Markets have their own plan
The stock market seemed to take the latest news out of D.C. in stride and continue to move higher. The S&P 500 put in a new high for the second time this week. The surprise removal of the FBI Director did not seem to have much of an effect on the markets. A rally in crude after a large draw down for the week, had stocks moving in the same direction.
Dollar retreats
Federal Reserve President Kaplan (Dallas) hinted that inflation pressures are standing still. This had the U.S. Dollar falling and closing lower for the first time in three sessions. He also gave Fed watchers something to think about. “It could easily be the case the economy will unfold in a stronger way than I expect and we could do more. It’s possible it may unfold in a weaker way and we’ll do less,” is what Kaplan mentioned after a his speech today. He also hinted that it’s possible that the Fed will raise rates less than three times as it has previously stated.
Searching for new highs
I have a feeling the markets are casting aside much of what the political spectrum has to offer. This market is moving on fundamentals and optimism. Tax reform or anything that can sidetrack will probably see some reactions. But for the most part, this market had learned to to pay attention to earnings, not tweets. Look for the S&P futures to try test 2410.00 before the week is over.
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