Stocks slide after Fed's Powell emphasizes 'wait-and-see' stance on rates | Daily Outlook

(MENAFN – FxPro) – Powell said Fed still in ‘wait-and-see’ mode on potential rate cuts

– Fed’s Bullard not in favor of half point rate cut in July

– Housing data and consumer confidence miss estimates

– U.S., Chinese officials agree to keep talking, report says

Stocks slid lower on Tuesday after Federal Reserve President – Jerome Powell said the central banks was still monitoring the economy for signs of weakness and would seek to avoid a knee-jerk reaction in terms of cutting benchmark interest rates.

The Dow Jones Industrial Average fell 0.6%, or 178 points, to 26,550 in intraday trading, while the S & P 500 index lost 25 points, or 0.8%, to 2,919 and the Nasdaq Composite Index gave up 119 points, or 1.5%, to 7,886.

Stocks already were lower earlier on Tuesday after fresh U.S. housing and consumer confidence data came in weaker-than-expected, which potentially could give the Federal Reserve more ammunition to cut rates in the near future.

They slipped further after St. Louis Fed President James Bullard said he was not in favor of a ‘huge action’ on rates in July.

Powell, who was speaking at the Council on Foreign Relations in New York, took a more measured approach than Bullard, signaling only that an interest-rate cut in July is not a done deal.

Wall Street currently has the odds of a rate cut in July at 100%, according to data from the CME Group.

Stocks slide after Fed’s Powell emphasizes ‘wait-and-see’ stance on rates, MarketWatch, Jun 25

MENAFN2506201901560000ID1098685405

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Stocks slide after Fed's Powell emphasizes 'wait-and-see' stance on rates | Daily Outlook

(MENAFN – FxPro) – Powell said Fed still in ‘wait-and-see’ mode on potential rate cuts

– Fed’s Bullard not in favor of half point rate cut in July

– Housing data and consumer confidence miss estimates

– U.S., Chinese officials agree to keep talking, report says

Stocks slid lower on Tuesday after Federal Reserve President – Jerome Powell said the central banks was still monitoring the economy for signs of weakness and would seek to avoid a knee-jerk reaction in terms of cutting benchmark interest rates.

The Dow Jones Industrial Average fell 0.6%, or 178 points, to 26,550 in intraday trading, while the S & P 500 index lost 25 points, or 0.8%, to 2,919 and the Nasdaq Composite Index gave up 119 points, or 1.5%, to 7,886.

Stocks already were lower earlier on Tuesday after fresh U.S. housing and consumer confidence data came in weaker-than-expected, which potentially could give the Federal Reserve more ammunition to cut rates in the near future.

They slipped further after St. Louis Fed President James Bullard said he was not in favor of a ‘huge action’ on rates in July.

Powell, who was speaking at the Council on Foreign Relations in New York, took a more measured approach than Bullard, signaling only that an interest-rate cut in July is not a done deal.

Wall Street currently has the odds of a rate cut in July at 100%, according to data from the CME Group.

Stocks slide after Fed’s Powell emphasizes ‘wait-and-see’ stance on rates, MarketWatch, Jun 25

MENAFN2506201901560000ID1098685405

Read More Here...

Mattress Warehouse Announces Opening of New Location in Salisbury, NC

Mattress Warehouse Announces Opening of New Location in Salisbury, NC – Business News Today – EIN News

Trusted News Since 1995

A service for global professionals · Wednesday, June 26, 2019 · 489,029,974 Articles · 3+ Million Readers News Monitoring and Press Release Distribution Tools News Topics Newsletters Press Releases Events & Conferences RSS Feeds Other Services Questions?

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Mattress Warehouse Announces Opening of New Location in Bridgeville, PA

Mattress Warehouse Announces Opening of New Location in Bridgeville, PA – Business News Today – EIN News

Trusted News Since 1995

A service for global professionals · Wednesday, June 26, 2019 · 489,046,682 Articles · 3+ Million Readers News Monitoring and Press Release Distribution Tools News Topics Newsletters Press Releases Events & Conferences RSS Feeds Other Services Questions?

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Bursa Malaysia fall in early trade

KUALA LUMPUR: Shares on Bursa Malaysia fell in early trade in line with regional and US stocks performance amid lack of catalysts on the local front.

At 9.10am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 3.22 points to 1,673.39 from yesterday’s close of 1,676.61.

The index opened 2.38 points lower at 1,674.23.

Losers beat gainers led losers 121 to 84 with 188 counters unchanged, 1,500 untraded and 23 suspended.

