Tuesday's Close

E-mini S&P 500 Futures (June): Settled at 4132.75, up 12.50

E-mini Nasdaq-100 Futures (June): Settled at 13,975.75, up 167

Yesterday, the Nasdaq set a fresh record and fully completed its recovery after losing as much as 12% from the February 16th peak. Not to be ignored, the S&P set a new record for the 9th day out of the last 10. 

Volatility early yesterday on the Johnson & Johnson news was subdued by contained inflation. Core CPI came in at +1.6% YoY and +0.3% MoM, each only .1% above expectations and far from the feared hot read, but this is something we expected. Additionally, after St. Louis Fed President James Bullard correlated a 75% vaccination rate as a baseline to even begin thinking about a taper, the Johnson & Johnson news could’ve been broadly supportive; Big Tech and Work From Home stocks led the way.

This morning, JPMorgan, Goldman Sachs, and Wells Fargo kick off earnings season. XLF, the Financial sector ETF, has gained 18% so far this year and banks have played a critical role in stabilizing the S&P amid a volatile Q1 for Tech. 

The Coinbase IPO and Federal Reserve speeches highlight the rest of today’s calendar. At our investment advisory, Blue Line Capital, Coinbase is certainly on our radar, but today’s opening price could leave little value relative to its $250 reference price. On Coinbase, Bitcoin set a new record of $64,896 overnight. 

Fed Chair Jerome Powell speaks at 11:00 a.m. CT. He’s followed by New York Fed President John Williams at 1:30 p.m. CT, Fed Governor Richard Clarida at 2:45 p.m. CT, and Atlanta Fed President Raphael Bostic at 3:00 p.m. CT, each a 2021 voter. Dallas Fed President Robert Kaplan rounds out the day, speaking at 5:05 p.m. CT.