To The Moon

U.S. stocks posted modest weekly gains, reversing the negative trend of the previous week. There was a wide divergence across the major U.S. indexes, with the $NASDAQ(.IXIC)$ gaining nearly 5%, the $S&P 500(.SPX)$ adding 2%, and the $DJIA(.DJI)$ rising less than 1%.

As of last Friday, the Indexes and Market weekly and YTD performances are as below: $S&P/ASX 200(XJO.AU)$ increased 2.1%, $Straits Times Index(STI.SI)$ rose 2.1%.

Technical Analysis Notes

$S&P 500(.SPX)$  day trend price still under the presure of DMA30 Level at 3916 point.

Day Chart

and monthly chart we are temporary to see the price is above MMA30 at 3869 point. From a historical view, whenever $S&P 500(.SPX)$ rebounded from 30-MMA level in 1 month, that means a positive trend for longrun. If the index contitue to decline below the level , that would probability see a downtrend.

Monthly Chart

So, the July indexes change are really matters to the market, below are some Macro, stocks, and Economics info worth to look at.

Macro Factorsto Focus

Q2 Earnings Outlook Lower: Late this week, major banks will begin to report Q2 results. As of Friday, analysts surveyed by FactSet were expecting companies in the $S&P 500(.SPX)$ to post earnings increases averaging 4.3% compared with the same period a year earlier. In the first quarter, the growth rate was 9.0%.

Yield Curve Inversion the 2nd Time: the yield of the 2-year U.S. Treasury bond rose above the yield of the 10-year bond on last Tuesday. Such an inversion is an indicator of concerns about short-term interest-rate increases as well as the possibility that a recession could loom ahead. The curve also briefly inverted in early April.

Jobs Continues Resilience: Despite high inflation, the U.S. labor market continued to post strong growth in June. The economy generated 372,00 new jobs—exceeding most economists’ forecasts—while the unemployment rate held steady at 3.6% for the fourth month in a row. Average hourly earnings rose 5.1%.

CPI Price to Check on Wednesday: A Consumer Price Index report scheduled to be released will show whether the U.S. economy got any relief last month from surging inflation. In May, inflation accelerated at an 8.6% annual rate—the highest since 1981 and above the previous month’s 8.3% figure.

Sectors Performances

Source: https://finviz.com/

Last week, we can see Coummunication Services and Consumer Cyclical Sectors see over 5% increases, and Energy, Basic Materials, Utilities see declines. 

Top 10 Stocks by Market-Cap' s Performances

$Apple(AAPL)$ ,$Microsoft(MSFT)$ ,$Alphabet(GOOG)$ ,$Alphabet(GOOGL)$ ,$Amazon.com(AMZN)$ ,$Tesla Motors(TSLA)$ ,$Berkshire Hathaway(BRK.B)$ ,$UnitedHealth(UNH)$ ,$Johnson & Johnson(JNJ)$ ,$Visa(V)$ .

The Top Gainners of S&P500 are as Below:

$Moderna, Inc.(MRNA)$ ,$Etsy(ETSY)$ ,$Paycom(PAYC)$ ,$Tesla Motors(TSLA)$ ,$PulteGroup(PHM)$ ,$Lennar(LEN)$ ,$Ceridian Hcm Holding(CDAY)$ ,$Enphase Energy(ENPH)$ ,$D.R. Horton(DHI)$ ,$Fortinet(FTNT)$

Other Markets:

Currency Convergence:  The year-to-date strengthening of the U.S. dollar relative to the euro has brought the value of the two currencies to a near-parity level for the first time in two decades. On Friday morning, the value of a single euro fell as low as $1.008. The last time the two currencies reached parity was in late 2002.

Bond Reversal: After rising for three weeks in a row, prices of U.S. government bonds fell, sending yields higher amid continuing concerns about persistent inflation and tightening monetary policy. The yield of the 10-year U.S. Treasury bond rose to 3.10% on Friday, up from 2.89% the previous week.

Crude Oil below $100: The price of $Light Crude Oil - main 2208(CLmain)$ fell below $100 per barrel last week for the first time since early May amid fears of a recession-driven drop in demand. The price recovered somewhat as the week progressed, and oil was trading just below $105 on Friday.

Gold Hits a 9-month Low: Gold declined four weeks, $Gold - main 2206(GCmain)$ declined 3.97% to $1740 per ounce. Market expects Inflation will reach a new high in the third quarter, and the expectation of interest rate hikes will further strengthen the price of precious metals to remain weak in the third quarter.

The Week Ahead: 11-15 July

Monday

• No major reports scheduled

Tuesday

• No major reports scheduled

Wednesday

• Consumer Price Index, U.S. Bureau of Labor Statistics
• Federal budget, U.S. Department of the Treasury

Thursday

• Producer Price Index, U.S. Bureau of Labor Statistics
• Weekly unemployment claims, U.S. Department of Labor

Friday

• Retail sales,  U.S. Census Bureau
• Business inventories, U.S. Census Bureau
• University of Michigan Index of Consumer Sentiment, preliminary result
• Industrial production and capacity utilization, U.S. Federal Reserve

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