Party On! Dow Set For 100 Point Gain as Markets Look on the Bright Side
S&P 500 futures have rise 0.5%, while Dow Jones Industrial Average futures have gained 120 points, or 0.6%. Nasdaq Composite futures have climbed 0.7%.
Rhino Trading's Michael Block explains why the market is trading higher today:
Why are the jitters dissipating? Irma is down to a Category 1 storm and while we don't want to downplay the destruction and suffering the storm has caused, from a markets standpoint the estimated damage is a fraction of what was feared. Fears that North Korea was going to fire off an ICBM towards Guam or even California to celebrate its founding are gone as the day came and went and instead of firing a missile, Kim Jong Un threw himself a banquet.
NatWest Markets' Blake Gwinn and team still worry about North Korea:
It looks like it will be a pretty slow start to the US week today, with no major domestic data releases and the Fed in the blackout period ahead of next week's FOMC meeting. One development that we might be keeping an eye on however is this afternoon's UN security council vote on a package of North Korean sanctions. The sanctions being voted on today represent a step back from those originally proposed by the US, particularly with regards to oil imports (US originally called for an embargo) and some personal restrictions on Kim Jong Un himself. These were pulled back due to concerns about Russia and China's support of the original package (both hold veto power). While it's difficult to predict how or if Trump or North Korea will respond to the outcome of this vote, in a session otherwise devoid of known catalysts, it's possible that we see some support for Treasuries on the back of either outcome. On the one hand, we could see a failure of these measures leading to a renewal of incendiary rhetoric by President Trump. However, if they are passed, we could see North Korea responding with a continuation of provocative weapons tests.
That would be one way to end the party.
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