Opening Bell: U.S. Futures, Stocks Edge Up Ahead Of Fed Decision, Earnings News
Pinchas Cohen | Jul 25, 2022 12:42
- Futures up despite economic concerns
- Fund managers are now holding the most cash in twenty years
- Demand worries fail to dent the oil price which moved up
- US consumer confidence data is published on Tuesday.
- On Tuesday new home sales figures are released.
- Crude oil inventories are printed on Wednesday.
On Monday, futures on the Dow, S&P, NASDAQ, Russell 2000, and European stocks were all trading in the green despite ongoing concerns about inflation, interest rates, and recession. Markets are keenly awaiting earnings releases from a significant number of stock market giants this week including Meta (NASDAQ:META), Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), GE (NYSE:GE), and Boeing (NYSE:BA).
Institutional investors are increasingly pessimistic about the Fed's ability to reign in inflation this late in the game as well as the choking effect aggressive interest rate tightening will have on an already fragile economy.
Bank of America's recent survey of fund managers showed that cash exposure is now at 6.1%, which is the highest level in over 20 years as they slash the equity exposure in their portfolios.
US futures were trading higher but fluctuating, while in Europe the STOXX 50 seemed to be peaking out.
After overcoming the June 27 peak, Eurozone blue-chip companies were testing a small top, which, if complete, could put the price on the path back to the month's lows.
Asian stocks appear to have hit three-week highs as investors rotate out of stocks and into bonds.
Despite broad regional losses and China's Shanghai Composite's 0.6% decline, the country's high-risk property shares bucked the trend, rising following a report of a restructuring for the beleaguered developer, Evergrande which will hopefully provide a roadmap for the property crisis there.
Yields on the 10-year Treasury note eased.
Yields found support by the neckline of an H&S top.
The dollar edged lower for the third straight day or the sixth session out of seven.
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The greenback is returning to its uptrend line, an overdue correction after reaching the highest since 2002.
Gold was flat after rebounding from an earlier decline. The price maintained gains from its two-day rally amid dollar weakness.
The rally in the price of the yellow metal increased after finding support from the lows since April 2020. If support holds, the price could retest its April highs. If it falls below $1,680, it could fall to the $1400s.
Bitcoin gapped down, falling for the fifth of six sessions.
The cryptocurrency is back in its Rising Channel. Beware of an upside breakout that would propel bids higher toward $30K to retest the Falling Channel top and the neckline of a massive double top, which, if holds, implies another crypto crash.
Oil edged up despite concerns that a recession would dent demand.
The price may have completed a third consecutive Rising flag after completing a Symmetrical Triangle, and it may be on the cusp of completing a Descending Triangle, with an implied target of $60.
h2 Up Ahead/h2Disclaimer: The author currently does not own any of the securities mentioned in this article.
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