Archives of “July 27, 2021” dayrss
It’s all quite deceptive, really – I mean, they are called the markets, after all, and things are bought and sold there and not much else happens at all. So how can the markets not be about price, when price is all there is?
Here is my solution. The stock market is not the place for bargain hunting. It’s not a shop that has discounts. It’s not about value at all – it’s about price movement. It’s all in the moves. The trick is to discover just how you want the price action to look before you take the plunge and risk your cash.
This is by no means an easy thing to do. It can be extremely hard to buy a share that has just risen 30% from its lows, because we automatically tell ourselves that we missed a bargain. However, it’s vitally important to hear what that kind of price action is telling us. To me, that share is hollering that something very cool is going on. People are buying it – in fact way more people are buying it than selling it. And if there are more buyers than sellers, it’s gonna go up.
Now that is simple.
Selling/profit-taking send indices lower
The major European indices are ending the day with declines. Global stocks have moved mostly lower with China getting hammered overnight once again. The NASDAQ index is sharply lower as well with declines close to 2% ahead of big tech earnings after the close including Alphabet, Apple, and Microsoft.
- German DAX, -0.6%
- France’s CAC, -0.7%
- UK’s FTSE 100, -0.4%
- Spain’s Ibex,-0.76%
- Italy’s FTSE MIB, -0.8%
- Spot gold is trading at $1801.30. That’s up $4.86 or 0.27%.
- Spot silver is down $0.58 or -2.37% at $24.59
- WTI crude oil futures are trading down the $0.78 or -1.08% at $71.41
- S&P index -37 points or 0.84% at 4385.03
- NASDAQ index -287 points or -1.94% at 14552.08
- Dow industrial average -200 points or -0.57% at 34942.29
- The US will recommend some vaccinated people resume wearing masks indoors under certain circumstances
Reversing a decision made just two months ago, the Centers for Disease Control and Prevention is expected to recommend on Tuesday that people vaccinated for the coronavirus resume wearing masks indoors under certain circumstances.
The latest growth estimates from the IMF
- 2021 will be the strongest year since 1976
- 2022 GDP to 4.9% from 4.4%
- US growth to 7.0% vs 6.4% in April forecast; 2022 at 4.9% vs 3.5% prior
- Eurozone growth 4.6% vs 4.4% in April forecast; 2022 at 4.3% vs 3.8% prior
- Japan 2.8% vs 3.3% in April; 2022 3.0% vs 2.5% prior
- Canada 6.3% vs 5.0% prior; 2022 4.5% vs 4.7% prior
- China 8.1% vs 8.4% in April; 2022 at 5.7% vs 5.6% prior
- India 9.5% vs 12.5% in April; 2022 at 8.5% vs 6.9% prior
- UK 7.0% vs 5.3% in April; 2022 at 4.8% vs 5.1% prior
- Recent prices pressures reflect pandemic-related developments and transitory supply-demand mismatches
- New variants and lockdowns could shave 0.8 pp form 2021 and 2022 GDP growth
- Risks around the global baseline are to the downside due to vaccines rollout and inflation
- Full report
Despite a recent uptick in wage growth in the United States, wages of individuals-observed 12 months apart in the Atlanta Federal Reserve’s Wage Growth Tracker-do not indicate broader pressure in the labor market. Data from Canada, Spain, and the United Kingdom show similar patterns of broadly stable wage growth this year
- labor market slack remains substantial
- Inflation expectations are well anchored
- Structural factors
USD/CNH breaches the 6.50 barrier
Chinese authorities pondering the imposition of measures to limit exports, thus keep more steel for domestic use.
The Fed’s Federal Open Market Committee meet Tuesday and Wednesday this week.
- there will be no fresh Summary of Economic Projections issued at this meeting.
- Fed Chair Powell will follow the FOMC statement with a press conference
- FOMC statement due at 1800 GMT on Wednesday 28 July 2021
- Powell presser commences at 1830 GM
And, finally, adding this snippet from UBS, a real quick one.
We expect little news from the Fed this week:
- a repeat of the ‘taper is some ways off’ language from Powell’s mid-July Congressional testimony and possibly an indication that the Fed will be able to assess in the coming meetings whether the economy is ‘on track’ to achieve the taper threshold.
UBS add that implied pricing in the options market for the meeting is roughly in line with the past 12 meetings … that is a SPX move of +/-0.9%.
No dots at this meeting 🙁
Up for the fifth consecutive day
- Dow industrial average rose 82.76 points or 0.24% at 35,144.31
- S&P rose 10.51 points or 0.24% at 4422.30
- NASDAQ index rose 3.72 points or +0.03% at 14,840.71
- Dow, S&P and NASDAQ also hit record intraday highs
- energy materials are the biggest sector leaders
- healthcare utilities biggest sector laggards
- Dow 35,150.37
- S&P 4423.20
- NASDAQ 14863.60
- Raytheon technologies
On Wednesday, Boeing, Ford, McDonalds, Facebook are some of the companies reporting.
- O’Reilly automotive
- Bristol-Myers Squibb
- Ford motor
- Lam research
- General Dynamics
- Hess corporation
- Shake shack
Finally, on Thursday Amazon, Merch, Mastercard earnings will be released.
- US Steel
- First Solar
- Gilead Sciences
- Martin Marietta