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The ES S&P futures struggled early in the day and rallied over 50 handles late in the session as the MIM showed over $1 billion for sale on the 2:50 cash imbalance. The ES traded 3036.00, tallied a few handles and then sold off down to 2992.00 early in the day. After the low the ES back and filled and rallied all the way up to new high on the closing print at 3054.25.

Economic Calendar

Closing Prices

In the Tradechat Room

MiM

The closing hour was flat, but the half-hour before the 15:00 closing time clock the market swooned 40 points down and up during Mr. Trump’s news conference on China.  Our early net 1B buy at 15:05 may have helped stabilize the market but the early buy  was a sell and by 15:20 the market slid quietly into a positive close to end a quieter May than April.  

Today starts June and a big part of the close will be the Russell 2000 reconstitution.  Here is the schedule for that: 

• Friday, May 8 – “rank day” – Russell US Index membership eligibility for 2020 reconstitution determined from constituent market capitalization at market close.
• Friday, May 22 – “query period” begins – preliminary shares & free-float information for Russell 3000 Index constituents are published daily & queries welcomes (query period runs through June 12)
• June 5 – preliminary US index add & delete lists posted to the FTSE Russell website after 6 PM US eastern time.
• June 12 & 19 – US index add & delete lists (reflecting any updates) posted to the FTSE Russell website after 6 PM US eastern time.
• June 15 – “lockdown” period begins – US index adds & delete lists are considered final
• June 26 – Russell Reconstitution is final after the close of the US equity markets.
• June 29 – equity markets open with the newly reconstituted Russell US Indexes.

Questions?  Please email me: Marlin@mrtopstep.com

Get the skinny when we get it:  Join the MiM. 

Chart of the Day

Top Stories on MTS Overnight:

• NASDAQ Jumps 6.8% in May; Dow, S&P Each Climb Over 4%
• May 31 COVID-19 Test Results
• Day Trade Ideas – U.S. Markets
• Breaking: Rioters set fires, break windows in…
• TradingFibz – Week 20 Outlook
• Introduction to T-Theory – Magic-T
• NCBA addressing market concerns amid coronavirus outbreak
• Global Strife And Uncertainty Spook Markets
• NewsWare Top Stories
• Mapping Police Violence

Our View

First Trading Day Of June

In what is another prediction come true, riots broke out in nearly 30 cities across the US and around the globe in protest of the killing of George Floyd. Based on all the rioting across the US the ES should be down 25 to 35 handles. If that’s the case I suspect the ES will make a low and short cover. Early Friday I posted that the ES could see 3058. No one believed me but as the MIM continued to show larger sales for the end of the month rebalance I said the selling would be paired off and the ES rallied 30 handles in just over 30 minutes. That said, many times when the ES rallies so much late on the close on Friday it usually is met with some try of selling and my guess is the riots will help that cause.

Our view, the news is not good but the ES is totally overlooking it. Our lean is for an early pull back, a midmorning low and then a rally late in the day as the MiM comes online. Will the ES go straight to 3100? I suspect not but it is going there.

Equity movers in early trading, as of 7:34am ET:

Advancers

• AESE +86.5% (+$2.12)
• NTLA +22.8% (+$3.99); Regeneron, Intellia Expand Pact on CRISPR/Cas9 Treatments
• CTIC +22.5% (+$0.23)
• WRTC +19.4% (+$1.25)
• ADT +16.5% (+$1.17)
• PTI +16% (+$0.21); Proteostasis Reports on PTI-129 as Potential Covid-19 Treatment
• GNUS +15.1% (+$0.31)
• NERV +14.6% (+$0.54); Minerva Neurosciences PT Cut to $6 from $18 at Citi
• VSTO +13.8% (+$1.34)
• ALT +12.6% (+$1.17)
• IPI +9.8% (+$0.12)
• RGR +8.9% (+$5.55)
• COTY +8.8% (+$0.32); Coty Signs $4.3B Deal with KKR on Coty Pro Hair Business
• SPCE +8.4% (+$1.43)
• CGEN +7.9% (+$1.22); Compugen Gets FDA Clearance of Ind Application for Opdivo
• ACMR +7.5% (+$4.48)
• AAXN +7.3% (+$5.54)
• ZNGA +6.6% (+$0.60); Zynga Confirms Plans to Buy Toon Blast Maker Peak for $1.8b
• GAN +5.8% (+$1.26)

Decliners

• NBRV -24.1% (-$0.27)
• EVH -21.2% (-$1.88); Evolent’s Partner Not Picked for Kentucky Contract; Shares Fall
• PFE -5.9% (-$2.25); Cancer Summit Presses Toward Treatments in Covid’s Shadow
• NAVB -5.7% (-$0.15)
• MARK -5.3% (-$0.14)
• DVAX -3.6% (-$0.22)
• MLND -3.4% (-$0.09)
• LPSN -3.2% (-$1.20)
• HOME -3.2% (-$0.15)
• TELL -3% (-$0.03); Calvert Details Proxy Votes for Tellurian June 10 Annual Meeting
• HUBS -2.5% (-$4.94); Hubspot Offers $400M of Conv SR Notes
• TGT -2.3% (-$2.83); Amazon Shuts Hubs Near Protests; Target Closes More Stores
• ABT -2% (-$1.92); Abbott Cut to Sell at Goldman; PT $84

Danny Riley is a 39-year veteran of the CME  trading floor. He has helped run one of the largest S&P desks on the floor of the CME Group since 1985.

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