S&P 500 E-Mini Futures Market News and Commentary
The S&P 500 Index ($SPX) on Wednesday closed up +23.92 (+0.82%), the Dow Jones Industrials Index ($DOWI) closed up +240.29 (+0.93%), and the Nasdaq 100 Index ($IUXX) closed up +68.75 (+0.90%). U.S. stock indexes rallied on Wednesday as solid retailer sales and earnings sparked some optimism about the U.S. economy. Target surged more than +20% on Wednesday and posted a new record high to lead U.S. retailer stocks higher after it reported that Q2 comparable same-store-sales rose by +3.4%, better than consensus of +3%, and also raised its full-year adjusted EPS estimate to $5.90-$6.20 from a prior view of $5.75-$6.05. Also, Lowe's rose +10% Wednesday to a 3-month high after it reported Q2 comparable same-store-sales rose +2.3%, stronger than consensus of +1.7%. Wednesday's U.S. economic data was supportive for stocks after July existing home sales rose +2.5% to a 5-month high of 5.42 million, slightly stronger than expectations of +2.5% to 5.40 million. Stocks fell back from their best levels Wednesday afternoon after the minutes of the Jul 30-31 FOMC meeting said last month's Fed rate cut was a mid-cycle adjustment and not the start of an extended easing cycle. The minutes also showed that there was only mixed support for any aggressive rate-cut moves. The VIX S&P 500 Volatility Index ($VIX) on Wednesday fell to a 2-1/2 week low of 15.51% and finished the day down -1.70 to 15.80%. The VIX is well below last Thursday's 2-week high of 24.10% and the early-Aug 7-1/2 month high of 24.81%.