US Futures Hover Near ATH's as Banks Crush Stress Tests
US Futures are trading at or near their ATH's ahead of Tuesday's cash open with the S&P flat at 4,281, the Dow up 0.27% to 34,258, the Russell up 0.22% to 2,321, and the Nasdaq down -0.16% to 14,490 as of 8:30AM. The US dollar (DXY) is gaining some ground and is up around 0.30% on the day to 92.16, while the US10Y yield traded around 1.50% after recovering from a light dip yesterday.
Bitcoin is up around 4% on the day to 35,895, while Gold is down -0.70% to $1,768/oz. USOIL is up 0.70% to 73.28, and is on track to grind higher as inflation takes hold. The Vix slipped back to a 15 handle yesterday and is extending losses this morning - we're down around -0.57% and trading at 15.67.
After passing the Fed's stress tests yesterday which showed that banks are firmly above the Fed's caopital minimum's (how could they not be when they're giving the Fed back their capital via the RRP every night), Financials are seeing some notable strength this morning with Morgan Stanley up over 3% in pre-market trade after pledging to double it's dividend. According to Bloomberg, the top six banks have agreed "return" a whopping $142 Billion to shareholders.
Looking at the day ahead, we should see the FHFA Shousing Price Index along with the S&P Case-Shiller Home Price index at 9:00AM, followed by consumer confidence at 10:00AM. I suspect the banks will need to liquidate some capital in order to dole out all this cash to shareholders, so keep an eye out for potentially aggressive quarter end rebalancing flows today and tomorrow.
Our live analysis begins at 9:30AM! Cheers, Michael.
Bitcoin is up around 4% on the day to 35,895, while Gold is down -0.70% to $1,768/oz. USOIL is up 0.70% to 73.28, and is on track to grind higher as inflation takes hold. The Vix slipped back to a 15 handle yesterday and is extending losses this morning - we're down around -0.57% and trading at 15.67.
After passing the Fed's stress tests yesterday which showed that banks are firmly above the Fed's caopital minimum's (how could they not be when they're giving the Fed back their capital via the RRP every night), Financials are seeing some notable strength this morning with Morgan Stanley up over 3% in pre-market trade after pledging to double it's dividend. According to Bloomberg, the top six banks have agreed "return" a whopping $142 Billion to shareholders.
Looking at the day ahead, we should see the FHFA Shousing Price Index along with the S&P Case-Shiller Home Price index at 9:00AM, followed by consumer confidence at 10:00AM. I suspect the banks will need to liquidate some capital in order to dole out all this cash to shareholders, so keep an eye out for potentially aggressive quarter end rebalancing flows today and tomorrow.
Our live analysis begins at 9:30AM! Cheers, Michael.
