Here are today's directional views from the global research desks of Trading Central! These are starting points for your own research to identify opportunities that make sense for you. Like what you see? Feel free to forward this to a friend!
Market Wrap: Stocks, Bonds, Commodities
On Tuesday, U.S. stocks closed higher for a second session, driven by banks' strong quarterly results. The Dow Jones Industrial Average rose 366 points (+1.06%) to 34,951, the S&P 500 climbed 32 points (+0.71%) to 4,555, and the Nasdaq 100 was up 128 points (+0.82%) to 15,841.
Software & services (+2.67%), banks (+1.90%), and transportation (+1.67%) stock sectors led the market higher.
Bank of America (BAC) rose by 4.42%, as the bank's second-quarter trading revenue surpassed market expectations.
Morgan Stanley (MS) gained 6.45%. The bank's quarterly wealth management net revenue exceeded expectations.
Charles Schwab (SCHW) surged 12.57% after reporting higher-than-expected second-quarter customer deposits.
Bank of New York Mellon (BK) was up 4.11% on better-than-expected quarterly net interest revenue and earnings.
On the other hand, Lockheed Martin (LMT) fell 3.04%, although the defense contractor delivered strong quarterly earnings and raised its full-year guidance.
Microsoft (MSFT) rose by 3.98% to a record close of $359.49. The software giant announced pricing - $30 per user per month - for its new Microsoft 365 artificial intelligence subscription service.
Nvidia (NVDA) gained 2.22% to $474.94, also a record close after Bank of America Securities raised its price target on the stock to $550.
The US 10-year Treasury yield slipped 2 basis points to 3.787%.
Regarding U.S. economic data, retail sales grew 0.2% on month in June (vs +0.3% expected). Industrial production dropped 0.5% on month in June (vs +0.2% expected).
European stocks also closed higher, with the DAX 40 rising 0.35%, the CAC 40 gaining 0.38%, and the FTSE 100 increasing 0.64%.
U.S. WTI crude futures rose $1.50 to $75.68 a barrel.
Gold price increased $23 to $1,978 an ounce.
Market Wrap: Forex
The US dollar index rose to 99.94.
EUR/USD declined 5 pips to 1.1231, and GBP/USD dropped 34 pips to 1.3039.
USD/JPY added 19 pips to 138.90.
AUD/USD dipped 4 pips to 0.6812. In Australia, the Reserve Bank of Australia's latest monetary policy meeting minutes revealed that officials agreed that some further tightening of monetary policy may be required to bring inflation back to the target within a reasonable timeframe.
USD/CHF dropped 28 pips to 0.8577.
USD/CAD was down 29 pips to 1.3170. Canada's data showed that the inflation rate eased to 2.8% on year in June (vs 3.0% expected).
Bitcoin remained heavy trading lower to $29,800.
Gold Intraday: bullish bias above 1966.00.
Pivot:
1966.00
Our preference:
Long positions above 1966.00 with targets at 1990.00 & 2000.00 in extension.
Alternative scenario:
Below 1966.00 look for further downside with 1955.00 & 1946.00 as targets.
Comment:
The RSI is above its neutrality area at 50%.
Crude Oil (WTI) (Q3) Intraday: aim @ 76.90.
Pivot:
74.90
Our preference:
Long positions above 74.90 with targets at 76.40 & 76.90 in extension.
Alternative scenario:
Below 74.90 look for further downside with 73.80 & 73.15 as targets.
Comment:
The next resistances are at 76.40 and then at 76.90.
EUR/USD Intraday: watch 1.1185.
Pivot:
1.1255
Our preference:
Short positions below 1.1255 with targets at 1.1205 & 1.1185 in extension.
Alternative scenario:
Above 1.1255 look for further upside with 1.1275 & 1.1295 as targets.
Comment:
The RSI advocates for further decline.
Bitcoin / Dollar intraday: rebound towards 30560
Our pivot point stands at 29390.
Our preference:
Rebound towards 30560
Alternative scenario:
The downside breakout of 29390 would call for 28970 and 28720.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 29858 and 29989).
S&P 500 (CME) (U3) Intraday: intraday support around 4565.00.
Pivot:
4565.00
Our preference:
Long positions above 4565.00 with targets at 4605.00 & 4625.00 in extension.
Alternative scenario:
Below 4565.00 look for further downside with 4545.00 & 4528.00 as targets.
Comment:
The next resistances are at 4605.00 and then at 4625.00.
Tesla intraday: the upside prevails as long as 288.61 is support
Our pivot point stands at 288.61
Our preference:
The upside prevails as long as 288.61 is support
Alternative scenario:
Below 288.61, expect 283.38 and 280.27.
Comment:
The RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Tesla is above its 20 and 50 period moving average (respectively at 289.45 and 284.15).
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.
