This morning the S&P 500 e-mini futures (ES M1) are trading higher by 1.50 to 1311.50 per contract. This slight move higher in futures comes as WTI oil is trading lower this morning $1.33 to $104.12 a barrel. Over the past few weeks, whenever WTI oil has declined the major stock market indexes have climbed sharply higher. This morning it appears the S&P 500 futures look to be struggling to remain positive ahead of the opening bell at the New York Stock Exchange.
Nothing has really changed in the Middle East as violence and protests remain high. Qatar has agreed to purchase oil from Libya that is now controlled by the rebels. This is the likely reason for the decline oil before the opening bell. Traders and investors must continue to follow the Middle East and North Africa very closely for any new uprisings or disruptions as oil will usually move higher on this type of news.
Personal spending and income increased this morning. Spending was higher by 0.07 percent, meanwhile, income was higher by 0.03 percent. This number is not having a major effect on the stock futures and that is what traders concern themselves with.
The Asian markets were mixed last night. The Nikkei Index (Japan) traded lower by 0.60 percent as the Nuclear reactor crisis remains front and center. The problems in Japan still remains and must continued to be watched closely as radiation levels remain high. The Shanghai Index (China) was higher by 0.21 percent and this should not have much effect on our markets in the United States this morning.
The Pending Homes Sales Index will be released at 10:00 am EST. Most of the recent economic data released has not had much of an effect on the market lately and I’m not sure how much this report will have. The major stock market indexes have continued to rally despite all of the negative news and that must be respected. These major market indexes are getting a bit overbought short term at this time.
Gold and Silver are declining lower this morning. It seems as if gold and silver are trading almost in lockstep with oil. Therefore, traders must keep one eye on oil at all times.
Please do not forget about the European debt crisis. Ireland, Portugal, and Spain, are still in focus despite having little effect on the markets recently.
|S&P 500 Gainers & Losers||Price||% Change|
|Iron Mountain (IRM)||31.88||+2.87%|
|MetroPCS Communications (PCS)||15.95||+2.64%|
|First Solar (FSLR)||153.50||+2.03%|
|Huntington Bancshares (HBAN)||6.71||+1.82%|
|Marriott International (MAR)||36.65||-2.68%|
|Marriott International (THC)||7.10||-1.66%|
|Peabody Energy (BTU)||71.47||-1.60%|
|Diamond Offshore Drilling (DO)||77.40||-1.48%|
|Nabors Industries Ltd. (NBR)||29.18||-1.32%|