Stocks Continue Climbing Higher as Gains Appear to Broaden

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly performance 

4.   China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week ended Jun 21, the three U.S major indexes recorded modest gains over the shortened trading week, helping push the S&P 500 Index(SPX) to fresh all-time highs. The week also saw modest signs of a broadening and rotation in the market, with value stocks outperforming growth shares and most of the major benchmarks outperforming the technology-heavy Nasdaq Composite(COMP). Refer to below major indexes weekly performance table.

Key highlights for the week and next:

1.    Nvidia(NVDA) unseated Microsoft(MSFT) as the world's most valuable company intra-week before its profit-taking Thursday and Friday, with a market capitalization 30% larger than the entire small-cap universe. Top three of most valuable companies by market cap by Friday: Microsoft 3.34T, Apple $3.18T, Nvidia $3.11T. 

2.    Fed interest rate cut. Current market pricing implies a 60% chance of a September cut followed by one more in December. 

3.    As reported on Tuesday, retail sales had increased only 0.1% in May, according to advance estimates, while falling a downwardly revised 0.2% in April. Growth was positive but slower than expected, suggesting that consumers are exercising more caution amid tighter budgets. 

4.    The Federal Reserve announced that industrial production had expanded 0.9% in May, well above consensus expectations and the fastest pace in nearly a year. Factories were also operating at 78.7% of capacity, a tick above expectations and the highest level since last November. 

5.    Important economic data release coming week: Personal Consumption Expenditures (PCE) price index report, the Fed's preferred inflation gauge.

 

SPX sectors in play

Only three out of the 11 sectors of SPX closed with gains. Technology( XLK) outperformed while Energy(XLE) and Financials(XLF) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Both SPX and COMP hit new record highs again this week. Both indexes recorded 3^rd consecutive weekly gains. Nvidia broke an eight-week winning streak with a 4% weekly slide. Click below three indexes for their weekly charts.  

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stocks fell as mixed economic data dampened investor sentiment. The Shanghai Composite Index(SSE) declined 1.14%, while the blue chip CSI 300 gave up 1.3%. In Hong Kong, the benchmark Hang Seng Index gained 0.48%. (Refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    China’s Industrial production rose a weaker-than-expected 5.6% in May from a year earlier, slowing from April's 6.7%. Fixed asset investment grew 4% in the calendar year to May compared with a year ago but eased from the January to April period as real estate investment declines deepened. Meanwhile, retail sales increased an above-consensus 3.7% in May from a year earlier and outpaced April’s 2.3% gain. The nationwide urban unemployment rate remained steady at 5%. 

2.    The People’s Bank of China injected RMB 182 billion into the banking system via its medium-term lending facility and left the lending rate unchanged at 2.5%, as expected. 

3.    New home prices extend declines. China’s new home prices fell 0.7% in May, accelerating from a 0.6% drop in April, marking the steepest month-on-month contraction in nearly a decade, according to the statistics bureau.

Hang Seng Index component stocks weekly return:

Click below title to view weekly charts.

SSE weekly chart

.HSI weekly chart

Singapore

STI index edged higher, ended two weeks down streak with 0.26% gain. It’s hovering its downtrend line, appears to be in consolidation (refer to STI weekly chart below). Immediate major resistance level is around 3400, immediate technical support 3250 level.

STI Index component stocks weekly return:

STI weekly chart

Source: Some contents and data excerpted from various public market reports.