Market predictions next week

Share to Twitter Share to Linkedin Topline The stock market rebounded strongly on Friday, posting its first positive week this month as recession fears subsided somewhat thanks to positive economic data suggesting that inflation may have peaked, while some experts expressed optimism about the health of the economy. Key Facts Stocks snapped a three-week losing streak on Friday: The Dow Jones Industrial Average rose 2.7%, over 800 points, while the S&P 500 jumped 3.1% and the tech-heavy Nasdaq Composite 3.3%. Markets got a boost after the latest consumer sentiment survey from the University of Michigan showed that inflation expectations eased slightly in June, rising 5.3% compared to a year ago—but lower than the 5.4% expected. Investors also cheered optimistic remarks about the economy from St. Louis Federal Reserve President James Bullard, who said that recession fears are “overblown” and consumer spending remains strong. Stocks … [Read more...] about Dow Jumps 800 Points, Stocks Snap Three-Week Losing Streak After Inflation Expectations Ease

Share to Twitter Share to Linkedin Topline Energy stocks once again outperformed the rest of the market as oil and gas prices remain elevated due to inflation; despite ongoing risks to tight global supply such as Russia’s invasion of Ukraine, some experts are now predicting that prices will decline by next year. Key Facts Energy prices have been surging in recent months: Demand remains high but supply has been tight ever since the West imposed sanctions on Russian oil after the country’s invasion of Ukraine in late February. Despite their first weekly loss in over a month last Friday, oil prices jumped again on Tuesday: The price of U.S. benchmark West Texas Intermediate sits at nearly $111 per barrel, while international benchmark Brent crude trades at more than $114 per barrel. Major energy companies were among the best-performing stocks on Tuesday as the market rebounded from its worst week since March 2020, with the Dow gaining over … [Read more...] about Energy Stocks Jump As Oil Surges Again—Prices Will Remain Elevated Through Summer

Share to Twitter Share to Linkedin Topline Stocks fell slightly on Wednesday as a growing number of major Wall Street firms warned that the likelihood of a recession has risen sharply, while Federal Reserve Chair Jerome Powell pledged that the central bank is “ strongly committed ” to raising rates until inflation moderates. Key Facts Markets finished lower in choppy trading: The Dow Jones Industrial Average fell 0.2%, less than 100 points, while the S&P 500 lost 0.1% and the tech-heavy Nasdaq Composite 0.2%. The Dow was down by as much as 400 points but stocks pared back losses following comments from Fed Chair Powell, who said the central bank is “determined to take the measures necessary to restore price stability” and that “ongoing rate increases will be appropriate.” Citigroup became the latest Wall Street bank to increase its recession odds, meanwhile, forecasting a 50% chance of a downturn as consumer demand “looks to be … [Read more...] about Stocks Fall After Powell Pledges More Big Rate Hikes To Combat Inflation

Asian shares wobbled while commodity prices fell on Thursday as mounting worries about the risks of a global recession amid aggressive rate hikes by the Federal Reserve kept broad investor sentiment fragile. MSCI's broadest index of Asia-Pacific shares outside Japan reversed earlier gains to be mostly flat in Asia trade. Stocks in South Korea were off, while Japan's Nikkei was broadly unchanged. Hong Kong's Hang Seng Index climbed 0.6%, following the news that Chinese President Xi Jinping chaired a top-level meeting on Wednesday that approved a plan for the healthy development of China's large payment firms and fintech sector. Overnight, the dollar fell alongside U.S. Treasury yields after Fed Chair Jerome Powell, in testimony to the U.S. Senate Banking Committee, acknowledged a recession was "certainly a possibility", but the Fed is not trying to engineer one. A Reuters poll showed the Fed will deliver another 75-basis-point interest rate hike in July, followed by a … [Read more...] about Asia shares struggle, oil falls as recession fears linger

The gold futures contract and gold mining stocks may have topped out after a historic uptrend that lifted the yellow metal to an all-time high above $2,000. Stabilization in the world economy and its beneficial effect on the bond market predict growing headwinds for gold bugs in coming weeks, perhaps offering a buying opportunity when the dreaded second wave of the pandemic makes an unwelcome appearance this fall and winter. Ket Takeawasy The gold futures contract may have topped out above $2,000. Gold miners are unlikely to post new highs until the futures contract rallies above the recent high. The yellow metal may offer a low-risk buying opportunity if a second wave of COVID-19 hits with lethal force this fall and winter. Big cyclical highs posted in prior years represent major resistance levels that can take a long time to overcome, if at all. Just look at price action in big tech names that topped out when the internet bubble burst in 2000. It took more … [Read more...] about Gold May Have Topped Out After Historic Uptrend

