Last Week's Close

E-mini S&P 500 (June): Settled at 3880.75, down 19.00

E-mini Nasdaq-100 (June): Settled at 12,794, down 212.25

U.S. benchmarks finished poorly again yesterday. Early signs of strength across each index dissipated as the session unfolded; the Nasdaq was first to go, slammed at the opening bell, then the Russell midday. The S&P followed, and the Dow was the last— although the Dow finished positive by 13 ticks, it was 1% from its session high. 

Fears tied to lockdowns in Europe are certainly weighing on sentiment and buoying the U.S. Dollar, which also adds pressure to risk-assets. Additionally, the spread between the U.S. 10-year Note and German 10-year Bund is back to that of January last year and this, too, is supportive to the U.S. Dollar. 

On the economic calendar, final GDP for Q4 came in a touch better at 4.3% versus 4.1% on the preliminary read, but the internals disappointed. Weekly Jobless Claims were much better than expected with both Continuing and Initials Claims hitting a pandemic low on the heels of reopenings and stimulus. 

A deluge of Fed speakers beginning with Governor Richard Clarida and NY President John Williams at 9:10 a.m. CT, Atlanta President Raphael Bostic at 11:00 a.m. CT, Chicago President Charles Evans at noon CT, and San Francisco President Mary Daly at 6:00 p.m. CT will certainly make a mark on the session as they are all 2020 voters. 

However, it’s President Biden’s first official press conference at 12:15 p.m. CT that will highlight the day. He’s expected to unveil the details of a massive infrastructure spending plan, but the market’s worries are on how the plan will be paid for; participants fear capital gains restructuring, as well as a wealth tax. 
Lastly, traders should keep an eye on the 7-year Note auction at noon CT.

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