Markets Likely To Be Volatile Due To Slowing Economy, Trade Worries
Following a rough week, stocks can only get rougher at this stage and be even more volatile because investors have new information regarding trade and strength of the present economy. There are just countable earnings in this week with companies like Cisco Systems, Walmart, Deere and Nvidia. These companies have recently reported lesser collection of revenue in the second quarter.
Other significant economic reports are about to come throughout the week like CPI information data on Tuesday, several sets of key reports on Thursday consisting of retail sales, industrial manufacture, PCE inflation data and regional surveys of FED. However, the investors would be minutely focusing on the behavior of the stock market. It would be really significant to observe how stocks behave to variables such as Chinese currency and Treasury yields. It all would be leader in trade talks if the Chinese Central Bank permits Yuan to reduce its value further.
Investors would also be interested in knowing what hint the stock market gives following outsized moves in two directions for this week. Chief Investment Strategist working for CFRA, Sam Stovall said that he considers that the worst has been dealt with and stocks would be in their highs soon by the end of this month. He also said that he thinks what they had been through was once again a trial of the May pullback and it was victorious for them. Stovall said of closely checking upon sub industries of S&P 1500. According to July 12, 2019, 91% went beyond their 50 day moving average which is an exceptionally increased figure.
However, as thought of Monday during the time stocks had been catering, only 10% went beyond the 50-day moving average. Stovall said that it was a clear hint of washout. He said that they are slowly coming out of the pullback and are doing quite well. This month should possibly end with a new high which hasn’t been reached before.