Daily Market Report: Dow, Nasdaq, and DAX
US Retail data and earnings in focus with financial titans' Goldman Sachs and JPMorgan releasing
WALL STREET: Earnings in focus with financial heavyweights releasing their figures
The Dow finished in the green yesterday with a fresh record high, with Citigroup impressing in its release but both JPMorgan and Goldman Sachs lagging in terms of price ahead of both their releases later today. Earnings is set to dictate the tone for investor sentiment combined with the release of retail data. But while earnings will dictate the tone, it’ll be easing expectations that will eventually drive share prices as the hunt for yield gets tougher in the current environment. Meanwhile, retail shorts continue to get squeezed, but sentiment is dropping from what was a previous extreme short 79% to 76%, near opposite institutional bias of 82%.
US TECH 100: Powering to fresh record highs as focus set to shift to tech release tomorrow
The focus is currently on the earnings release for the financial titans, making the Dow and not this tech index the focus. However, with Netflix releasing tomorrow, it’ll be the first of the FAANG (Facebook, Apple, Amazon, Netflix, Google) stocks to release its figures, with the streaming service hit by increased competition that’s eating away at its non-original content offering. Its price lagged heavily yesterday amongst tech stocks, as portfolio repositioning takes place ahead of the event. From a technical standpoint it’s a bull trend technical overview where nearly all its technical indicators are flashing green, and squeezing retail bias that remains in heavy short territories at 73%.
GERMANY 30: Relief day as seven consecutive days of losses partially undone
Following heavy losses for the German DAX that included the entirety of last week, it did manage to end higher yesterday and undo some of those losses. US-EU trade worries, dismal European data, and earnings warnings have kept this index from edging higher unlike its US counterparts. Thus far there’s one wild card still in play for European indices, and that’s expectations of ECB easing that’ll plunge yields further into negative-yielding territory. However, trade tariff woes could mean that European equities might underperform compared to US equities, and resulting in portfolio shifts if the threat comes to pass. From a technical standpoint, while the weekly is showing a bull trend that’s hit turbulence at its mid-term resistance, on the daily level it’s shifted to a more consolidatory outlook that still enjoys (crucial) long-term bias. ZEW figures are set to be released today, and earnings will set the tone.
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