Monday’s market activity in the US remains extremely optimistic despite negative headlines from around the world. While China applied counter sanctions on the US, Covid-19 numbers continue to rise, and unrest mounts in other regions like Belarus and Lebanon, the Dow Jones and S&P 500 showed significant gains.
The US Producer Price Index (PPI) will be released today. The median forecast is a gain of 0%. Last month’s PPI was down by 0% The index represents the prices for domestic production from the viewpoint of companies as opposed to the CPI, which evaluates prices for consumers. An increase can affect future inflation and/or less profitability for companies.
Assets for trading: Dow Jones, S&P 500.
EU’s credit rating still triple-A despite 750 billion Euro in bonds issued. Affects EUR/USD
UK/Japan trade talks stall following positive announcements last week. Affects GBP/JPY
McDonald’s sues former executive over harassment complaints. Affects McDonald’s stock
UK unemployment data for June holds at 3%. 0% better than forecast. Affects EUR/GBP
The Australian dollar looks to be making an upward run with the short term moving average about to cross the long term. The currency pair is still far from entering the overbought zone so look for an upward trend in the short run.
After major selloffs of Blue Chip tech stocks yesterday (Microsoft, Facebook, etc.), look for the NASDAQ to join the upward trend of the other major U.S. indices that have the Dow and S&P approaching new heights.
Both Caterpillar and Boeing were driving forces behind yesterday’s market advance in the U.S. However, Caterpillar has already reached historic resistance levels and is showing as overbought by most indicators. The price will likely decline today as many investors take profits.
Financial News on This Day in History
1950 – Apple co-founder, Steve Wozniak was born on this day.
1987 – Long-time U.S. Federal Reserve Chairman, Alan Greenspan, was appointed to office for the final years of the Reagan administration. He would maintain that position until 2006 and serve under 4 U.S. Presidents. Several media outlets refer to him as the first “rock star” economist.a