Trump And Europeans Agree To Concessions To Avoid Trade War

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 6 out of 11 markets closed lower: Shanghai Comp -0.71%, Hang Seng -0.48%, Nikkei -0.12%
• In Europe 8 out of 13 markets are trading higher: CAC +0.24%, DAX +1.25%, FTSE -0.02%
• Fair Value: S&P +0.43, NASDAQ +10.63, Dow -24.76
• Total Volume: 1.30mil ESU & 268 SPU traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes Weekly Bill Settlement, Durable Goods Orders 8:30 AM ET, International Trade in Goods 8:30 AM ET, Jobless Claims 8:30 AM ET, Retail Inventories 8:30 AM ET, Wholesale Inventories 8:30 AM ET, EIA Natural Gas Report 10:30 AM ET, Kansas City Fed Manufacturing Index 11:00 AM ET, Fed Balance Sheet and Money Supply 4:30 PM ET.

S&P 500 Futures: Facebook Gets Faced, Down $54.00 In After Market

After a quiet overnight session the S&P 500 futures opened yesterday’s day session printing 2818.75 on the 8:30 CT bell. The first move was a small break to make the low of the day, two ticks lower, followed by a rally up to 2826.00 in the first half hour. From there the futures went back to test the open, holding 2819.00 at 10:15, and then thin to win set in going into the Euro close.

Around midday, the ESU saw a slow grind higher to 2830.50 just after noon, then made the early afternoon low of 2826.50 at 12:30 before rallying up to 2836.00 at 1:45. The futures went on to make a higher late afternoon low at 2831.25 at 2:30, and soon after breaking news hit the tape regarding Trump securing concessions from Europe, which helped the algos push the ES to 2843.25, up +22.25 handles.

The MiM came online showing $50 million to sell, after fluctuating from $450 million to sell to $275 million to buy. Then in the closing minuted the ES continued to climb, finally reaching the high of day of 2849.50, up +28.50 handles at 2:50.

The 3:00 print came in at 2847.50 before trading back down to 2840.00, and at 3:15 the day’s settlement was at 2841.50, up +20.50 handles, or 0.73%. The overall tone of the day was about buying the shallow dip and letting thin to win do its thing, along with help from headline algos taking advantage of a thin market.

In the end, the markets forged higher, but then got kneecapped by Facebook (FB). After the report the stock was down $13.00, but before the futures opened on Globex th had fallen as much as $54.00, losing $150 billion in market cap. In terms of the days overall tone, it was good all day until FB released its earnings. In terms of the days overall trade, volume was strady all day, and picked up significantly late in the session.

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