SPY Chart done on hourly timeframe. Major indexes continued to trade near their August lows last week despite stellar earnings from Nvidia. The company’s strong numbers weren’t enough to save the market from The Fed’s hawkish remarks at the Economic Symposium. Fed President Jerome Powell advocated for restrictive policy and maintained his viewpoint that inflation is still too high, so no sign of a definitive end for interest rate hikes yet. This week, which will wrap up August, we’ll get multiple reports about the current state of the U.S. labor market and inflation. The PCE index, which has steadily shown inflation is cooling down month over month, is expected on Thursday. This index is The Fed’s preferred inflation gauge so...
SPY Chart done on hourly timeframe. It’s that time of year again where the world’s top economists and bankers come together for their annual Jackson Hole Economic Symposium and address current economic challenges and trends. This year’s focus will of course be around interest rates, inflation, and the post-pandemic impacts on U.S. and World Economies. To battle inflation, banks across the world raised interest rates, the U.S. in specific hiked rates to a 20 year high yet it still battles the lingering effects of higher prices. Those effects are reflected perfectly in the consumer spending habits reflected in recent retailer earnings. Last week, big box retailers like Target, Walmart, Home Depot, and TJ Maxx reported their quarterly earnings and one...
SPY Chart done on hourly timeframe. Markets continued their pull back last week after mixed inflation data from the CPI and PPI reports. Prices of goods and services saw an uptick in July as CPI data showed a 3.2% year over year reading compared to June’s 3.0%. The jump may be small, but it moves inflation further away from The Fed’s target of 2%; which means more rate hikes could be due. The Federal Reserve will release their Minutes report this week, which will breakdown their last FOMC meeting and give investors a further insight on Fed members’ outlook on monetary policy. Although The Minutes report doesn’t really expose new information, it still makes markets nervous so be on the...
SPY Chart done on hourly candles. The bulk of notable earnings were announced last week as Amazon and Apple reported their numbers, but the most impactful event was Fitch’s downgrade on American’s long term debt rating. The downgrade from AAA to AA+ is the first of its kind since 2011, and it shook markets up, sending major indexes 19% lower. Last week’s reaction was indeed bearish, and the combination of Apple’s third quarter of revenue decline didn’t help confidence. On a brighter note, Amazon reported better than expected earnings on high targets, pushing the stock by 10% at one point last week. This week’s focus shifts to earnings from Disney, UPS, AliBaba, and other notable names. Now that technology stocks...
SPY Chart done on hourly timeframe. Markets are getting ready to close out a phenomenal July as all the S&P sectors are expected to end green for the month. The first week of August focuses on the U.S. labor market and more key earnings from tech giants like Apple and Amazon, some of the most anticipated reports for the quarter. Stocks have had mixed responses to their reports this season, but most companies are meeting projections and more importantly, raising guidance. Markets want to see strong forward guidance to meet the valuations many stocks, especially tech, have gained in 2023. Last week’s reports also included Q2 GDP, which showed the U.S. economy grew at a rate of 2.4% compared to...
