U.S. Stocks May Lack Direction Following Recent Strength

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Wednesday, 19 July 2023 09:04:38 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a roughly flat open on Wednesday, with stocks likely to show a lack of direction following the extended rally seen in the previous session. Traders may be reluctant to continue buying stocks as they take time to digest the strong upward move seen over the past several sessions. With the surge seen over the course of Tuesday?s session, the Dow finally joined the Nasdaq and S&P 500 at the best levels in over a year. Some traders may look to cash in on the recent strength, although optimism the Federal Reserve is nearing the end of its interest rate-hiking cycle is likely to keep any selling pressure relatively subdued. The release of quarterly results from several big-name companies after the close of trading is also likely to keep traders on the sidelines. IBM Corp. (IBM), Netflix (NFLX) and Tesla (TSLA) are among the companies due to report their results as earning season continues to pick up steam. Stocks moved sharply higher over the course of the trading day on Tuesday, extending the strong upward move seen over the past several sessions. With the continued advance, the major averages all reached their best closing levels in over a year. The major averages finished the session just off their highs of the day. The Dow jumped 366.58 points or 1.1 percent to 34,951.93, the Nasdaq advanced 108.69 points or 0.8 percent to 14,353.64 and the S&P 500 climbed 32.19 points or 0.7 percent to 4,554.98. The rally on Wall Street partly reflected a positive reaction to earnings news from big-name companies like Bank of America (BAC) and Morgan Stanley (MS). Shares of Bank of America and Morgan Stanley soared by 4.4 percent and 6.5 percent, respectively, after both financial giants reported second quarter results that exceeded analyst estimates on both the top and bottom lines. Bank of New York Mellon (BK) and PNC Financial Services (PNC) also posted strong gains after reporting their quarterly results. "We are done with the majority of the big banks and the overall takeaway is that they did ok despite a weakening economy and all the turmoil that stemmed from the regional banking crisis last quarter," said Edward Moya, senior market analyst at OANDA. He added, "Wall Street knows this earnings season will have everyone calling this a challenging market environment, but optimism might remain that a resilient U.S. economy should translate into decent spending despite all the headwinds. " Traders also reacted positively to the release of separate reports showing a smaller than expected increase in retail sales and an unexpected decrease in industrial production. While the reports have led to some concerns about the strength of the economy, the data has added to recent optimism about the Federal Reserve nearing the end of its interest rate hiking cycle. The Commerce Department said retail sales edged up by 0.2 percent in June after climbing by an upwardly revised 0.5 percent in May. Economists had expected retail sales to advance by 0.5 percent compared to the 0.3 percent growth originally reported for the previous month. Excluding a modest increase in sales by motor vehicles and parts dealers, retail sales still rose by 0.2 percent in June after rising by an upwardly revised 0.3 percent in May. Economists had expected ex-auto sales to increase by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month. Meanwhile, the Fed said industrial production slid by 0.5 percent in June, matching the downwardly revised decrease in May. Economists had expected production to come in unchanged compared to the 0.2 percent dip originally reported for the previous month. Financial stocks saw substantial strength following the upbeat earnings news, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index spiking by 3.0 percent and 2.8 percent, respectively. Considerable strength also emerged among software stocks, as reflected by the 2.6 percent surge by the Dow Jones U.S. Software Index. With the jump, the index reached its best closing level in over a year. Airline stocks also showed a significant move to the upside over the course of the session, driving the NYSE Arca Airline Index up by 2.2 percent. Energy, gold and steel stocks also saw notable strength on the day, while some weakness was visible among interest rate-sensitive utilities and commercial real estate stocks. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( After reporting a substantial increase in new U.S. residential construction in the previous month, the Commerce Department released a report on Wednesday showing a sharp pullback in housing starts in the month of June. The Commerce Department said housing starts plunged by 8.0 percent to an annual rate of 1.434 million in June after spiking by 15.7 percent to a revised rate of 1.559 million in May. Economists had expected housing starts to plummet by 9.3 percent to a rate of 1.480 million from the 1.631 million originally reported for the previous month. The report said building permits also tumbled by 3.7 percent to an annual rate of 1.440 million in June after surging by 5.6 percent to a revised rate of 1.496 million in May. Building permits, an indicator of future housing demand, were expected to edge down by 0.1 percent to a rate of 1.490 million from the 1.491 million originally reported for the previous month. The Energy Information Administration is scheduled to release its report on oil inventories in the week ended July 14th at 10:30 am ET. Crude oil inventories are expected to decrease by 2.3 million barrels after surging by 5.9 million barrels in the previous week. At 1 pm ET, the Treasury Department is due to announce the results of this month?s auction of $12 billion worth of twenty-year bonds. