Market Trader Report V2#26
MyntBit's Market Trader Report brings potential setups for futures & stocks with a time horizon from days to weeks depending on price action. The following research is based on Fundamentals, Technical & Options Analysis.
What is included in this week's edition?
WEEKLY REVIEW: An overview of current market standing, fundamental matters with implications upon the market, and general sentiment regarding the major US indices.
LOOKING AHEAD: Key takeaways to consider as we look forward to the upcoming trading week.
FUTURES MARKETS: ES, NQ, RTY - A technical review of the major indices, futures, and commodities that represent the overall health of the market.
SPDR SECTORS & ETFs: SPY, QQQ, IWM - An in-depth review of the SPDR sectors with keynotes on market strength, opportunities, and relative rotation.
Market Trader by MyntBit
Weekly Review
In the financial markets this week, it was a positive week for large-cap stocks like the S&P 500 and Nasdaq Composite, ending their three-week losing streak. The S&P 500, driven by mega-cap names, rose by 0.8%, while the broader market, represented by the Invesco S&P 500 Equal-Weight ETF, experienced a slight loss. The Russell 2000 was down 0.3%, the S&P Midcap 400 Index remained flat, and the Dow Jones Industrial Average declined by 0.4%.
The week saw volatile trading with light trading volume, influenced by various significant news events, including housing sales reports, manufacturing and services data, NVIDIA's earnings report, retailer results, and a speech by Fed Chair Powell at the Jackson Hole Symposium.
Key highlights from the week include weaker-than-expected existing home sales due to limited supply and high mortgage rates, stronger-than-expected new home sales driven by moderately priced homes, and a slowdown in manufacturing and services sector activity.
NVIDIA reported strong earnings, but its stock struggled to maintain gains. Several retailers posted mixed results, with concerns about consumer credit trends and inventory shrinkage overshadowing some positive news.
Fed Chair Powell reaffirmed the Fed's 2.0% inflation target and hinted at future rate hikes if necessary. He did not mention the possibility of rate cuts, which was not surprising.
The best-performing sectors included information technology, consumer discretionary, and communication services, all with mega-cap stocks. In contrast, the energy sector declined due to concerns about China's weakening economy.
China's actions, such as cutting its loan prime rate and lowering stock trading duties, were in response to economic concerns, leading to a decline in the Shanghai Composite.
The Treasury market experienced fluctuations, with the 2-yr note yield rising and the 10-yr note yield remaining relatively stable. The U.S. Dollar Index strengthened during the week.
Weekly Performance Heatmap
Overall Stock Market Heatmap & Sector Performance
Looking Ahead to the Upcoming Week
The upcoming week will be focused on various economic data releases and reports. Key highlights include:
Labor Market: Investors will be closely watching August's jobs report, the ADP employment change data, and July's JOLTS survey.
Economic Indicators: July's personal spending and income data, PCE Deflator, and August's consumer confidence report will provide insights into consumer behavior.
GDP: The revised second-quarter GDP figures will be released.
PMI Data: Manufacturing PMIs from ISM, S&P Global, and MNI, along with Chicago's PMI, are on the schedule.
Housing Updates: Housing updates include July's pending home sales and June's house price data from FHFA and S&P CoreLogic.
Treasury Auction: There will be a $127 billion Treasury sale featuring two-, five-, and seven-year securities.
Asian Data: Asian markets will focus on Chinese August PMIs and Japan's data on capital spending, consumer confidence, manufacturing PMI, jobless rate, industrial production, retail sales, and housing starts for July.
Australian Data: Australian releases include July's Consumer Price Index (CPI), retail sales, building approvals, and private sector credit.
South Korea: South Korea will report on August's manufacturing PMI, trade balance, and July's industrial production.
European Data: Europe will see the release of August's preliminary Eurozone CPI, individual CPI measures for Germany and France, finalized manufacturing PMIs for several European countries, unemployment data for Eurozone and Germany, French GDP figures, Producer Price Index for France, and British housing market data including house prices and mortgage approvals.
Consumer Confidence: Eurozone and French consumer confidence reports for August and Germany's sentiment prospects for September will also be released.
Investors will closely monitor these economic indicators for insights into the state of various economies and potential market trends.
Earnings Calendar & Economical Events
