Thursday, July 18, 2024

Debt Ceiling Concerns Nudge Stocks Lower And Treasury Yields Higher; Technical Analyst Predicts Uptrend to Continue – Moderna (NASDAQ: MRNA)


Shares fell on Tuesday, while Treasury rates rose, as investors became increasingly concerned about the debt impasse as the default deadline loomed.

There was no success during the meeting between the President on Monday Joe Biden and Speaker of the House Kevin McCarthy (R-Calif.) Treasury Secretary Janet Yellen Has repeatedly said that the federal government will run out of money on June 1st.

Preliminary PMI data showed a further divergence in performance between the manufacturing and services sectors, with the latter expanding at its fastest pace in more than a year.

Signals from Tuesday’s trading:

The S&P 500 declined 0.4%, the Dow Jones was relatively flat for the day, while the Nasdaq 100 fell 0.7%. Small caps fared better in the Russell 2000 with a gain of 0.3%.

Performance of US indices on Tuesday

index performance (+/-) worth
Nasdaq 100 -0.68% 13,765.17
S&P 500 Index -0.42% 4,173.37
Dow Industrials -0.03% 33,255.90

Analyzer Color:

The resilience of the market to withstand headwinds has added to the confidence in the near-term trajectory. Carson Group Ryan Detrick Tweeted a data point that reinforces expectations that the October low will not be breached.

“The 200-day moving average of the S&P 500 is officially trading higher,” he added.

Going back over the last 50 years of data, Detrick said, this trend was evident 10 other times and not once were new lows made.

“Really, a strong upward trend was ideal,” he said.

Tuesday trading in major US equity ETFs: In afternoon trading on Tuesday the SPDR S&P 500 ETF Trust Spy was down 0.6% to $416, SPDR Dow Jones Industrial Average ETF Dia down 0.2% to $332.36 and Invesco QQQ Trust QQQ was down 0.8% to $335.23 according to Benzinga Pro Data.

Almost all US equity sectors were negative except Energy Select Sector SPDR Fund XLE And this Select Utilities Sector SPDR Fund xluAnd this Health care Select Sector SPDR Fund xlvup 1.7% and 0.3%, respectively.

Material Select Sector SPDR Fund xlb And this Technology Select Sector SPDR Fund xlksuffered the most, down 1.2% and 1% respectively.

Latest Economic Data:

S&P Global released its Manufacturing and Services Sector Survey. The US Composite PMI rose to 54.5 in May 2023, up from 53.4 the previous month and well above the projected 50, representing the highest rate of private sector expansion since April 2022. The manufacturing PMI fell to 48.5, down from 50.2 in April. and below the expected 50. The Services PMI increased from 53.6 in April to 55.1 in May, above the market estimate of 52.6.

The Richmond Federal Reserve’s manufacturing index for May fell to -15 for the headline index, down from -10 in April.

Sales of new single-family homes in the United States surprisingly rose 4.1% month-on-month in April 2023, to a seasonally adjusted annual rate of 683,000, the highest level since March last year, and more than a forecast of 665,000 is above. However, the March 2023 data was heavily revised, showing a growth of 4% instead of the 9.6% growth reported earlier.

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Stocks in focus:

Modern, Inc. mRNA Up 8.7% on upbeat data on protein replacement therapy

  • Autozone, Inc. azo fell more than 6% after reporting lower-than-expected revenue.
  • PacWest Bancorp. pacw It extended its gains by adding nearly 12% on top of a jump of 19.55% on Monday. The company announced plans on Monday to sell $2.7 billion in real estate loans.
  • Among the major companies to report after the shutdown are Agilent Technologies, Inc. A, Intuit, Inc. into, Palo Alto Networks, Inc. panw, urban outfitters, inc. URBN And Toll Brothers, Inc. to endure,

Commodities, bonds, other global equity markets:

The price of crude rose 1.7%, with a barrel of WTI-grade crude rising to $733. United States Oil Fund ETF USO rose 1.91% to $64.12 per share.

Treasury yields were flat, with the 10-year yield rising to 3.72% and the two-year yield rising 5 basis points to 4.37%. iShares 20+ Year Treasury Bond ETF tlt was down 0.2% for the day.

The dollar moved higher along with the US dollar index, which is tracked by Invesco DB USD Index Bullish Fund ETF uup, Unchanged. The EUR/USD pair, which is tracked by Invesco CurrencyShares Euro Currency Trust FXEwas 0.4% lower at 1.0810.

European equity indices were mostly in the red, as a weak performance in France led to selling in luxury stocks. iShares MSCI Eurozone ETF EZU was down 0.4%.

Gold rose 0.2% to $1,976 an ounce. SPDR Gold Trust GLD rose 0.1% to $183.4. Silver fell 0.5% to $23.52 iShares Silver Trust SLV to $21.61 per unit, down 0.3%. Bitcoin BTC/USD rose 1.5% to $27,255.

Staff Writer Piero Singari updated this report Tuesday afternoon.

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