Turnover stood at 99.75 million worth RM46.22 million.

Malacca Securities Sdn Bhd said the FBM KLCI remained toppish.

“We continue to think that a pullback is overdue after the near 100 points gain over the past month.

“We maintain our view that the upsides were already overdone as there is little change to the corporate Malaysia’s fundamentals that also led to the valuation perching at the top end of its historical forward averages,“ it said in a note today.

It said investors’ attention also shifted to the upcoming meeting between the US president Donald Trump and his Chinese counterpart Xi Jinping at the Group of 20 summit in Japan, to see if the two leaders could salvage any hope on their deadlocked trade negotiations.

Overall, the broader market is seeing reduced following, amid the lack of positive leads, despite continued institutions support on selected index-linked stocks.

Hence, it sees the FBM KLCI to further consolidate over the near term with immediate support at 1,670 -1,672 levels, while resistances are at 1,682 and 1,689, respectively.

The overnight S&P 500 was down by one per cent to 2,917.38 while Dow Jones dropped 0.7 per cent to 26,548.22 after Federal Reserve Chairman Jerome Hayden Powell warned of the increasing downside risks to the economy.

Among heavyweights, Maybank dropped one sen to RM8.92, Public Bank was eight sen lower at RM22.94, Tenaga went

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Asian markets quiet on lowered expectations for Fed rate cut, U.S.-China trade deal

Asian markets were mixed in quiet trading Wednesday, as investors’ recent enthusiasm was tempered by comments by Fed Chairman Jerome Powell, while U.S. officials lowered expectations for the expected meeting between Presidents Donald Trump and Xi Jinping at the G-20 meeting this week.

Japan’s Nikkei NIK, -0.61%   fell 0.6% while Hong Kong’s Hang Seng Index HSI, +0.05%   was about flat. The Shanghai Composite SHCOMP, -0.23%   dipped 0.2%, while the smaller-cap Shenzhen Composite 399106, +0.04%   gave up early gains. South Korea’s Kospi 180721, -0.04%   gained 0.2% and Taiwan’s Taiex Y9999, -0.47%    retreated 0.3%. Benchmark indexes in Singapore STI, -0.29%   and Indonesia JAKIDX, +0.11%   were about flat, as was Australia’s S&P/ASX 200 XJO, -0.09%  .

Among individual stocks, SoftBank 9984, -1.51%   fell in Tokyo trading, as did Fast Retailing 9983, -1.23%  and Honda Motor 7267, -0.26%  . In Hong Kong, Sunny Optical 2382, +2.16%   and meat processor WH Group 288, +0.64%   gained while property companies, such as Sun Hung Kai 16, -1.57%  , fell. SK Hynix 000660, +3.45%   surged in South Korea while Taiwan Semiconductor 2330, -1.47%   slipped in Taiwan. Rio Tinto RIO, +0.64%   rose slightly in Australia.

On Wall Street, discouraging economic data and cautionary remarks from the head of the Federal Reserve weighed on the market.

The sell-off marked the third straight loss for the market and the biggest drop this month for the Dow Jones Industrial Average and the S&P 500 index, which hit an all-time high only last week.

In an early afternoon speech, the Fed‘s Powell noted that the economic outlook has become cloudier since early May amid uncertainty over trade and global growth. Earlier Tuesday, reports showed a decline in consumer confidence and more weakness in the housing market.

The S&P 500

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Powell: Uncertainties growing for economy

WASHINGTON — Federal Reserve Chairman Jerome Powell said Tuesday the outlook for the U.S. economy has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates.Speaking to the Council on Foreign Relations in New York, Powell said the Fed is now grappling with the question of whether those uncertainties will continue to weigh on the outlook and require action.Powell did not commit to a rate cut but said the central bank will closely monitor incoming data and be prepared to “act as appropriate to sustain the expansion.”“The crosscurrents have reemerged, with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy,” Powell said.Many economists believe the Fed could decide at its next meeting on July 30-31 to cut its key policy rate, something it has not done since 2008.But markets showed disappointment with Powell’s comments, which suggested a rate cut was not certain. That followed separate comments Tuesday by James Bullard, head of the Fed’s St. Louis regional bank, who said that he believed a quarter-point cut in July would be sufficient as an insurance move against a possible severe economic slowdown.The S&P 500 dropped 1 percent to 2,917, its biggest loss of the month, while the Dow Jones Industrial Average fell 179 points or 0.7 percent, to 26,548.In addition to disappointment with the Fed comments, reports showing a drop in consumer confidence and weakness in the housing market added to investor gloom.In an interview with Bloomberg television, Bullard said an “insurance cut” of a quarter-point would be enough to protect against a sharper-than-expected slowdown in economic growth and a half-percentage point cut would be “overdone.” Bullard last week cast the lone dissent

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Their view: Why ‘maximum pressure’ on Iran could backfire

Middle East policymakers in Washington these days should take some advice from that noted diplomat, Bob Dylan.

