The S&P 500 futures along with Dow Jones futures are likely to continue their focus on the earnings season. Microsoft (NASDAQ:MSFT), Blackstone Group (NYSE:BX), Roche (OTC:RHHBY), Intel (NASDAQ:INTC), Unilever (NYSE:UL), Daimler (OTC:DDAIF) are just some of the names that are going to be under the spotlight today because of their earnings.
Gold Prices At 11-year High
Gold prices sprinted to 11-year high and thrashed the psychological resistance level of $1,850. At the time of writing this, the precious metal was trading at $1,857. The next target is not 1,900 but the all-time high of 1,921 which the spot gold prices achieved back in 2011. Most of these gains are due to the loose monetary policy and escalating geopolitical tensions between the US and China.
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DJIA Index And S&P500 Index: Market Breadth
The stock market’s breadth shows bulls are back in the driving seat. There has been an improvement in bullish sentiment for the Dow Jones index, 50% of the stocks have moved above their 200-day moving average.
The S&P 500 stocks also display strength and 52% of the stocks are trading above their 200-day moving average.
Dow Jones And S&P 500 Futures Today
The Dow Jones futures are trading higher by 50 points, investors are trying to keep positive attitude towards the coronavirus stock rally.
The Dow Jones futures confirm bulls are in control of the price. The Dow’s price is trading the 50-day moving average and this has strengthened the bull case. The next biggest milestone, and a further vote of confidence, will surface when the Dow Jones’s 50 day moving average will cross above the 200-day moving average on a daily time frame.
The Dow’s weekly chart shows that we are still within the last week’s high and low. The DJIA’s price is trading above all the critical 50, 100 and 200 week moving averages which means there are less obstacles in the way for the Dow stocks to continue their upward journey. The Dow Jones index can get more tailwind if we cross above the last week’s high.
The S&P 500 index is trading nearly 20% higher than its 100-day price average and this means a retracement may take place. But, this doesn’t mean there is anything to worry about because bulls are still ruling. The S&P 500’s price is trading above the 50, 100 and 200 week moving averages. The S&P 500 index needs to stay above the 50-week moving average on a weekly frame for this bullish momentum to continue.
Stock Market Rally
The S&P500 index gained its strength back and it is positive for the year. It surged 0.17% yesterday. All the 11 sectors of the S&P 500 index closed in positive territory with consumer discretionary and information technology sectors leading the way. Occidental (NYSE:OXY) was one of the strongest S&P 500 stock and contributed most of the gains for the index. The S&P 500 index is trading at a price to earnings ratio of 23.6 on a trailing basis.
The Dow Jones index also advanced yesterday and closed with a gain of 159 points. 21 out of 30 DJ30 stocks closed in positive territory.
The NASDAQ composite also known as the tech index declined 1.09%. Tesla (NASDAQ:TSLA) was the biggest drag for the index. Tesla stock price fell 4.54% yesterday.
Trump Says Coronavirus Situation will “Get Worse Before It Gets Better”
Donald Trump gave his first Covid-19 press conference since April and he conceded the coronavirus situation would “get worse before it gets better” This clearly shows that the US still has significant problems in controlling the spread of coronavirus.
Trump is also finally supporting wearing masks. In order to slow the coronavirus spread, Trump said in his news conference “if you can, use the mask.” Trump continued “If you're in a group, I would put it on...I have no problem with the masks." He adds "I have the mask right here. I carry it, and I will use it gladly...I view it this way - anything that potentially can help and that certainly potentially can help is a good thing."