Indexes Higher on Strong Earnings Season
STOCK INDEX FUTURES
S&P 500, Dow and NASDAQ futures advanced to record highs due to a strong start to earnings season from banks and other financial companies.
Housing starts in March were 1.739 million when 1.620 million were expected and building permits were 1.7666 when 1.750 million were anticipated.
The 9:00 central time April consumer sentiment index is predicted to be 89.
Stock index futures continue to have upside momentum.
The U.S. dollar index is lower and near a one month low as Treasury yields remain below the recent highs reached last month, while the Federal Reserve maintains its dovish policy stance.
The euro is a little higher and not far from yesterday’s one-month high, as investors await the outcomes of both the Eurogroup and the Eurozone finance ministers meetings.
The euro is firm today despite news that euro zone exports fell in February for the second consecutive month. The European Union’s statistics agency said the currency area’s exports fell by 2.5% in February compared with January, while imports increased by 3.4%.
The consumer price inflation rate in the euro area was 1.3% year-on-year in March, which was the highest since January 2020.
INTEREST RATE MARKET FUTURES
Other than today, recent declines in yields can be partially attributed to overseas money managers, especially in Japan, making large purchases of U.S. government debt.
San Francisco Federal Reserve Bank President Mary Daly said the U.S. economy is still far from making “substantial progress” toward the central bank’s goals of 2.0% inflation and full employment, which is the bar that the Federal Reserve has set for beginning to consider reducing its support for the economy.
Federal Reserve speakers today are Robert Kaplan at 9:45 and also at 12:30.
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