Dow Jones futures are trading lower as traders continue to weigh their appetite for riskier assets. Yes, we are moving higher in terms of the US stock markets. USA Still, the reality is that this is one of the most hated protests on Wall Street among professional traders who believe there is a significant disconnect between the real economy and the stock market rebound. Also, most of the strength we see in both the US economy. USA As in the whole world it comes from fiscal and monetary policies.
S&P 500 futures, along with Dow Jones futures, are likely to remain sensitive to the second wave of coronavirus, US-China trade related news, and economic data. Steven Mnuchin, the United States Secretary of the Treasury, believes that the United States could be out of its recession by the end of this year. In my opinion, this is only possible if the US USA They can control the spread of the coronavirus. Munchin hopes China honors the trade agreement But he also believes that “decoupling” remains a possibility. Again, it is China that the Trump administration is targeting. Beijing is unlikely to respond well to any threatening behavior. Controlling the spread of the coronavirus is one element, and preventing the American economy from falling into another trade war that the United States cannot afford is a completely different world.
The breadth of the DJIA and S&P 500 market shows that there are more than 33% and 41% percent of stocks listed on a smooth 200-day moving average, respectively.
The strength of the global stock market does not seem very strong today, as the Asian markets closed on a very mixed trading day. Furthermore, the momentum does not seem to be very strong in the European markets, even though yesterday we had a strong economic reading in the Eurozone.
Here is more on these topics:
Dow Jones and S&P 500 Futures Today
Dow Jones futures are trading lower at 115 points, the DJIA ‘index will face many whipsaws today. Dow Jones futures have been traded between profit and loss during the morning price action, and this shows that the bulls may not be able to hold the momentum today.
The Dow Jones Daily Chart shows that the Dow failed to close above the 200-day moving average. We see another failed test of the 200-day moving average, and this confirms that there is enough selling pressure for the DJIA index. But hopes are alive because the Dow Jones industrial average is still trading above the 50- and 100-day moving averages.
The weekly chart of the DJIA index shows that we are still within last week’s trading range. The focus is on the 50- and 100-week smooth moving averages, and whether Dow stocks can push the index above these averages.
The S&P 500 Index shows a better representation of the overall stock market, and confirms that there is a tug of war between bulls and bears. In simple words, there is no clear direction, and therefore we see further consolidation for the S&P 500 stock index.
Stock Market Rally
The rebound in the US stock market. USA It had another positive day yesterday, and the major indices closed with modest gains. The S&P 500 stocks failed to retain most of its profits because merchants reserved profits due to the increase in coronavirus cases at various critical points. However, there is still hope that trillions of dollars of support in terms of fiscal and monetary policy support will continue to fuel the recovery of the stock market not only in the United States, but also around the world. The reality is that it is difficult to measure the real recovery in terms of economic sentiment and data when much of the economy is taking emergency measures, such as licensing schemes in the United Kingdom and stimulus controls in the United States.
For example, the unemployment rate in the UK has been artificially kept low due to the leave scheme, and by the time the government starts to withdraw its support, the consequences will start to appear. The current unemployment rate could jump well above 20%.
Similarly, in the United States, we have seen massive support from the fiscal policy front, and Treasury Secretary Steven Mnuchin is talking about yet another stimulus package to help Americans. We will likely see the stimulus package coming to light in July, which is next month. In his own words, “it is something we are considering very seriously.”
The S & P500 Index closed higher yesterday at 0.43%, and the Dow Jones rose 0.50% yesterday. Once again, tech stocks led gains in the S&P 500 index. 8 of the 11 sectors closed in positive territory. American airlines
The S&P 500 is trading at a price / earnings ratio of 22 on a tracking basis, and the dividend yield is 1.93% on a 12-month basis.
Coronavirus: EU travel restrictions and new cases
The recent increase in coronavirus is due to the spread of Covid-19 in the United States, not the result of the test, Anthony Fauci, the leading infectious disease expert for the United States government, said yesterday. He told the White House that the next few weeks are critical to reducing the coronavirus resurgence. California and Texas have seen another record daily jump in their coronavirus cases, and the infection rate in Florida has also soared above the critical 10%. States will continue to fight this virus, and it appears that they are doing everything possible not to shut down their economies. States are waging an uphill battle, which is not easy to win, as evidenced by comments from the Texas governor, who recently said he is not in favor of imposing a blockade. According to Anthony Fauci, the country is relying on a coronavirus vaccine, and it won’t be until early next year.
The EU will reduce its travel restrictions starting next month, and lists are being prepared for the countries from which travelers will be allowed. Since EE. USA It has not controlled the virus very well, one of the criteria for the entry list, there is concern that the USA. USA It may be on the wrong list. If this turns out to be a reality, EU officials will likely face a backlash from President Trump. The final decision is likely to come out early next week, and this could lead to geopolitical tensions between the US. USA And the EU.
Trump News: “TrumpKillsUS”, a major trend on Twitter
Trump did not mention the murder of George Floyd, a black man killed in police custody, in his speech in Arizona. Trump even went a step further and joined the police, showing no sympathy for the Americans protesting against police brutality.
“TrumpKillsUS” is another major trend on Twitter with over 72.3K tweets. Currently, it ranks fifth with a team of people trying to bring this to first place. Before the elections, which may seem a long way off for now, trends like these could create more obstacles for President Trump and the stock market.