E-mini S&P 500 (June): Settled at 4164.75, up 38.25
E-mini Nasdaq-100 (June): Settled at 13,919.25, up 125
U.S. benchmarks started the week lower but rebounded yesterday in a show of strength; this bull market is alive and well. Traders can look to a melting pot of narratives to justify the healthy pullback: price action that ran a little too far a little too quickly, geopolitical uncertainties (discussed here through the week), and mounting global Covid-19 cases, just to name a few. Regardless, we do believe some of this volatility is here to stay for at least another week.
A magnificent start to the month and quarter certainly calls for some profit taking, but let us not forget that each month-end so far this year has seen a bat with volatility. Furthermore, next week’s Federal Reserve policy meeting begs to keep things interesting.
A quiet economic calendar picks up to finish out the week, having started with today’s ECB policy decision at 6:45 a.m. CT, followed by a press conference at 7:30 a.m. CT. We also looked to U.S. weekly Jobless Claims at 7:30 a.m. CT, Existing Home Sales at 9:00 a.m. CT, and Kansas City Manufacturing coming up at 10:00 a.m. CT.
Tomorrow wraps up the week with the closely-watched Flash PMI gauges. At the same time, we’re moving into the heart of earnings season and today is an absolute deluge.
In Europe, Nestle, Volvo, and SAP helped sentiment with earnings beats. Although Credit Suisse didn't carry the torch and is down 6%, such a performance from this dog is to be expected. Domestically, AT&T, Dow, Danaher, Blackstone, and DR Horton all reported beats ahead of the bell. Intel headlines after the close.
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