U.S. Markets See Mixed Results Wednesday, Earnings Season Winds Down
Fed Chair Jerome Powell shed light on the labor market recovery
U.S. Markets finished with mixed results on Wednesday as comments from Fed Chair Jerome Powell shed light on the labor market recovery while easing inflation concerns. Likewise, the latest monthly inflation report offered promising data which, alongside strong earnings, boosted U.S. benchmarks to start the trading session. Twitter released earnings after market close on Tuesday which helped the stock rise over 13% today as the company reported its second-ever $1 billion quarter.
Elsewhere, marijuana stocks surged with Tilray leading the pack, up 50%, as several of the latest corporate merge and social discourse helped boost shares. Earnings remain in focus as we round out the week with Disney and PepsiCo reporting on Thursday; Shopify, Wal-Mart, and CVS Health are due to report next week. On Monday, U.S. markets will remain closed in observance of President’s Day. Globally, European markets closed in the red while Asian markets finished impressively higher.
SPY to trade in the range of $364-$390
We continue to see 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. 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 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
- Consumer Price Index (January) – Wednesday
- Core CPI (January) – Wednesday
- Federal Budget (January) – Wednesday
- Wholesale Inventories (December) – Wednesday
- Fed President Jerome Powell Speech – Wednesday
- Weekly Jobless Claims (2/6) – Thursday
- KO – Coca-Cola Company – Wednesday
- UBER – Uber Technologies – Wednesday
- GM – General Motors – Wednesday
- ZG – Zillow Group – Wednesday
- DIS – The Walt Disney Company – Thursday
- PEP – Pepsico, Inc. – Thursday
- DUK – Duke Energy – Thursday
- KHC – The Kraft Heinz – Thursday
- D – Dominion Energy – Friday
For reference, the S&P 10-Day Forecast is shown below:
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Thursday Morning Featured Symbol
Our featured symbol for Thursday is Simon Property Group (SPG). SPG is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The stock is trading at $106.22 with a vector of -0.09% 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 have a position in the featured symbol, SPG. Our featured symbol is part of your free subscription service. It is 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.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $58.39 per barrel, up 0.05% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $38.28 at the time of publication. 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.
The price for the Gold Continuous Contract (GC00) is up 0.36% at $1844.20 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 $172.71 at the time of publication. Vector signals show +0.13% for today. 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.
The yield on the 10-year Treasury note is flat, at 1.168% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.956% 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 negative signals in our 10-day prediction window. 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.
The CBOE Volatility Index (^VIX) is $21.99 at the time of publication, and our 10-day prediction window shows mixed signals. 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