Weekly Review (August 02-06)
STOCKS
Global stocks were mixed-to-lower during the week. Wall Street stocks rebounded on Wednesday, as investors shrugged off coronavirus-related worries to focus on upbeat corporate earnings. Nine out of ten companies on the S&P 500 index have posted earnings that exceeded expectations. The next day, US equities rose as investors continued to cheer upbeat quarterly earnings. Furthermore, market players were encouraged by a decline in U.S. unemployment claims ahead of Friday’s monthly employment report, especially amid conflicting market indicators. As such, the S&P 500 rose 0.60%, while the Dow Jones and the Nasdaq climbed 0.78% each. In Asia, however, trading was mixed-to-lower amid the ongoing spread of the Delta variant of the coronavirus across the region.
06.08.2021
1159
Weekly Review (July 26-30)
STOCKS
Global stocks were mostly under pressure this week, as a regulatory crackdown in China weighed on market sentiment, with selling was most pronounced in technology and communication equities. Of note, markets failed to derive significant support from the Fed’s dovish tone. The Federal Reserve kept its accommodative monetary policies and signaled that economic recovery was on track. At the same time, the central bank noted that the path of recovery will depend on the virus. However, Wall Street stocks bounced to finish higher on Thursday due to solid economic data and upbeat corporate results. The U.S. economy grew at a solid 6.5% annual rate in the second quarter to return to pre-pandemic levels while claims for unemployment benefits dropped by 24,000 to 400,000 last week.
30.07.2021
1213
Weekly Review (July 19-23)
STOCKS
Rising COVID-19 infections globally pushed global stocks lower on Monday, with outbreaks growing in a number of counrties. Of note, France, the Netherlands, Greece, and Spain announced new restrictions in a bid to curb a rise in infections in the region. Massive risk aversion was triggered by rising concerns over a fast-spreading delta Covid variant in some parts of the world, forcing investors to pare back their expectations for the economy. However, the markets managed to recover later on the week as the panic receded. Wall Street stocks edged higher in a quiet session on Thursday, extending gains after dropping sharply at the start of the week. In part, the recovery was due to upbeat results from the latest corporate earnings season. As such, the S&P 500 rose 0.2%, the Dow Jones Industrial Average added 0.07%, and the Nasdaq Composite gained 0.36%.
23.07.2021
1121
Weekly Review (July 12-16)
STOCKS
Global stocks were mostly lower this week, as a jump in U.S. inflation fueled expectations of a quicker end to Federal Reserve stimulus. The U.S. consumer price index rose 0.9% in June, the largest gain since June 2008. Unemployment claims fell by 26,000 last week to 360,000, the lowest level since the pandemic struck last year. Elsewhere, democrats on the U.S. Senate Budget Committee reached an agreement on a $3.5-trillion infrastructure investment plan. On Thursday, the S&P 500 and the tech-heavy Nasdaq fell 0.33% and 0.70% respectively while the Dow Jones Industrial Average bucked the trend to finish 0.15% higher. In Asia, Tokyo’s Nikkei 225 index shed nearly 1% after the Bank of Japan kept its policy settings intact but downgraded its growth forecast for the current fiscal year, citing high uncertainty related to the pandemic.
16.07.2021
1202
Weekly Review (July 5-9)
STOCKS
Earlier in the week, Wall Street notched fresh all-time highs after minutes of the Federal Reserve’s latest meeting gave an upbeat outlook for the U.S. economic recovery. Some members saw inflation as rising quicker than projected, however. The bank also stressed that the economy has not made enough progress and that more evidence is needed before acting. However, as global sentiment turned sour, US stocks fell on Thursday while bond yields retreated as investors turned cautious, gauging the potential impact from COVID-19 variants. On the data front, the Labor Department said the number of Americans filing for unemployment benefits rose slightly last week, adding to worries about economic recovery.
09.07.2021
1158
Weekly Review (June 28 – July 2)
STOCKS
Earnings season is approaching, and it may prove to be one of the more critical earnings seasons in recent years, especially with the markets at all-time highs and valuations at peak levels. This means for stocks to continue to push higher, this earnings season, in particular, will need to not only be good, but better than expected so that estimates can be revised higher. The equity market isn't cheap, currently trading around 21 times 12-month forward earnings estimates. More importantly, the multiple on the S&P 500 has been relatively constant for about a year now, trading between 20 and 23 times estimates. This is super important because stocks can only rise from here if multiples expand further in the absence of positive earnings revisions. Given the recent trend, higher multiples seem unlikely.
02.07.2021
1311
Weekly Review (June 21-25)
STOCKS
US contracts on the Dow Jones, S&P 500, NASDAQ and Russell 2000 all jumped, along with European stocks as traders decided to ignore the Fed's inflation debate—and what it might mean for monetary policy—opting instead to stick with the recovery narrative, ahead of a slew of US data, including GDP and Initial Claims, to be released later today. S&P 500 futures accelerated overnight, even after the underlying benchmark index fell during Wednesday's Wall Street session. But the contracts hit a snag toward the end of the Asian session, though they found new life with the European open, reaching their highest level since its June 14 record.
25.06.2021
1386
Weekly Review (June 14-18)
STOCKS
Global equities were mostly lower this week, as the Federal Reserve raised its inflation expectations and moved up the time frame on when it will next hike interest rates. The U.S. monetary policymakers, who previously forecast no interest rate hikes before 2024, estimated their benchmark rate would be raised twice by late 2023. The Fed also indicated it sees the U.S. economy improving faster than expected. Meanwhile, the data showed that US producer prices were 6.6% higher in May than a year earlier, the highest since 2010, adding to signs that inflation is running higher in the country. The S&P 500 shed less than 0.1% on Thursday, offsetting losses due to a rise in Apple and Microsoft. The Dow Jones shed 0.62% and the tech-heavy Nasdaq gained nearly 0.90%.
18.06.2021
1277
Weekly Review (May 31-June 04)
STOCKS
Wall Street stocks were mixed during a shortened trading week, with investors looking ahead to the government’s monthly jobs report update. Equities finished lower on Thursday, with tech stocks leading losses amid the resurgent inflation fears after the data showed US jobless claims continues to decline last week. Strong labor market data made investors nervous ahead of the crucial employment report. As such, the S&P 500 shed 0.36%, the Dow Jones Industrial Average dropped 0.07%, and the tech-heavy Nasdaq lost 1.03%. In Asia, equities were mostly on the defensive ahead of the weekend, awaiting more clarity on the economic recovery and the potential for even higher inflation in the US. In this context, the key question for investors is whether it will be temporary or more permanent.
04.06.2021
1493