Markets Remain Steady
Zacks Investment Research | Jun 28, 2016 10:18PM ET
As the calendar Q2 winds to a close and we await another earnings season in another couple weeks (though Nike (NYSE:NKE) [NKE ] reported yesterday after the bell — more on this below), before the bell this morning we saw a positive read on Personal Income and Spending for the month of May. Personal Income rose 0.2% while Consumer Spending went up 0.4%.
Both reads are basically in-line with expectations — spending perhaps a bit heavier than anticipated, income a tad light. These also compare with the April numbers of 0.5% in income and 1.1% in spending. Continued, if subdued, strength domestically; keep in mind these reads are on a one-month lag.
Futures are up in the U.S. markets — Dow +118, Nasdaq +30, S&P 500 +15 — which follow the positive results overseas on Wednesday. The FTSE, DAX and CAC were all up more than another percentage point overnight, as were the Nikkei and Shanghai markets. Gold and silver are up this morning, too, and crude oil on both the WTI and Brent are above $48 per barrel.
The Brexit fallout appears to have been managed uncommonly well to this point. The EU summit in Brussels, Belgium has recently wrapped, with the crux of the various discussions basically how firm the EU will be regarding the Great Britain breakup, and how quickly it will take place. Both European Commission President Jean-Claude Juncker and German Chancellor Angela Merkel are pushing to move sooner, and with tough rhetoric regarding what’s being termed as “freedom of movement.”
Merkel does not want EU rules renegotiated for a new British Prime Minister this September (on the 16th the EU will reconvene without a UK representative), and Juncker has said the EU should accept “no nuances” regarding the breakup. That said, Brexit has thus far been an orderly affair; even the GB pound, which sold off precipitously last Friday, has been trading more or less sideways since then. A near-term bottom looks priced into the markets today.
As mentioned earlier, earnings season is right around the corner. We’ve gotten a taste of what’s to come with Nike and General Mills (NYSE:GIS) (Zacks Investment Research
Get The News You Want
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.