S&P 500; US Indexes Fundamental Daily Forecast – Earnings, Politics Key Market Drivers Today

The major U.S. equity indexes are trading slightly lower during the pre-market session. Traders are mostly reacting to lower markets in Asia and Europe. A weaker U.S. Dollar is also putting some pressure on stocks.

The primary focus for investors today will be earnings. However, investors will also get the opportunity to react to the latest U.S. Flash Manufacturing PMI and Flash Services PMI reports as well as Existing Home Sales. On Wednesday, the U.S. Federal Reserve will release its latest interest rate decision and monetary policy statement. It’s widely expected to leave its benchmark interest rate unchanged, but investors will be more interesting in any hints it offers about the direction of interest rates.

The S&P 500 Index and the NASDAQ Composite Index closed higher last week, but the Dow Jones Industrial Average finished lower. All three major indexes continue to remain around their all-time highs.

The indexes are primarily being supported by lower Treasury yields and stronger-than-expected earnings. Some investors claim that political uncertainty is actually limiting the rally.

The news over the week-end seemed to be all about the Trump administration. Political woes continue to dampen hopes for quick passage of President Donald Trump’s stimulus and tax reform agendas especially after Republican senators postponed a vote to repeal Obamacare and introduce their own health care plan.

The White House said on Sunday that Trump was open to signing legislation toughening sanctions on Russia after Senate and House leaders reached agreement on a bill late last week.

Also this week, perhaps as early as Tuesday, U.S. republican Senators may hold a procedural vote to take up legislation to repeal or replace Obamacare, but it remains unclear which version of the bill senators would vote on.

Reports late Sunday indicate that President Donald Trump is set to deliver a statement on health care at 1915 GMT on Monday, according to the White House.

Don’t be surprised by a two-sided trade on Monday on light volume. There are no major reports and investors are waiting for news so they are likely to hold their money tight to their vests. Traders should watch earnings reports early in the session as well as crude oil prices because of the OPEC/Non-OPEC oil ministers meeting in St. Petersburg, Russia.

Also pay attention to the U.S. Dollar as it nears the critical 92.00 area.