A combination of positive earnings and comments from the Treasury Secretary had the stock markets moving up again. The US Dollar showed some strength and wiped out losses from earlier in the week. Secretary Mnuchin said a tax reform package is progressing. The markets loved this and the S&P 500 had the second best day since March on the rally. Financials earning reports had the market moving higher on good news, just as it brought the market down earlier in the week.
The comments from the Treasury Secretary gave brought back the idea that tax reform may still be in the near future. His remarks along with comments from Fed President Robert Kaplan (Dallas) had a June rate hike back in play. We went from a less than 50 % probability to an over 60% likelihood in less than 48 hours, that the Fed will take action at the June meeting.
All concerns have not been eliminated yet. Elections in Europe with a focus on France could have a big influence on trading ahead of the weekend. The geo-political situation is still tense. The situations with North Korea, and Syria continue to remain, and give plenty of reason to remain a bit risk averse. If those situations flare up, even if only briefly, it could send the markets into a downward trend in quick fashion.
John Weyer
Director Commercial Hedging
Toll Free: 1 888 391 7894
Direct: 1 312 985 0934
Fax: 1 312 256 0109
WALSH TRADING INC.
53 West Jackson Boulevard, Suite 750
Chicago, Illinois 60604
Walsh Trading, Inc. is registered as an Independent Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.