Sunday, August 2, 2020

3 August 2020 Foreign

FUTURESCOIN IS GOING GLOBAL


WTI Crude, Gold, HSI, Dow, S&P 500 and Nasdaq

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E-Mini Dow


Strong earnings from U.S. technology firms drove Wall Street higher while the dollar rose but still posted its worst month in a decade.

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Plan A : Attempt short if market does not breach above 26456. Targets are 26338 and 26250.
Plan B : Cut above 26501.
Plan C : Attempt long if market holds firm above 26338. Targets are 26456 and 26500.
Plan D : Cut below 26250.



E-Mini S&P 500


The Dow Jones Industrial Average rose 114.67 points, or 0.44%, to 26,428.32. The S&P 500 rose 0.77% to 3,271.12. The Nasdaq Composite finished the day up 1.49% to 10,745.27.

The market also wrapped up the month of July with decent gains. The 30-stock benchmark gained 2.38% this month, while S&P 500 rose 5.51% for its fourth consecutive positive month. The tech-heavy Nasdaq outperformed, climbing 6.82%.

Four of the biggest American tech companies all reported earnings or revenue that crushed Wall Street expectations. Apple posted a historically strong quarter, with revenue jumping 11% amid strong online sales during the pandemic. Amazon and Facebook both reported double-digit revenue growth. Alphabet posted better-than-expected earnings, but the Google parent-company reported its first revenue decline in history.

Shares of Apple jumped 10.47%, Facebook rose 8.17%, while Amazon popped 3.70%. Alphabet, however, dropped 3.28%.

The current $600 weekly federal unemployment benefit is expiring Friday, but lawmakers made little progress toward the next coronavirus relief deal. White House Chief of staff Mark Meadows said Friday Democratic leaders have rejected four offers regarding the bill. He added the White House will have additional discussions with Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelsoi, which will likely be extended into Saturday.

Monday marks the first trading day of August. On the data front, investors will monitor U.S. Manufacturing Purchase Manager Index (PMI) to gauge the pace of the recovery in the sector. Clorox and Virgin Galactic also report quarterly earnings on Monday.

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Plan A : Long if market retraced slightly but supported firm above 3245.25. Targets are 3268.25, 3289.50 and 3315.75.
Plan B : Short if market failed to support above 3245.25. Targets are 3218.25, 3198.50 and 3158.25.



E-Mini Nasdaq


Futures contracts tied to the major U.S. stock indexes held steady Sunday evening as investors turned their attention back to Washington and the economy after a busy week of corporate earnings.

The overnight moves Sunday evening come after a mostly positive week on Wall Street and blowout earnings reports from some of the nation’s largest consumer technology companies.

Apple, Amazon and Facebook all posted far-better-than-expected profit results Thursday evening that showed even one of the worst pandemics in the modern era has yet to have a material impact on their bottom lines. Apple, which blew past both overall and iPhone sales expectations, saw its shares rise more than 10% on Friday.

Google-parent Alphabet stock, however, lagged the rest of the mega-cap tech names Friday after posting a decline in revenues for the first time in the company’s history.
Still, the resilience in big tech helped round out both a mostly positive week and a decidedly strong month for U.S. stocks. 

The major equity averages ended July with solid gains and posted their fourth straight positive month. The S&P 500 gained 5.5% in July, while the Dow and the Nasdaq Composite rose 2.3% and 6.8%, respectively.

Traders and economists alike are also eager for the July jobs report, which the Labor Department is scheduled to release on Friday. 

The once-a-month jobs update will be of critical importance this month, especially since the number of people filing for unemployment benefits has been edging higher. According to Refinitiv, about 1.36 million new jobs are expected, well below the 4.8 million added in June, and the unemployment rate is expected to fall to 10.7% from 11.1%.

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Plan A : Long if market doesn't retrace much and supported firm above 10902.25. Targets are 10930.25, 10961.25 and 11001.25.
Plan B : Short if market failed to support above 10902.25. Targets are 10860.25, 10810.25 and 10765.25.



HSI

Hong Kong shares ended lower on Friday, as a resurgence in coronavirus infections and likely delay in local elections countered optimism over faster recovery in Chinese factories and strong U.S. tech earnings.

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Plan A : Attempt short if market does not breach above 24724. Targets are 24525 and 24375. Cut above 24810.

Plan B : Attempt long if market rebounds from 24370. Targets are 24525 and 24660. Cut below 24300.


WTI Crude

Oil prices rose on Friday and finished the month higher, benefiting from news that U.S. oil output cuts in May were the largest on record.

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Plan A : Attempt sell if oil price trades below 40.6
Plan B : Cut above 41.4
Plan C : Consider buying if oil price retrace but holds firm above 39.9
Plan D : Cut below 39.6



Gold

Gold rose on Friday to hit a new all-time high, as a sliding dollar and dire economic numbers from far and wide sparked a rush to safety in bullion. It was gold's best month since February 2016, and its fifth straight positive month.

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Plan A : Remain buy as long as gold price stays firm above 1967
Plan B : Exit below 1958
Plan C : Consider selling if gold price surges but fails to breach above 1997
Plan D : Cut above 2002

Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correctaysion, completion and amendment without notice.As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.




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