Price Action

What Wall Street Expects From Today's Payrolls Reports

With all eyes likely on wage growth indications in the subtext of tomorrow's payrolls report (following The Fed Minutes' comments on full employment), Goldman Sachs is forecasting a better-than-expected 0.3% rebound in average hourly earnings (helped by more favorable calendar effects) and a better-than-expected 180k payrolls print (albeit with a small rise in the unemployment rate). However, they are careful to note that any downside can be blamed on "a considerable drop in temperatures."

Risk On: 2017 Stock Rally Continues As Global Inflation Accelerates

Following another day of upbeat economic data, with growing signs that inflation on both sides of the Atlantic is accelerating, investors rediscovered their faith in the Trumpflation rally, pushing global stocks and US equity futures higher, fuelling a second day of 2017 equity gains ahead of today's release of the Fed's December minutes.

How Goldman Sees The S&P In 2017: First Rise, Then Fall

"S&P 500 will rally to 2400 in 1Q 2017 alongside enthusiasm over corporate tax cuts but budget constraints will limit the magnitude of tax reform and fiscal spending and the index will fade to 2300 by year-end."

RBC Explains What Time To Expect Today's Pension Fund Sell Orders

Expect mechanical pension asset-rebalancing into bonds from stocks (on acct of massive relative performance gap MTD / QTD), most-clearly evidenced by the programmatic ~ half-hour long selling-waves seen in SPX at 9:35am, 11:55am and 3:35pm.  Expect this flow to continue through the new year, as market liquidity simply is not deep enough to ‘take it.’

Global Shares Trade Mixed In Thin Holiday Trade; Yen Rises As China Rebounds

With most global market closed for Christmas holiday, and traders taking the day and the week off, global stocks traded mixed in thin, subdued conditions. Japanese shares fell as the yen gained against the dollar for the fourth straight day after the release of BOJ Minutes and a Kuroda speech, while Chinese equities recovered from earlier losses.

Futures Unchanged In Thin Pre-Holiday Tape; Italian Bank Bailout Lifts European Shares

European stocks halted two days of declines, with the Stoxx 600 fractionally in the green and Italy’s bonds climbing after Monte Paschi requested a bailout and Italy pledged to provide support for its other ailing lenders. S&P futures were little changed among extremely thin volumes while Chinese stocks dropped amid concerns on higher borrowing costs.

Global Stocks Decline As Trading Volumes Collapse Ahead Of Monte Paschi Nationalization

European, Asian stocks and S&P futures all declined amid collapsing volumes, after the Wednesday drop in the S&P500, and after oil prices held losses amid an unexpected increase in supplies, as traders close out trades ahead of the holidays. European stocks edged lower, led by miners, and U.S. stock futures stagnated after the Dow Jones Industrial Average failed to make progress toward 20,000 Wednesday.

S&P Futures Rise Propelled By Stronger Dollar; Europe At 1 Year High As Yen, Bonds Drop

It appears nothing can stop the upward moment of equities heading into the year end, and as US traders walk in, S&P futures are again higher, proppeled by European stocks which climbed to their highest in almost a year, while the USD rose and bonds and gold fell, failing again to respond to terrorist attacks in Ankara, Berlin and Zurich. The yen tumbled after the BOJ maintained its stimulus plan.