar may have found some support. Some good economic data (Jobless Claims, Retail Inventories) showed that the we are seeing continued economic growth. This led to a a bullish view for the Dollar. The USD got up to 97.20, coming off the low of 96.80 and closed neat 97.15.

 

Look for continued downward pressure in crude oil. I am looking for the equities to continue their run up on Friday. Heading into a holiday weekend these markets could be light on volume, so there is a chance they could really fly.

 

John Weyer

 

Director Commercial Hedging

 

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