Trade War Fears Off, Risk On

Trade War Fears Off, Risk On

Trade War Fears Off, Risk On

$DIA, $SPY, $QQQ, $VXX

Global stock indexes rose Thursday as investors around the world grew more optimistic that a trade dispute between the US and China will resolve without much damage.

In the US financials retailers posted some of the biggest gains.

The rally started Wednesday as American and Chinese officials reassured investors that they are willing to talk and aren’t rushing into a trade war that could hurt global economic growth and company profits.

Thursday, banks rose along with interest rates, retailers and consumer-focused companies kept rising, and industrial and technology companies turned higher.

Volatility

Between 22 March and 4 April, the S&P 500 rose at least 1% or fell at least 1% in 8 out of 9 trading days.

Globally

 The German DAX jumped 2.9% and the CAC 40 in France rose 2.6%. Britain’s FTSE 100 surged 2.4%. Japan’s Nikkei 225 gained 1.5% and South Korea’s Kospi rallied 1.2%. Markets in Hong Kong were closed for a holiday.
Earnings

Trade tensions have been the market’s main focus over the last few weeks, but that will change next week because companies will start to report Q-1 results in earnest on 13 April.

Investors are expecting another Quarter of strong profit growth, and the reports will give investors more insight into the effects of the recent corporate tax cuts on the economy as well as company profits and spending.

Interest Rates

Companies that pay hefty dividends, such as utilities and real estate investment trusts, lagged the rest of the market. Their large dividend payments make those stocks similar to bonds, and investors find the stocks more appealing when bond yields are low.

Thursday, the major US stock market indexes finished at: DJIA +240.92 at 24505.22, NAS Comp +34.44 at 7076.55, S&P 500 +18.15 at 2662.84

Volume: Trade on the NYSE came in at 754-M/shares exchanged

  • NAS Comp +2.5% YTD
  • S&P 500 -0.4% YTD
  • DJIA -0.9% YTD
  • Russell 2000 +0.5% YTD

HeffX-LTN’s Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
5 April 2018 QQQ 160.87 Neutral (-0.14) 158.64 161.27
5 April 2018 DIA 245.51 Neutral (-0.15) 243.12 246.02
5 April 2018 SPY 265.96 Neutral (-0.21) 259.11 266.30

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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