Tag: S&P 500 (CME:SP500)

Hello traders everywhere. After opening the week lower on the heels of a week to forget the stocks market bounced back with fury on Tuesday and that move higher has continued today with the S&P 500, DOW and NASDAQ all showing gains as we enter afternoon trading. Reason for the move higher, renewed hopes that the Federal Reserve will lower interest rates soon.

Fed Chair Jerome Powell said Tuesday the central bank will keep an eye on current developments in the economy and would do what it must to "sustain the expansion." Powell did, however, note that the central bank could not determine when or how global trade issues would be settled.

Adding fuel to the market speculation that the Fed will cut rates is a lackluster jobs report. ADP reported data that showed that the private sector added fewest jobs in May since 2010, raising the odds that the Federal Reserve would cut interest rates to counter a potential slowdown. Jobs rose by 27,000 last month, according to the ADP National Employment Report, much below expectations of a 180,000 increase.

Key Levels To Watch This Week:

• S&P 500 (CME:SP500): 2,722.27
• Dow (INDEX:DJI): 25,957.63
• NASDAQ (NASDAQ:COMP): 7,332.92
• U.S. Dollar (ICE:DX): 97.26
• Gold (NYMEX:GC.M19): 1,276.70
• Crude Oil (NYMEX:CL.N19): 59.26
• Bitcoin (BITCOIN:BITSTAMPUSD): 6,178.00

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

Hello traders everywhere. As we close out the last trading day of May, the only thing that I can think of are tariffs, tariffs, and more tariff talk. Tariffs have certainly been the theme of the month, and without much of a surprise, President Trump closed out the month with the announcement of Mexican tariffs. That news has pushed the major indexes lower on the day with the DOW triggering a new red monthly Trade Triangle indicating that the index is now facing a long-term downtrend.

Washington will impose a 5% tariff from June 10, which would then rise steadily to 25% until illegal immigration across the southern border was stopped, Trump tweeted later on Thursday. Mexican President Andres Manuel Lopez Obrador said he would respond with "great prudence."

All three major indexes are down over -6% on the month, the worst losses of the year on a monthly level this year, with the NASDAQ leading the pack with a loss of -7.5%. The DOW is the first of the three to issue a new red monthly Trade Triangle, but the other two are not far behind. In fact, the DOW just set it's longest weekly losing streak in 8 years with 6 straight weeks of losses. The NASDAQ and S&P 500 will both post their 5th weekly loss out of the last 6 weeks. Continue reading "DOW Triggers New Red Monthly Trade Triangle" →

Hello traders everywhere. For the first time since early March, all three indexes have traded below their 200-Day MA. In fact, they are also trading below their 50-Day MA as well, is this a signal that the stock market is set up to head lower? As we head into afternoon trading the DOW, S&P 500 and NASDAQ are down over -1% on the day with the DOW recovering slightly after being down 400 pts in early trading.

The 10-year Treasury note yield fell to its lowest level since September 2017 and traded around 2.22%. A portion of the so-called yield curve further inverted as 3-month Treasury bills last yielded 2.353%, well above the 10-year rate. A yield curve inversion is seen by traders as a potential sign that a recession is on the horizon. Continue reading "All 3 Major Indexes Fall Below 200-Day MA" →

Hello traders everywhere. As we head into afternoon trading on the verge of the holiday weekend there isn't much to rejoice about in the stock market. The DOW is on track to post it's fifth straight weekly loss standing at roughly -.80% on the week. Not to be outdone the S&P 500 and NASDAQ will post their third straight week of losses losing -1.7% and -2.1% respectively.

The mounting losses are all due to the ongoing trade war/negotiations with China. Stocks are in the green after President Trump said that the ongoing trade war could be over quickly, he told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei.

Crude oil prices are down more than -7% this week as trade worries spilled over to other markets. The increased tension in the U.S.-China trade war, which has investors increasingly worried about the state of the global economy and, by extension, the outlook for global oil demand growth for the rest of the year. Oil prices were battered by the clouded outlook on the global economy and oil demand, on top of Wednesday's bearish EIA inventory report, which showed a crude oil inventory build of 4.7 million barrels in the week to May 17. Continue reading "DOW On Track For 5th Straight Losing Week" →

Hello traders everywhere. Semiconductor stocks fell after the ruling that Qualcomm used its dominant position to exact excessive licensing fees, a decision that could shake up the broader smartphone industry. Qualcomm (QCOM) fell -12%, while other chip stocks also dropped which in-turn has pulled the overall market as we head into afternoon trading.

Today's declines followed a Tuesday rebound for chip stocks after the White House granted temporary exemptions to an export blacklist against Huawei Technologies, potentially easing U.S.-China tensions as the two sides seek to get trade talks back on track. Some analysts expect trade-related swings to continue until investors get more clarity on escalating tariff threats by both sides.

On the trade war front, Treasury Secretary Steven Mnuchin told CNBC's Ylan Mui that a trip to Beijing to retake trade negotiations has not been scheduled yet. This lowered hope of a speedy resolution to the U.S.- China trade war.

President Donald Trump followed through with his threat to increase tariffs on $200 billion in Chinese goods from 10% to 25% earlier this month. China immediately responded by upping the tariffs on $60 billion of U.S. goods to as high as 25%.

Key Levels To Watch This Week:

Continue reading "Semiconductor Sector Drags Market Lower" →