Looking to the Futures

Futures markets enter Wednesday’s session with CPI on the docket. Equity-index futures were modestly higher, led by E-mini Nasdaq-100 Index Futures (/NQ) up 0.7% to 29934.00 (as of 6:30 AM ET). Wheat futures advance 3.53% to 652.50 ahead of August’s World Agricultural Supply and Demand Estimates and Crop Production (WASDE) report, while Light Sweet crude oil (/CL) reverses its overnight gains and is down 0.18% to 83.05. 
 

The Bureau of Labor Statistics will publish the July Consumer Price Index (CPI) at 8:30 AM ET. In June, headline CPI fell 0.4% from May and rose 3.5% over 12 months. CPI excluding food and energy was unchanged for the month and 2.6% higher year over year (U.S. Bureau of Labor Statistics). July’s CPI is expected to show a slight increase in monthly inflation, of 0.1% in the headline number and 0.2% for the core reading, according to economist polled by Dow Jones. The estimated 12-month rates of 3.4% and 2.5%, remain above the Fed’s 2% target.  A hot inflation report could raise alarm for investors who expect this reading to weigh heavily on September’s Federal Open Market Committee Meeting. According to CME’s FedWatch tool probabilities sit slightly in favor of neutral rates with a 48.1% probability of a 25-50 basis points increase and 51.9% probability of rates remaining 

Light Sweet Crude Oil futures (/CL) have traded in a wide range since June 30, moving between 67.04 and 93.50. Prices have since pulled back and are trading below the 9-day, 50-day, and 100-day simple moving averages (SMA), while remaining above the 200-day (SMA), which recently acted as support after crude briefly moved below it and reached a low of 67.04 on July 2. From a short-term trend perspective, the 9-day (SMA) crossed above the 50-day simple moving average on July 27, which may be viewed as a bullish technical development. However, the 20-day simple moving average and 21-day exponential moving average remain below the 50-day (SMA), suggesting the broader technical picture remains mixed. Volatility has eased from mid-month levels, falling from a high near 175% to roughly 69%. Momentum has also cooled, with the relative strength index declining from near 70 to 52.6. With the RSI only slightly above 50, momentum appears more neutral and may suggest crude is beginning to stabilize.

New futures products are available to trade with a futures-approved account on all thinkorswim platforms: 

• Ripple (/XRP)
• Micro Ripple (/MXP)
• 100 OZ Silver (/SIC)
• 1 OZ Gold (/1OZ)
• Solana (/SOL)
• Micro Solana (/MSL)

Visit the Schwab.com Futures Markets page to explore the wide variety of futures contracts available for trading through Charles Schwab Futures and Forex LLC.