Dow component American Express Company ( AXP ) broke out to an all-time high in April, just a few days after beating first quarter earnings per share (EPS) estimates by $0.04 and reaffirming 2019 guidance . A series of analyst upgrades has followed in May and June, adding to relative strength, which has also benefited from speculation the financial giant will eventually merge with The Goldman Sachs Group, Inc. ( GS ). American Express stock has now lifted into the sixth slot in Dow component performance, just two clicks below rival Visa Inc. ( V ). Amex underperformed Visa and Mastercard Incorporated ( MA ) for years but has played an admirable game of catch-up since 2017 and is now matching the upside of its rivals, point for point. This bodes well for healthy returns in the new decade, which should also benefit from the company's broader product catalog and more affluent customer base. AXP Long-Term Chart (1990 – 2019) The stock completed a double bottom … [Read more...] about American Express Stock Lifts Into Market Leadership

General Motors Company ( GM ) stock has been battered and bruised by the recent market swoon, dropping more than 30% in just four weeks. Fortunately for market players, the decline has reached a zone of strong support , completing a bullish trade set-up that could yield upside of 30%-plus in coming weeks. Just keep in mind that this is not a long-term bottom call because the stock has been trending lower since October 2017 and could easily post new lows for the rest of 2020. Major declines rarely move in straight lines because short squeezes and dip buying generate sizeable counter-waves that yield impressive profits for well-timed long positions. Vertical downdrafts are especially vulnerable to high-percentage counter-waves because they set off oversold buying signals, attracting market timers and other technicians. These bounces can produce even stronger upside when they start at major support levels like GM's closing print on Monday. GM Long-Term Chart (2010 – 2020) … [Read more...] about General Motors Stock Could Bounce 30% in Coming Weeks

Share to Twitter Share to Linkedin Topline With oil prices down this month, billionaire investor Warren Buffett is once again buying the dip by adding to one of his favorite energy stocks, as his investing conglomerate Berkshire Hathaway purchased roughly $500 million worth of Occidental Petroleum shares this week. Key Facts Buffett’s Berkshire Hathaway purchased roughly 9.5 million shares of Occidental over the past week at a cost of nearly $530 million, according to a new regulatory filing late on Wednesday. After a buying spree that started in late February, Buffett’s investing conglomerate now owns roughly 152 million shares of Occidental—a 16.3% stake worth nearly $8.5 billion that makes Berkshire by far and away the largest shareholder in the energy giant. Shares of Occidental Petroleum failed to rally on the news Thursday, but it remains one of the best-performing stocks this year, rising over 90% thanks to the massive spike in oil … [Read more...] about Warren Buffett Adds To Massive Stake In Occidental Petroleum, Buying The Dip After Oil Prices Drop

(Representative image: Reuters) Dear Reader, A whiff of change wafted through the markets this week. The focus shifted from worrying over inflation to concerns about growth. The advance Purchasing Managers Indices (PMIs) for the current month for the US and the Eurozone showed slowing growth, but while they indicated inflation was cooling in the US, it continued to rise relentlessly in the Eurozone. They also reflected stalling demand and falling business confidence. The New York Fed’s economic model predicted an 80 percent chance of a hard landing for the US. UK consumer confidence hit a record low. In China, housing starts and property transactions reached extreme lows. The worries over an imminent recession in the US, the UK and the Eurozone sent commodity prices sharply lower. Copper prices have moved down dramatically. My colleague Ravi Ananthanarayanan wrote about the dark clouds hovering over steel . Crude oil prices too fell. That dissipated some of the … [Read more...] about MC Pro Weekender | A new narrative

Oil prices fell 2% in early trade on Thursday, extending losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand. U.S. West Texas Intermediate (WTI) crude futures fell $2.39, or 2.3%, to $103.80 a barrel by 0031 GMT. Brent crude futures dropped $2.24, or 2.0%, to $109.50 a barrel. Both benchmarks tumbled around 3% on Wednesday to hit their lowest levels since mid-May. Investors are continuing to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb inflation with interest rate increases. "Oil markets remained under pressure as investors were concerned that U.S. rate hikes would stall an economic recovery and dampen fuel demand," said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd. Close "The U.S. and European hedge funds have been selling off their positions ahead of the end of the second … [Read more...] about Oil extends losses as recession fears mount