Stocks Up on Solid Corporate Earnings

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month 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 of Jul 18, ehe S&P 500 Index(SPX) and Nasdaq Composite Index (COMP) reached new records during the week, supported by solid corporate earnings reports and generally favorable economic data. Both indexes are now up about 7% to 8% this year thus far, while the Dow Jones Industrial Average(DJI) ended in negative territory for the week but is up 4.23% year-to-date.

The Q2 corporate earnings season began in earnest last week, and thus far companies have beaten expectations. About 12% of companies have reported earnings, and of these, 86% have exceeded forecasts, well above the 10-year average of 75%. JP Morgan Chase(JPM), the largest U.S. bank, and Citigroup(C) both reported better-than-expected results. Well-known consumer-facing names such as PepsiCo, United Airlines, and Netflix also released reports that beat forecasts. Refer to below major indexes weekly performance tables.

Key highlights for the week and next:

1.    U.S. consumer price index (CPI) inflation for June came out in line with expectations last week, with headline CPI up 2.7% year-over-year, a tick higher than forecasts of 2.6% and above last month's 2.4% reading. 

2.    Producer price index (PPI) inflation, where many investors expected to see tariff increases show up more acutely, came in lower than expectations. Headline PPI inflation was 2.3%, below forecasts of 2.5% and last month's revised 2.7% reading. 

3.    Retail sales surpassed forecasts, indicating the consumer remains healthy: U.S. retail sales for June were another sign that the consumer continues to spend. Overall retail sales climbed by 0.6% for the month, well above forecasts of 0.1% and last month's -0.9% reading. 

4.    Chipmaker NVIDIA announced that it had received permission from the Trump administration to sell its H2O artificial intelligence chips to China. NVIDIA, which hit the USD 4 trillion market capitalization level for the first time in early July, rallied on the announcement. 

5.    Tariffs continue to remain an overhang on markets, with investors in wait-and-see mode ahead of the new August 1 tariff deadline and potential sector tariffs. However, even as tariff rates have moved substantially higher since the beginning of the year, inflation has remained contained and economic growth has held up. 

SPX sectors in play

Eight out of the 11 SPX sectors recorded weekly gains, Tech(XLK) and Financials(XLF) were among top gainers. Energy(XLE) and Health Care(XLV) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Stock markets continued to gradually move higher, with the SPX and technology-heavy Nasdaq making fresh all-time highs. Both indexes are now up about 7% to 8% this year thus far.  The SPX is now up over 26% since the April 8 lows. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets recorded a weekly gain. The Shanghai Composite Index(SSE) added 0.69% and the blue-chip CSI 300 gained 1.09%. In Hong Kong, the benchmark Hang Seng Index advanced 2.84%. (refer to the above weekly performance table).

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

1.    China’s GDP increased 5.2% in the Q2, compared with the Q1’s 5.4% growth pace. Analysts said the Q2’s higher-than-expected growth would likely ease pressure on Beijing to roll out further stimulus measures anytime soon. 

2.    Analysts cautioned that growth would likely slow in the year’s second half amid worsening deflation pressures, weak retail sales growth, and the potential for a flareup in U.S. trade tensions once a temporary deal expires in mid-August. Earlier this month, China reported that its producer price index fell the most in nearly two years in June, the 33rd straight month of factory deflation. 

3.    Persistent weakness in China’s housing market has also renewed calls for more stimulus from the central government. New home prices in 70 cities nationwide fell 0.27% in June month on month, while values for existing homes fell 0.61%, the statistics bureau reported Tuesday. Residential sales dropped 12.6% in June from a year earlier, the sharpest decline this year, according to Bloomberg. The data showed that China’s property slump—now in its fifth year—continues to weigh on consumer demand. 

Refer to below .HSI stocks performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

 

Singapore

The Straits Times Index (STI) accelerated its upswing into 4^th week, gained further 2.49% to close at 4189.50 point this week. The bulls are strong and some analysts lift STI’s year end target to 4500 level.

Refer to below table for STI index stocks weekly performance.

STI index stocks Year-To-Date return.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.

Tariffs 2.0 Kick in, Stocks Muted Response

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month 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 of Jul 11, U.S. stocks finished the week mostly lower, with the tech-heavy Nasdaq Composite Index(COMP) holding up best. Tariff news dominated the headlines, but market reaction was muted compared with previous tariff announcements. There was little difference in performance between large-caps and small-caps, while growth stocks held up modestly better than value. In single-stock news, NVIDIA hit the $4 trillion market capitalization threshold for the first time, helping put the “mega” in the so-called Magnificent Seven group of mega-cap stocks. Refer to below major indexes weekly performance tables.

Key highlights for the week and next:

1.    New tariffs were announced this week on more than 20 countries, with the 90-day pause extended to August 1. Tariff rates vary widely — from 20%-50% — to be applied on August 1 unless countries reach trade deals sooner. 

