Wall Street opened mixed, with mixed economic data!

Wall Street opened mixed, with mixed economic data!
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 04.08.2021 18:44 (UTC)
Post reading time: 1.76 min
74

What about Gold?


Before the cash market opens, the futures market was falling. Dow lost 0.5% in the cash market opening, SP500 was down by 0.3%, and Nasdaq traded 0.1% higher in the first minutes of the market opens. 

The mixed and negative stock markets came after diverse US data. In the beginning, the stock rose with negative jobs numbers as ADP Nonfarm Employment Change in July was much less than market expectation at 330K, down from 690K of the month before and 695K of market expectations. 

Later, Markit Composite, Services, and ISM Non-Manufacturing PMI numbers for July beat the expectations to change the market sentiments. 

Negative job numbers telling us that we should not expect more from FED to reduce its support and start tapering or increase the rates, while great PMI numbers from the US, for both service and composite, adding the positive sentiment in the market, confirming that economic recovery is back on track. 

On the earning front, CVS Health (NYSE: CVS) beat the expectation with $2.42 EPS, General Motors, also with $1.97 EPS, was better than estimates, same as Toyota Motor ADR (TM) with $5.9 EPS. Later and aftermarket close also we have to wait for Booking (NASDAQ: BKNG) and Uber Tech (UBER). 

Gold, as the traditional safe haven, first rose on negative employment numbers. At the same time, a few minutes later, with great PMI data, market risk lowerd, USD increased as positive market sentiment increase the Hawkish policy expectation, which sent the Gold lower. However, as this reason also supports the Gold price, we expect to see the Gold again in the uptrend.  

Despite the free fall from earlier higher, the OBV trend line is still on the positive side and increasing. RSI returned under 50-level, and Parabolic SAR puts its points above candles. Technically we have very mixed signals. Now we have to check the technical levels. $1,809 is the pivot point, while R1 and S1 will be our signals, respectively, at 1,812 and 1,806. Returns above R1 can change the direction, while trading under S1 also confirms the Bear's power. 


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