U.S. Futures Rise Amid Earnings Reports and Central Bank Meetings

Global stocks and U.S. stock futures rose slightly on Monday and long-term U.S. yields fell on Monday as the week kicked off with a focus on earnings reports and central bank meetings that could hint at potential interest rate cuts in the U.S. and Britain. July's U.S. jobs data, manufacturing surveys, and eurozone economic data are expected later in the week.

The tech sector, recovering from recent losses, saw traders hesitant to reinvest ahead of reports from major companies like Microsoft, which is set to release earnings this week. Major tech companies including Meta, Apple, and Amazon are also scheduled to report their earnings, with disappointing results potentially causing further market concerns, as seen with Alphabet's recent underperformance.

Apple's AI features are delayed to October updates, and the company faces declining device sales amid increased competition. Tesla's stock rose after being named Morgan Stanley's top pick among U.S. auto stocks, while the energy sector declined due to falling oil prices.

McDonald's stock increased despite a drop in quarterly sales, buoyed by optimism around its new meal deals. Stellantis' stock fell after a downgrade from Deutsche Bank, and Abbott Laboratories saw a slight decline after a jury awarded damages against the company. Crypto stocks were volatile, with significant drops in Coinbase, Riot Platforms, and Marathon Digital despite early gains.

Investors hope the Fed will signal a potential rate cut in September, while the July non-farm payrolls report on Friday will be scrutinized for labor market insights. Tech megacaps have driven market rallies, leading investors to also consider mid- and small-cap stocks in a low-interest-rate environment. The U.S. Treasury's upcoming bond sale plans and potential stimulus from China's politburo meeting added to the market's cautious outlook ahead. Therefore, it is anticipated that the overall US stock market may fluctuate within the higher range, while still retaining the risk and volatility of a potential downward reversal.

Data for Technical Analysis (1H) CFD US 500 [S&P 500]

Resistance : 5455.0, 5457.9, 5462.6

Support : 5445.6, 5442.7, 5438.0                     

1H Outlook

Source: TradingView                                                           

Buy/Long 1 If the support at the price range 5435.6 - 5445.6 is touched, but the support at 5445.6 cannot be broken, the TP may be set around 5455.1 and the SL around 5430.6, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 5455.0 - 5465.0, TP may be set around 5479.0 and SL around 5440.6, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 5455.0 - 5465.0 is touched, but the resistance at 5455.0 cannot be broken, the TP may be set around 5442.8 and the SL around 5470.0, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 5435.6 - 5445.6, TP may be set around 5424.0 and SL around 5460.0, or up to the risk appetite.       

Pivot Points Jul 30, 2024 02:18AM GMT

Sources: Investing 1, Investing 2