2.    FOMC’s mid-June  meeting minutes show disagreement about policy direction. While “most” policymakers said that they anticipate cutting rates this year, two stated that they would be open to rate reductions as soon as the late-July FOMC meeting. Stocks showed little reaction to the FOMC minutes. 

3.    NVIDIA hit the $4 trillion market capitalization threshold for the first time in the week, helping put the “mega” in the so-called Magnificent Seven group of mega-cap stocks. NVDA closed at $164.92 by the week.

SPX sectors in play

Five out of the 11 SPX sectors recorded weekly gains, Energy(XLE) and Industrails(XLI) were among top gainers, while Financials (XLF) and Communication Services(XLC) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Stocks held near record highs set this week, aided by strong performance in the energy and industrial sectors that helped offset the risk-off sentiment driven by tariff headlines. Nasdaq(COMP) and SPX have been holding up quite well near record highs, while DJI retreated 1.02% near its all-time high. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets rose as data showing persistent deflation spurred hopes for more stimulus. The Shanghai Composite Index(SSE) added 1.09% and the blue-chip CSI 300 gained 0.82%. In Hong Kong, the benchmark Hang Seng Index edged up 0.93%. (refer to the above weekly performance table).

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

1.    The producer price index fell 3.6% in June from a year earlier, the country’s statistics bureau reported Wednesday. June’s decline was worse than economists’ forecasts and marked the 33rd month of factory deflation, as well as the biggest drop for producer prices in nearly two years, according to Bloomberg. The consumer price index unexpectedly rose 0.1%, snapping a four-month streak of declines. However, analysts said the increase was likely driven by recent stimulus measures rather than a sustained improvement in consumer confidence. 

2.    The latest inflation report raised the possibility that China’s leaders may roll out more stimulus to lift the economy out of a persistent cycle of falling prices, corporate profits, and wages. Earlier in July, officials at a high-level economic meeting chaired by China’s President Xi Jinping pledged to crack down on “disorderly” low-price competition and phase out outdated industrial capacity, Bloomberg reported, citing state-run media. The report underscored the urgency that China’s leaders have assigned to tackling deflation resulting from weak domestic demand.

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) gained further 1.85% to close at 4087.81 point this week. The index has crossed its 4100 level intra-week for the first time, and on the up streak for 3^rd week consecutively which is remarkable. The uptrend is steady technically, with further upward move expected.

Refer to below table for STI index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.

U.S. Stocks Hit Record Highs for Second Straight Week

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month 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 of Jul 4, U.S. stocks finished the holiday-shortened week higher. The S&P 500 Index(SPX) and Nasdaq Composite(COMP) both closed at all-time highs for the second week in a row, gainer 1.7% and 1.6% respectively, while the Dow Jones Industrial Average(DJI) advanced 2.30%. U.S. markets closed early Thursday and were closed Friday for a public holiday. Refer to below major indexes weekly performance tables.

Monthly Index performance for June as follows:

Key highlights for the week and next:

1.    Much of the focus this week centered around Trump’s “ Big Beautiful Bill”, which he signed into law in July fourth Independent Day ceremony. 

2.    Trade related headlines in the week. A trade deal reached with Vietnam and making comments around negotiations with other countries ahead of Jul 9 tariff deadline, when the 90-day pause on reciprocal tariffs is expected to end. 

3.    U.S. economy data shows job growth remains resilient. Non-farm payroll data shows there were 147k jobs added in June, beat expectation. Meanwhile ISM manufacturing PMI was 49% in June, up from May’s reading of 48.5%. Services PMI was 50.8% in June, returned to growth after contracting for the first time in 11 months in May. 

SPX sectors in play

All the 11 SPX sectors recorded weekly gains, Technology(XLK) and Materials (XLB) led gains, while Communication Services(XLC) lagged after previous week’s strong gain, it registered record highs for 2^nd straight week. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

We have wrapped up 1^st half of the year and entering 2H in a very bullish note. Stock markets finished the 1H at all-time highs, while the SPX and COMP are both higher by more than 6% YTD. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets rose for the week ended Thursday. The Shanghai Composite Index(SSE) added 1.40% and the blue-chip CSI 300 gained 1.54%. In Hong Kong, the benchmark Hang Seng Index lost 1.52%. (refer to the above weekly performance table).

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

1.    The official manufacturing purchasing managers’ index improved in June to 49.7 from May’s 49.5 reading, China’s statistics bureau reported Monday. The latest manufacturing PMI reading captured the first full month after the U.S. and China agreed in May on a 90-day pause in their tariff war, which led to a temporary rebound in trade. Though the gauge stayed below the 50.0 reading that separates growth from contraction, it beat economists’ forecasts and raised doubts about whether Beijing would step up stimulus measures in the near term. 

