1. Week 30 major indexes performance;
2. Week 30 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S and Global
U.S stocks declined modestly for the week. SPX and DJI closed 1st week down after three-consecutive weeks up. The SPX index turned intra-week positive for 2020 but pulling back on concerns over escalating China-US tensions. There are many factors contributing to the market forces, it's believed the road to recovery will likely slow and bumpy going forward. Here are some positive and negative factors. Refer to below major indexes weekly performance table.
Positives:
1. The EU leaders agreed on a landmark stimulus package to help member states mitigate the economic downturn. U.S also is preparing a new round of stimulus to continue to support current household relief measures which will expire at the end of July;
2. Housing market data is showing itself as a bright spot in the economy, as a result of mortgage rates have fallen further to 3% this week from 3.7% in Jan. Housing, as one of the most interest-rate-sensitive sectors of the economy, is an important watchpoint for stocks.
3. Scientists and medical professionals are racing for a vaccine and the hopes to have a vaccine eventually getting greater as time passed.
Negatives:
1. U.S initial jobless claims increased for the first time since March, raising worries the recovery is beginning to stall;
2. China-US tensions escalating to new high levels which could put phase one deal implementation in question;
3. The ballooning debt and credit levels due to the unprecedented both fiscal and monetary stimulus package around global countries. Dented corporate earning and permanent job losses as COVID-19 pandemic's impact on the economy.
The most common question likely is stocks have recovered since March sell-off. Should I wait for equities to drop again before I invest? That being said, it's difficult to timing the market by waiting for the "perfect" time to invest. Given the long term outlook for the economy to gradually improve and stocks to continue grind higher, instead of staying on the sidelines one should consider a systematic approach on investing, such as dollar-cost averaging. (Click HERE for more information on dollar-costing averaging).
Among 11 SPX major sectors. Energy(XLE) and Financials(XLF) outperformed this week. while Technolgy(XLK) and Communications services(XLC) fared worst, dragged down by declines in Apple(AAPL) and several chipmakers such as Intl Corp(INTC). While INTC dropped more than 16% on Friday, its rivals Advanced Micro Devices(AMD) and Taiwan Semiconductor Manufacturing( TSM) jumped 16.5% and 9.7% respectively. Refer to below SPX major sector indexes weekly performance.
Gold and Silver Gold has been continuously bullish and reached $1900.3 per ounce- approaching to the historical high of $1923.7 in Sep 2011. Gold ETF "GLD". Silver ( ETF: SLV)also rebounded to its high in 2014 but still far away below its historical high of 48.35 in 2011, still plenty of room to upside. Refer to below Gold futures and SLV monthly charts.
Earnings to focus for the coming week.
Jul 28: MMM
Jul 29:AMD;
Jul 30: FB
Jul 31: Alphabet(GOOGL), AAPL, AMZN
Full earning calendars for next week click HERE
China/HK
China and HK stocks declined this week, weighted by a Friday sell-off on news White House ordered to close China's consulate in Houston, Texas. Technically, Both SSE and HSI index down for 2nd week in a row. Technically, SSE immediate support level to watch 3150 and HSI 24500.
Singapore
STI immediate support at 2572 then 2500 major support. Refer to major indexes weekly chart below.
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