24 Jul

Could the S&P 500 Reach a New High This Week?

WRITTEN BY Ricky Cove

Another record high for the S&P 500

The S&P 500 (SPY) index reached another peak last week, driven by solid earnings by major US corporations. The index was at 2,472.54, with a gain of 0.54%, taking the S&P 500’s year-to-date return to an impressive 10.4%. Earnings were just one of the market movers this week—the Trump administration’s second failure at healthcare (VHT) reform relieved some uncertainty and helped the healthcare sector (XLV) post marginal gains. Falling bond yields (BND) were also positive for the financial sector (XLF). US economic data was mixed, with housing data improving due to an increase in building permits, and the Philadelphia Housing Index falling to 19.5 from 27.6 in the previous month.

Could the S&P 500 Reach a New High This Week?

Speculators increase their bets on the S&P 500

According to the US Commodity Futures Trading Commission, in the week ended July 21, net bullish contracts of large speculators on the S&P 500 index rose to 21,761 from 18,384 contracts the previous week. It was the seventh straight week of gains in bullish positions in the S&P 500.

Another record in this week?

The S&P 500 could reach another peak this week with help from earnings and an accommodative Fed policy statement. A flood of earnings data is due this week, from giants such as Alphabet (GOOG), General Motors, Ford, Facebook, Amazon, and many other tech sector stocks (XLK). The Fed is meeting on July 26, though there are no policy changes expected this month. In the next part of this series, we’ll look at why the US dollar (UUP) remains under pressure.

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Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

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