S&P 500 E-Mini Futures Market News and Commentary
The S&P 500 ($SPX) on Monday closed up +0.53 (+0.02%), the Dow Jones Industrials index ($DOWI) closed up +27.13 (+0.10%), and the Nasdaq 100 Index ($IUXX) closed up +23.69 (+0.30%). Key U.S. stock indexes on Monday posted new record highs. A rally in Chinese stocks on Monday was supportive for U.S. equities on stronger-than-expected Chinese economic data that is positive for global growth. Monday's data showed that China June industrial production rose +6.3% y/y, stronger than expectations of +5.2% y/y, and that China June retail sales rose +9.8% y/y, stronger than expectations of +8.5% y/y and the biggest increase in 16 months. U.S. stock indexes added to their gains Monday after the July Empire manufacturing index rose +12.9 to 4.2, stronger than expectations of +10.6 to 2.0. Also, a rally in technology stocks lifted the S&P 500 as the Nasdaq 100 posted a new all-time high. Gains in stocks were limited Monday on profit-taking ahead of the Q2 earnings season that begins in earnest this week. Another negative was global growth concerns after Monday's China Q2 GDP report fell to a 27-year low of +6.2 % y/y and after the Germany Economy Ministry said Monday that manufacturing in Germany, Europe's biggest economy, remains sluggish and that a weak level of orders and deteriorating business sentiment suggest manufacturing weakness will persist. The VIX volatility index ($VIX) on Monday rose by +0.29 to 12.68%. The VIX remains moderately above the 2-3/4 month low of 12.04% from July 5 and well above the 11-month low from mid-April of 11.03%.