2.    The Caixin China General Services PMI fell to 50.6 in June, a nine-month low, from May’s 51.1 reading, missing forecasts. Despite remaining in expansionary territory, June’s growth pace was the softest since last September as the pace of new business growth slowed, Caixin said in a statement. A gauge of employment fell for the third time in the past four months as service providers remained cautious about hiring.

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) gained another 1.2% to close at 4013.62 point this week. Registered historical high after two-week straight up. Maybank Securities raised 2025E STI target to 4185 level on its 25 June update.

Refer to below table for STI index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.

U.S. Stocks are Back at All-Time Highs

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month 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 of Jun 27, U.S. stocks rallied in response to several positive developments during the week, including de-escalating tensions in the Middle East, dovish comments from several Federal Reserve officials, reports that the U.S. and China signed a new trade deal, and comments from several U.S. government officials indicating that more trade deals were close to the finish line. The S&P 500 Index(SPX) and Nasdaq Composite(COMP), up 3.44% and 4.25%, respectively, both closed at record highs and up about 5% YTD, while the Dow Jones Industrial Average(DJI) rose over 3.8%. Refer to below major indexes weekly performance tables.

Key highlights for the week and next:

1.    Inflation uptick in May modestly, Personal Consumption Expenditures(PCE) price index- the Fed’s preferred measure of inflation, core PCE rose 0.2% MoM and 2.7% YoY in May, both slightly ahead of consensus estimates and up from April’s radings of 0.1% and 2.6% respectively. 

2.    Fed still poised to cut rates by year-end. Oil and energy prices have moved sharply lower in recent days, which helps support lower headline inflation. While futures markets were still pricing in a high likelihood that the Fed will keep rates steady in July, the probability of a rate cut rose from 14.5% at the end of the prior week to around 19% by Friday afternoon, according to the CME FedWatch Tool. 

3.    Geopolitical tensions easing, oil prices falling. Over the weekend of June 21-22, conflict in the Middle East escalated, as the U.S. launched airstrikes against three of Iran's nuclear-enrichment facilities. This was a surprise strike and came in the midst of Israel and Iran's ongoing conflict that began on June 13. However, in recent days there has been notable de-escalation in the conflict. U.S. WTI crude oil, which had risen over 20% in June to $75 per barrel, fell about 13% last week down to around $65 per barrel. 

4.    Potential setbacks. There are several potential catalysts for markets’ retreat. These include ongoing tax and trade negotiations, the passing of a U.S. tax bill, and the potential for some cooling in economic growth sparked by higher tariff rates. We saw just on Friday that the stock market rally faded as Trump announced it was ending trade discussions with Canada over a digital services tax. 

SPX sectors in play

Eight out of 11 SPX sectors recorded weekly gains, Technology sectors including Communication Services(XLC), Tech(XLK) and Consumer Discretionary(XLY) continue to lead the way higher, they are the top three most outperforming sectors for the week.

Energy(XLE) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Stock markets made fresh all-time highs last week, with both the S&P 500(SPX) and technology-heavy Nasdaq(COMP) up about 5% year-to-date. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets rose following news that the U.S. and China finalized a trade understanding reached in Geneva last month. The Shanghai Composite Index(SSE) added 1.91% and the blue-chip CSI 300 gained 1.95%. In Hong Kong, the benchmark Hang Seng Index rallied 3.2%. (refer to the above weekly performance table).

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

1.    News of the framework announced last Thursday by U.S. Commerce Secretary Howard Lutnick temporarily stabilized trade relations between both countries. On Friday, Beijing confirmed some aspects of an accord, which reportedly codifies the terms laid out in trade talks this year, including a pledge from China to deliver rare earths. However, no detailed readout followed the announcement, and the deal did not address issues such as fentanyl trafficking. 

2.    On the economic front, the People’s Bank of China (PBOC) noted that the economy is showing positive signs and rising confidence, but insufficient domestic demand and deflation continued to weigh on activity. The PBOC said in its post-quarterly policy committee meeting statement that it would adopt a flexible approach to policymaking, taking domestic and international conditions into account. It also said monetary policy would remain “moderately loose” with the aim of maintaining stable economic growth and prices within a reasonable range.

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) rallied 2.13% to close at 3966.20 point this week. The index rebounded back to all-time high since 1^st April, and less than 40pts away to its record high of 4005.18. Maybank Securities raised 2025E STI target to 4185 level on its 25 June update.

The “good old” local technology stocks such as AEM, Frencken and UMS appear to have bottom rebounded and outperformed in the week, rising 23.6%, 9.6% and 12.4% respectively. Expected S-REITs will also be outperforming in 2H 2025 in anticipating of lower interest rates. Refer to below table for STI index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.