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of Carvana (CVNA) are soaring in pre-market trading after the online auto retailer reported better than expected results and announced an agreement reducing its total debt outstanding by over $1.2 billion. Trucking company J.B. Hunt Transport Services (JBHT) is also seeing pre-market strength despite reporting second quarter results that missed analyst estimates. Meanwhile, shares of Interactive Brokers (IBKR) may come under pressure after the electronic broker reported weaker than expected second quarter earnings. Global market company Omnicom (OMC) is also likely to see initial weakness after reporting second quarter earnings that narrowly beat analyst estimates but weaker than expected revenues. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks are broadly higher on Wednesday, thanks to soft inflation data from the U.K. and rising expectations that the Federal Reserve's rate hiking cycle will end soon. U.K. stocks are outperforming following data from the Office for National Statistics showing the nation's annual headline inflation fell to a 15-month low of 7.9 percent in June from 8.7 percent in May. Meanwhile, core inflation came in at 6.9 percent. The drop in inflation has strengthened the case for a quarter point rate hike from the Bank of England rather than an aggressive half a percentage point increase at the August meeting. Meanwhile, final data from Eurostat said consumer price inflation in the Euro Area was confirmed at 5.5 percent in June 2023, the lowest level since January 2022. However, the core rate, which excludes volatile items such as food and energy, picked up to 5.5 percent, above a preliminary estimate of 5.4 percent. The U.K.?s FTSE 100 Index has surged by 1.5 percent and the French CAC 40 Index is up by 0.2 percent, although the German DAX Index has bucked the uptrend and dipped by 0.3 percent. Among the top gainers in the U.K. market, British Land Company is up 8.2 percent, Persimmon is up 7.5 percent and Hargreaves Lansdown is gaining 7.1 percent, while Land Securities, Barratt Developments, Taylor Wimpey, Segro and Just Eat Takeaway.com are up 5 to 6.5 percent. Admiral, TUI, Carnival, United Utilities, M&G, Severn Trent, Burberry, Auto Trader Group and Kingfisher are rising 3 to 4 percent. Meanwhile, Antofagasta is down by about 2.8 percent, and Anglo American Plc is lower by 1.2 percent. Glencore, Rio Tinto, BHP and Fresnillo are modestly lower. In the German market, Vonovia is rallying 7.5 percent. Sartorius, Zalando, Puma, Continental, Symrise, BASF and Siemens Healthineers are up 1 to 2.3 percent. Daimler Truck Holding is declining more than 2 percent and Covestro is down by about 1.9 percent. Brenntag, Mercedes-Benz, Siemens, Commerzbank and Infineon are down with moderate losses. In the French market, Kering is surging more than 5.5 percent. WorldLine is gaining 4 percent and Eurofins Scientific is up 2 percent. Michelin, Dassault Systemes, Bouygues, Orange, Unibail Rodamco, Renault, Vinci and Teleperformance are advancing 1 to 1.8 percent. Publicis Groupe, ArcelorMittal, Schneider Electric and Legrand are down 1 to 1.6 percent. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian markets finished trading on a positive note on Wednesday, tracking Wall Street's overnight gains. A positive surprise on U.K. inflation also supported sentiment. China's Shanghai Composite Index edged up less than a tenth of a percent to finish trading at 3,198.84. The day's trading ranged between 3,181.56 and 3,204.36. The Shenzhen Component Index dropped 40.31 points or 0.4 percent to close at 10,932.65. The Japanese benchmark Nikkei 225 Index surged 402.14 points or 1.2 percent to end trading at 32,896.03. The day's trading range was between 32,671.03 and 32,896.03. Nissan Motor Co. topped gains with a 7.7 percent rally. Kawasaki Kisen Kaisha surged 6.3 percent, followed by Mazda Motor Corp., which spiked 5.6 percent. Kawasaki Heavy Industries and Mitsubishi Heavy Industries both added more than 4 percent. Cyber Agent and Dentsu both declined more than 1 percent. The Hang Seng Index of the Hong Kong Stock Exchange erased 63.41 points or 0.3 percent from the previous close to finish trading at 18,952.31. The day's trading range was between a high of 19,004.42 and a low of 18,711.03. The Korean Stock Exchange's Kospi Index edged less than a tenth of a percent higher to close trading at 2,608.24. The day's trading range was between 2,598.52 and 2,622.54. Australia's S&P/ASX200 Index closed trading at a new 20-day high of 7,323.70 after gaining 39.90 points or 0.6 percent. The day's trading range was between 7,283.80 and 7,333.10. Pharma business Imugene rebounded 12.9 percent. Semiconductor business Brainchip Holdings surged 6.8 percent. Coal business Coronado Global Resources gained 5.5 percent. Syrah Resources, which had plunged 16 percent on Tuesday, recovered 4.7 percent. Ampol also added 4.4 percent. Gold mining business Northern Star Resources dropped 5.8 percent. Copper miner Sandfire Resources shed 3.4 percent. Mining company Iluka Resources, insurance business Medibank and medical instruments business Ansell all declined more than 2 percent. The NZX 50 of the New Zealand Stock Exchange added 11.73 points or 0.1 percent to close at 11,944.54. Trading ranged between 11,932.81 and 11,972.41. Vista Group International topped gains with a 3.3 percent rally. Pacific Edge, Precinct Properties New Zealand, Tourism Holdings, and Fisher & Paykel Healthcare all rose more than 2 percent. Freightways, Chorus, Port of Tauranga, Meridian Energy and Goodman Property Trust all declined more than 1 percent. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are climbing $0.39 to $76.14 a barrel after jumping $1.60 to $75.75 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,981.40, up $0.60 compared to the previous session?s close of $1,980.80. On Tuesday, gold surged $24.40. On the currency front, the U.S. dollar is trading at 139.56 yen compared to the 138.83 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1214 compared to yesterday?s $1.1229. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49