NASDAQ Futures Hit Another Record High

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STOCK INDEX FUTURES

Stock index futures are higher for the fourth day of gains. The advance is being led by the NASDAQ, which hit new record highs, as investors’ focus switched to strong corporate earnings results.

In addition, traders have been encouraged by the Federal Reserve, which said it doesn’t plan to pull back on supportive policies in the near term.

The 8:45 central time July PMI manufacturing index is expected to be 62.1.

The technical aspects remain positive for stock index futures.

CURRENCY FUTURES

The U.S. dollar index remains near a four-month high as demand for safe-haven assets remains strong.

In the weeks ahead it is likely that the flight to quality influence that the greenback has enjoyed recently will dominate over other market influences.

The euro currency firmed on news that the IHS Markit euro zone composite PMI rose to 60.6 in July 2021, from 59.5 in the previous month and above market forecasts of 60.0.

The IHS Markit Germany composite PMI advanced to 62.5 in July, easily surpassing market expectations of 60.8.

Retail sales in the U.K. were up 0.5% month-over-month in June of 2021, following a downwardly revised 1.3% increase in May and slightly higher than the forecasts of a 0.4% gain.

The IHS Markit/CIPS U.K. composite PMI fell to 57.7 in July 2021, from 62.2 in the previous month and well below market expectations of 61.7.

INTEREST RATE MARKET FUTURES

Some flight to quality longs are being liquidated in light of strong stock index futures.

The interest rate futures markets have been telegraphing for several months clues about the state of the global economy.

The U.S. Treasury yield curve has been flattening since May. Shorter-dated yields have been steady, while longer-dated yields have declined. A flattening yield curve suggests a slower rate of economic growth in the future.

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Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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