U.S. Indices Rise Ahead of Major Earnings Week
All three major U.S. indices closing in the green
Following one of the worst trading weeks in recent memory, markets impressively rebounded on Monday with all three major U.S. indices closing in the green. Last week, the Dow, S&P, and Nasdaq finished 3% lower while today markets were able to book solid gains with the Nasdaq up 2.55%, the S&P up 1.6%, and the Dow 0.76% higher.
Earnings remain in focus this week
Earnings will continue to remain in focus this week with several major players set to release reports, starting with Amazon and Google on Tuesday. Qualcomm, Spotify, eBay, and PayPal are due Wednesday. Apple stock rose following the announcment the compnay is set to sell bonds as well as sharebuyback while the dollar, oil-futures, and gold-futures all saw upward movement today. Apart from earnings, market focus will also be on President Biden’s latest $1.9 trillion economic aid package. Globally, both Asian and European markets impressivly finished in the green.
The SPY has set the top at $386-level and broke through short-term support at $377. It is our opinion that the market could be prone to further corrections and the next level of support is set at the 50-day moving average, $364-$370. We continue seeing a strong rotation from growth to value stocks and until an additional breakout is maintained, our models are projecting SPY to trade in the range of $364-$390. We encourage all market commentary readers to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Key U.S. Economic Reports/Events This Week
- ADP Employment Report (January) – Wednesday
- Weekly Jobless Claims (1/30) – Thursday
- Factory Orders (December) – Thursday
- Productivity (Q4) – Thursday
- Unit Labor Costs (Q4) – Thursday
- Unemployment (January) – Friday
- Average Hourly Earnings (January) – Friday
- Trade Deficit (December) – Friday
- Consumer Credit (December) – Friday
Upcoming Earnings
- BABA – Alibaba – Tuesday
- AMZN – Amazon.com – Tuesday
- GOOG, GOOGL- Alphabet – Tuesday
- XOM – Exxon Mobil – Tuesday
- UPS – United Parcel Services – Tuesday
- PYPL – PayPal – Wednesday
- QCOM – Qualcomm- Wednesday
- ABBV – Abbvie – Wednesday
- SPOT – Spotify – Wednesday
- HUM – Humana – Wednesday
- EBAY – eBay – Wednesday
- TM – Toyota – Thursday
- TMUS – T-Mobile – Thursday
- PM – Philip Morris – Thursday
- SNAP – Snap Inc. – Thursday
- CAH – Cardinal Health – Friday
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For reference, the S&P 10-Day Forecast is shown below:
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Tuesday Morning Featured Symbol
Our featured symbol for Tuesday is S&P 500 Technology Sector SPDR (XLK). XLK is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The stock is trading at $132.16 with a vector of -0.69% at the time of publication.
10-Day Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does not have a position in the featured symbol, XLK. Our featured symbol is part of your free subscription service. Not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
Oil
West Texas Intermediate for Crude Oil delivery (CL.1) priced at $53.54 per barrel, up 2.57% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $35.49 at the time of publication. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Gold
The price for the Gold Continuous Contract (GC00) is up 0.73% at $1863.80 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $173.62, at the time of publication. Vector signals show -0.34% for today. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Treasuries
The yield on the 10-year Treasury note is down, at 1.013% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.773% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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Volatility
The CBOE Volatility Index (^VIX) is $30.24 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session
