NDW Morning Pulse

Below are highlights from the NDW Morning Update Video for the morning of 10/7. Access the video on the NDW Morning Update Video page. 

• US futures are lower this morning after the S&P 500 recorded its fourth consecutive up day yesterday and reached a record high.
• The S&P 500 led the major US benchmarks higher yesterday, gaining 0.58%. Gold and silver were also higher as US Treasury yields and the dollar were both down.
• Crude oil (CL/) broke a spread quadruple bottom at $88 and fell back into a negative trend. Crude is up slightly this morning trading a bit below $90.
• While the S&P 500 and Nasdaq have hit fresh all-time highs this week, most of our participation indicators continue to show narrow breadth.
• The ICE BofA High Yield Spread Index (HIGHYIELDSPREAD) reversed up last week, reflecting widening high yield credit spreads, a potential sign of a risk-off posture towards credit emerging in the fixed market.
• Yesterday’s research focused on the quarterly changes to the International Technical Leaders indices. Canada and Japan are the two largest country exposures in the developed international index with finance being the largest sector exposure. Meanwhile, Taiwan is by far the largest country exposure in the emerging markets index at roughly 60% with electronic technology being the largest sector exposure.
• It’s a pretty light week in terms of earnings and economic data but minutes of the last Fed meeting are due out this afternoon and could impact expectations for additional rate hikes. The market is currently pricing in a better than 80% chance of at least one more rate hike by the end of the year.