Big Picture

Today there will be lots of talk about the FOMC, but the chances of anything truly unexpected coming this afternoon are very low.  This week, I have heard about a dozen people state that when we get an FOMC announcement the stock market goes up.  I was wondering if part of yesterday’s strength could be attributed to that mindset.  Remember when everyone is like minded, it may be time to go the other way. 

We are beginning to hear grumblings of who may be appointed the next Fed chair.  I like Neel Kashkari from the Minneapolis Fed as the possible replacement for Janet Yellen.

On balance earnings have been strong and I say this not based on the fundamentals, but how the stock market is reacting to earnings announcements.  On balance stocks have risen off earnings so far which can be taken as confidence in business conditions going forward. 

Overnight / Pre-Market

VSTOXX is down a bit as the EuroStoxx 50 is up 0.40%.  The FTSE 100 is also up about 0.40% and the Nikkei closed higher by about a half percent last night.  S&P 500 futures are slightly higher and VIX is slightly lower at 9.21.  Like this time yesterday, VIX is below the all-time closing low of 9.31.  I briefly discussed the current low state of VIX in a blog last evening –

http://www.cboe.com/blogs/options-hub/2017/07/25/we-know-vix-is-low---the-why-and-what-may-be-next

We continue to get earnings announcements in early trading the following stocks are on the move:

Higher:  KO +0.5%, BA +1.7%, DHI +0.7%, HES +0.8%, LL +0.5%

Lower: ANTM -0.5%, DISH -1.7%, F -1.6%

Looking Forward

As mentioned there’s a very large list of stocks reporting next week.  Here’s the names for Today and Thursday.

Wednesday - Thursday Earnings 0726

The full list of these stocks can be found at http://www.cboe.com/blogs/options-hub/2017/07/21/earnings-week-of-7-24-2017---7-28-2017

On Friday, before the market open, we get the first look at second quarter GDP.  The expectation is for 2.7% growth, but this is the first of three looks and may be a bit volatile.  With strong earnings reports I’m starting to wonder if that 2.7% number is a bit low.  We will know come Friday morning. 

CBOE Webcasts

Today at 3:30 Central – Dan Sheridan discusses The 15-Day Butterfly in SPX

August 2nd at 3:30 Central – Dan Passarelli discusses Tips and Tricks to Setting Up High Probability Option Trades

More information and registration at www.cboe.com/webcasts

Today in History

On this day in 1963 Syncom 2, the world’s first geosynchronous satellite was launched into space.  Astute readers will note the 2 after Syncom.  Syncom 1 was launched in February of 1963 made it into orbit, but didn’t say much (it fell silent) so number 2 is number 1 in this case.  There are now about 600 geosynchronous satellites above earth with the most common use being satellite TV.  There is a slight signal delay due to the distance from early that these satellites are in orbit so real-time functions like phone conversations and the Internet don’t work too well.  Finally, both Syncom 1 and 2 are still up there, but Syncom 2 is silent as well having been turned off decades ago.

Syncom_LEASAT