U.S. Stimulus Package In Focus This Week, Tesla Tops $600 Billion Market Value Mark
After closing at an all-time high on Friday due to stimulus confidence, U.S. markets traded to mixed results on Monday with the S&P and Dow trading slightly lower while Nasdaq booked small gains. On Capitol Hill, both President Trump and Senate majority leader McConnell offered optimistic sentiment regarding the $908 billion stimulus proposal with some expecting additional progress before the week’s end.
DoorDash and Airbnb make their market debuts this week
Also on the Congressional floor, the House of Representatives passed a bill on Friday to decriminalise marijuana which will need to pass in the Senate to become a federal law. DoorDash and Airbnb are set to make their market debuts this week while Tesla has already made waves with shares surging, currently topping the $600 billion market value mark. Adobe, Campbell Soup, Costco Wholesale, and Oracle will headline earnings releases this week. Overseas, negotiations between the U.K. and the E.U. continue as the Brexit deadline approaches, though lack of progress has hurt the British pound.
SPY between the $340-$360 levels
We are still seeing strong rotation from growth to value stocks and believe the SPY is on its way to retest its recent highs. Until an additional breakout is sustained, our models are projecting the SPY to trade between the $340-$360 levels. With the market prone to further corrections, the next level of support is set at $350. We will continue monitoring VIX levels, as the market can overshoot support and resistance levels when VIX is trading near the $25 level. 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 Credit (October) – Monday
- Productivity (Q3) – Tuesday
- Unit Labor Costs (Q3) – Tuesday
- Job Openings (October) – Wednesday
- Wholesale Inventories (October) – Wednesday
- Consumer Price Index (November) – Thursday
- Core CPI (November) – Thursday
- Federal Budget (November) – Thursday
- Weekly Jobless Claims (12/5) – Thursday
- Consumer Sentiment Index (December) – Friday
Upcoming Earnings
- CHWY – Chewy – Tuesday
- GME – GameStop – Tuesday
- AZO – AutoZone – Tuesday
- HRB – H&R Block – Tuesday
- ADBE – Adobe – Wednesday
- CPB – Campbell Soup – Wednesday
- COST – Costco Wholesale – Thursday
- AVGO – Broadcom – Thursday
- PLAY – Dave & Buster’s – Thursday
- LULU – Lululemon Athletica – Thursday
- ORCL – Oracle – Thursday
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For reference, the S&P 10-Day Forecast is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
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Tuesday Morning Featured Symbol
Our featured symbol for Tuesday is Texas Instruments (TXN). TXN is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The stock is trading at $165.75 with a vector of +0.76% 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, TXN. 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.
Oil
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $45.71 per barrel, down 1.19% 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 $31.38 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.
Gold
The price for the Gold Continuous Contract (GC00) is up 1.21% at $1862.30 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 $174.33, at the time of publication. Vector signals show -0.47% 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.
Treasuries
The yield on the 10-year Treasury note is down, at 0.930% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.689% 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 is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Volatility
The CBOE Volatility Index (^VIX) is $21.62 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.
