The S&P 500 is heading for its sixth consecutive monthly profit
The major indices have been ubiquitous this week, with a look at a number of Big Tech earnings reports and the two day period Federal Reserve meetingthat started on Tuesday. On Monday, Dow Jones Industrial Average (DJI), S&P 500 Index (SPX) and Nasdaq composite (IXIC) all achieved record highs and their fifth victories in a row. On Tuesday, however, the situation on Wall Street calmed down and all three indices broke off their previous winning streak. However, the Nasdaq climbed back onto the charts the next day, with several FAANG names added to the profit settlement and the Fed choosing to keep rates near zero. Markets closed strong on Thursday, wiping away disappointing jobs and gross domestic product data. As stocks take a breather today, all three indices are headed for weekly and monthly gains sixth consecutive monthly profit.
FAANG call for prizes
Wall Street has seen a deluge of FAANG winners this week and while results have been mostly bullish, the response has been mixed. Apple (AAPL) and Google parent Alphabet (GOOGLE) both entered the profit confession with a positive reaction from brokers in the middle of the week, although the former took a breather after their report and the latter climbed to a new record high. Facebook (FB), meanwhile, was stifled after monthly active user growth fell well below analyst estimates. Amazon.com (AMZN). Cryptocurrency.
Stocks will go up next month
Several stocks have historically shown bullish signals this week that could point to growth as investors head into August. Semiconductor name United microelectronics (UMC) pulled back on a trendline that has helped the stock get higher while in the past Crowd strikes (CRWD) recent high paired with historically low implied volatility (IV) suggests that the recent pullback may be short-lived. Billowing Infosys (INFY) has also taken a step back, but there are plenty of reasons to believe that new highs could be made in the future for tech stock as well.
Energy, technology stocks headline earnings season at the start of August
August begins with the last high-income week of the quarter with many big names on deck, especially in the energy and technology sectors. This list includes Alibaba (BABA), Amgen (AMGN), BP (BP), Clorox (CLX), CVS Health (CVS), DraftKings (DKNG), Electronic Arts (EA), Eli Lilly (LLY), Etsy (ETSY) , Lyft (LYFT), Occidental Petroleum (OXY), Plug Power (PLUG), Roku (ROKU) and Uber (UBER). It also publishes a range of monthly job data and the final Markit Purchasing Managers’ Index (PMI) for July.
In the meantime, check out our latest Outlook for Monday morningwhere Senior VP of Research Todd Salamone speculates on what levels of SPX support and resistance investors should be watching next. Also, Senior Quantitative Analyst Rocky White breaks down the differences and methodology between the two Investor sentiment surveys.