Monday's Market Minute: Copper Prices & Crude Oil

Let’s take a minute to get ahead of what could move markets. Before we do, it’s worth noting that the U.S. indices, which continue to trend higher, remain at or near all-time highs and continue to reward those who have been positioned with the trend. Those who have been fading it have been forced to be precise in their timing, to say the least. The move-up comes as investors shrug off inflation concerns tied to crude oil prices steadily on the rise, COVID concerns in Asia, and rates on the rise as they remain focused on earnings and better-than-expected economic data domestically. This week, keep an eye on crude oil and rates. While they still have yet to create significant headwinds for the indices, at this rate of acceleration at some point they will. I think copper will be key to watch in the coming weeks after losing 5% the past two sessions; it’s trying to recover to begin the week. Copper recently tested the all-time highs from earlier this year and has struggled to take out the May highs up around $4.88. Copper often is looked at as an indicator of economic conditions to come, not only here in the U.S. but globally, so to see prices on the decline is a bit concerning. In terms of economic data due out this week, we have some housing data, GDP, Durable Goods, Personal Income and Spending, and the Consumer Sentiment numbers that will end the week on Friday. I’m going to be particularly dialed in on the weekly jobless claims which have been coming in strong the last few weeks, suggesting a solid monthly report next month. We also have a handful of companies reporting quarterly results to keep an eye on. The focus is on big tech with Facebook today on the closing bell, and Apple AAPL, Microsoft MSFT, and Amazon AMZN all reporting as well. Lastly don’t forget about bitcoin, which last week traded to new all-time highs. I think this should be viewed as a sign that risk-on sentiment remains healthy.

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