S&P 500; US Indexes Fundamental Forecast – June 23, 2016

U.S. stocks traded mostly higher on Wednesday, trying for a third straight day of gains, as the U.K. vote on whether to leave the European Union approached. The major indices came off their highs after U.S. crude stocks declined less than expected.

Early in the session, the Dow Jones Industrial Average traded up 29 points, or 0.15 percent, to 17,856. The S&P 500 gained 2 points, or 0.10 percent, to 2,091. The NASDAQ Composite rose 1 point, or 0.03 percent to 4,845.

In testimony before the House Financial Services Committee, Fed Chair Janet Yellen said she believes the recent weakness in job creation is “transitory” and does not reflect an otherwise growing economy.

On her second day of testimony, Yellen sounded more optimistic than she did over the past couple of weeks, a time during which the Fed backtracked on what had been an aggressive path forward for interest rates.

“We are seeing a pickup in growth. There’s been a sharp increase in consumer spending,” Yellen told members of Congress. “I’m very hopeful that we will see a pickup in growth. We will be watching for that as we assess the economy.”

Crude oil prices traded lower on Wednesday, failing to hold on to earlier gains after the release of U.S. crude stockpile data. Official data from the Energy Information Administration showed U.S. crude inventories fell by 900,000 barrels, less than expected.

In economic news Wednesday, existing home sales rose 1.8 percent in May. The FHFA House Price Index rose 0.2 percent on a seasonally adjusted basis in April from the previous month, while March’s figure was upwardly revised to a 0.8 percent increase.

We could be looking at a sideways-to-higher session today on below average volume and volatility. Although the odds seem to favor “Remain”, it’s still 50/50, and no one wants to be caught on the wrong side of the news.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Upcoming Economic Events that you should be monitoring:

Thursday, June 23, 2016

Government Bond Auctions

Jun 22 11:03 Sweden Holds bond auction

Jun 22 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund

Jun 22 17:20 Italy Details of Zero-coupon/BTPei auction