It's Fed Day And That’s A Big Deal For The Stock Market
Michael Kramer | Jun 10, 2020 06:50AM ET
Stocks have been bouncing around overnight, with futures up and now down. Meanwhile, shares in Europe are all down slightly. But none of this matters at the moment because everything is likely to change later today after the FOMC meeting.
Again, I don’t envy Jay Powell, as he has an incredibly tough job, and his day will not be easy. He has come a long way since that December 2018 meeting that saw the market meltdown during his press conference. I’m not suggesting the same happens today, because I have no clue. But what he has to say is very important. Also, what will be key are those dot plots, and what the Fed sees for the rate of recovery for the US economy.
Remember, this is a quarterly meeting, so there are a few extra details that will come out today, that we usually don’t get. So will the Fed project a “V,” “U,” “L,” or “checkmark” recovery?
Watch the yen. It tells a story.
S&P 500 futures stalled out for the second day in a row around 3230. Keep an eye on support at 3,190; if it breaks, it forms a short-term double top that could result in a decline to 3120.
The German DAX is also at an important support level at 12,400.
The dollar continues to decline and is sitting on support at 96. That is a significant level.
Get The News You Want
Cisco Systems (NASDAQ:CSCO) was downgraded to Neutral from Outperform at Baird; the firm keeps a $48 price target. The stock has recovered nicely, but it does find some strong resistance that appears to be reasonably healthy around $48.25, with potential room to rise to $50.25, and a gap fill.
Exxon Mobil (NYSE:XOM) is falling today, along with the price of oil. I noted the other day some bearish options betting in this one, with the potential to fall back to around $50, and even as low as $48.
Chevron Corp (NYSE:CVX) doesn’t appear to be all that different with support around $87.50.
Anyway, that’s all for today.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.