The major US stock indices are lower in early US trading as the markets digest geopolitical risks (Iran and Isreal), the US port strike and the implications, stronger ADP employment, and Fed policy.
Israel and Iran are on the precipice of a bigger conflict with some saying this is the opportunity to take out some of Iran’s nuclear facilities.
US port strike has leaders saying that they could cripple the US economy if they don’t get their 70% raise. HMMMM. The memory of a port strike and supply shocks is fresh in people’s minds.
ADP employment payment stronger than expectations ahead of the US jobs report on Friday. US yields are trading near the the highs with the 10 year yield trading up 6.5 basis points.
Fed policy as shifted more toward a 25 basis point cut in November. Fed’s Powell put the kibosh 50 basis points when he spoke on Monday.
A snapshot of the stock market 13 minutes into the open issues showing:
Dow industrial average -111.34 points or -0.26% at 42045.63S&P index -34.13 points or -0.60% at 5674.62NASDAQ index -137.98 points or -0.77% at 17772.38
The Russell 2000 is trading down -12 points or -0.54% at 2185.
Technically, looking at the S&P index, the price has broken below its rising 100 hour moving average (blue line on the chart below) of 5685.68. The next target comes in at 5667.21 followed by the 200 hour moving average (green line on the chart below) at 5619.60.
This article was written by Greg Michalowski at www.forexlive.com.