His adage “When you ain’t got nothing, you got nothing to lose” is getting tested with the Trump administration’s “maximum pressure” sanctions regime on Iran. The outcome of this particular experiment could well determine the direction of oil prices as the U.S. heads toward presidential elections next year.

As the recent attacks on oil tankers and a U.S. unmanned drone demonstrate, in military terms it would be relatively easy for Iran to cause disruptions in the Strait of Hormuz, a bottleneck through which about a third of the world’s seaborne oil passes.

The narrowest gap between Omani and Iranian territory in the Strait isn’t much wider than the Strait of Dover. One war-games simulation of a U.S.-Iranian-style conflict in 2002, the Millennium Challenge, resulted in the near-destruction of the “home side” U.S. fleet by an array of guerrilla tactics, such as flotillas of small boats and motorcycle couriers deployed by the “enemy” Iranian team.

Even with President Donald Trump’s latest sanctions on Iran’s leaders and their response Tuesday promising an end to diplomatic engagement, full-blown conflict or a blockade in the Strait is an unlikely outcome. But the relative simplicity of such disruption is a reminder that Tehran’s tenuous investment in the global political and economic order, rather than its military capacity, is the major factor preventing the situation from deteriorating further. That makes Washington’s attempts to erode Iran’s political and economic standing a high-risk game.

This dynamic is most obvious in trade. A key reason that Iran needs the Strait of Hormuz open is because its own crude and natural gas goes through the same passage as the barrels coming from Saudi Arabia, the United Arab Emirates, Kuwait,

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Futures Options Writing + Dow Jones CASH Index Chart + Levels 6.26.2019

Futures Options Writing + Dow Jones CASH Index Chart + Levels 6.26.2019
Tuesday, June 25, 2019

by Ilan-Levy Mayer of Cannon Trading Company, Inc.


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Futures Options Writing

Have you ever wondered who sells thefutures optionsthat most people buy? These people are known as the option writers/sellers. Their sole objective is to collect the premium paid by the option buyer. Option writing can also be used for hedging purposes and reducing risk. An option writer has the exact opposite to gain as the option buyer. The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. When writing naked futures options your risk is unlimited, without the use of stops. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance. So why would anyone want to write an option? Here are a few reasons:

Most futures options expire worthless and out of the money. Therefore, the option writer is collecting the premium the option buyer paid. There are three ways to win as an option writer. A market can go in the direction you thought, it can trade sideways and in a channel, or it can even go slowly against you but not through your strike price. The advantage is time decay. The writer believes the futures contract will not reach a certain strike price by the expiration date of the option. This is known as naked option selling. To hedge against a futures position. For example: someone who goes long cocoa at 850 can write a 900 strike price call option with about one month of time until option expiration. This allows you to collect the premium of the

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Fed chairman says economy facing growing uncertainties

WASHINGTON — Federal Reserve Chairman Jerome Powell said Tuesday the outlook for the U.S. economy has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates.

Speaking to the Council on Foreign Relations in New York, Powell said the Fed is now grappling with the question of whether those uncertainties will continue to weigh on the outlook and require action.

Powell did not commit to a rate cut but said the central bank will closely monitor incoming data and be prepared to “act as appropriate to sustain the expansion.”

“The crosscurrents have reemerged, with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy,” Powell said.

Many economists believe the Fed could decide at its next meeting on July 30-31 to cut its key policy rate, something it has not done since 2008.

But markets showed disappointment with Powell’s comments, which suggested a rate cut was not certain. That followed separate comments Tuesday by James Bullard, head of the Fed’s St. Louis regional bank, who said that he believed a quarter-point cut in July would be sufficient as an insurance move against a possible severe economic slowdown.

The S&P 500 dropped 1% to 2,917, its biggest loss of the month, while the Dow Jones Industrial Average fell 179 points or 0.7%, to 26,548.

In addition to disappointment with the Fed comments, reports showing a drop in consumer confidence and weakness in the housing market added to investor gloom.

In an interview with Bloomberg television, Bullard said an “insurance cut” of a quarter-point would be enough to protect against a sharper-than-expected slowdown in economic growth and a half-percentage point cut would be “overdone.” Bullard

Read More Here...