Dow Jones futures are trading modestly as traders want to exercise patience before the meeting of the European Central Bank’s monetary policy and retail sales data in the United States. There is no doubt that news about the coronavirus vaccine from Moderna led traders to buy stocks yesterday. But the fact is that the coronavirus situation in Florida and Texas is steadily worsening, and this keeps Dow Jones’ futures under control.
The Trump administration wants Covid-19 data to be sent directly to them. They want to bypass the Centers for Disease Control; some experts worry about transparency.
Twitter hacking of high profile names like Kim Kardashian and Elon Mush once again gave Bitcoin a bad name and Twitter’s actions are likely to react.
Here’s more on this:
Meeting of the ECB, Euro, European equities and Dow
Dow Jones’ industrial average and S&P 500 futures are paying close attention to the monetary policy decision of the European Central Bank. This will likely lead to some wild moves for the euro currency against the dollar and the European indices.
Expectations are that the bank will keep its monetary policy unchanged. Previously, the ECB increased its pandemic emergency purchasing program by € 600 billion and also extended the duration until June 2021. The measure saved the Eurozone from a significant contraction and economic data support this argument. Of course, firm control over the coronavirus pandemic also contributed to this economic recovery.
The ECB is likely to be satisfied with its current measures, but it could highlight the worsening pandemic situation abroad. Traders hope their cautious approach, but the optimistic tone will spur a rally in euros and European stocks.
DJIA Index and Unemployment Claims in the United States
DJIA futures are likely to become more favorable if weekly unemployment benefit data shows a major improvement in the US job market. Weekly unemployment claims are expected to drop to 1.25 million versus the previous reading of 1.314 million. But skeptics will continue to beat the same pace: the United States still has over 1.25 million unemployment claims.
China reported exceptional GDP data
China has confirmed that it has everything it needs to combat coronavirus woes. The country’s GDP data surprised speculators and unbelievers. The Chinese GDP number reached 3.2% against the previous reading of -6.8%, while the forecast was 3.2%. This is a stellar performance for Chinese GDP and a remarkable return.
However, it is probably the path from here to be more difficult as tensions continue to increase between the United States and China, the two largest economies in the world. The reopening of the global economy should continue to provide a headwind to the Chinese economy.
Gold prices, US retail sales data and stimulus control
The price of gold is in a consolidation zone and operators need a new catalyst that could push the price of the precious metal out of this zone. There is nothing more important in terms of this catalyst than the upcoming US retail sales data. The anticipation is that US retail sales growth is likely to slow dramatically after a stellar performance in June. The obstacles on the path to reopening the American economy may have prevented consumers from spending.
In addition, there is enormous uncertainty over the United States’ labor protection program that will end this month. There is no clarity on what Congress will decide in terms of a new stimulus package. Americans aren’t sure if there will be as much protection as before in terms of stimulus checks.
However, the forecast for retail sales data in the U.S. today is 5% and last month’s reading was 12.4%. Something better than estimates can help the US dollar and the stock markets.
Twitter Hack: Elon Musk, Joe Biden, Barack Obama, Kim Kardashian
Twitter stocks are likely to face the heat today after suffering a massive hack yesterday. Twitter accounts of high-profile individuals were hacked simultaneously to spread the cryptocurrency scam yesterday. Barack Obama, Joe Biden, Elon Musk, Bill Gates are just some of the names whose accounts have been hacked.
The hack promoted a Bitcoin address claiming that any payment amount sent would be doubled and sent back. These types of hacks and scams are known in the world of cryptocurrencies and only tarnish Bitcoin’s reputation.
All the major cryptocurrencies are falling today. Bitcoin has been struggling for some time; this event worsened this fight.
Dow index and S & P500 index: market size
The size of the stock market shows a continuous improvement in the dynamics of the bull. 49% of the S&P 500 shares were traded above the 200-day moving average, a change of 4% from the previous day.
DJ 30 stocks continue to show more bullish support for the coronavirus stock market rally. 83% of the shares are traded above the 50-day moving average.
Today Dow Jones and S&P 500 Futures
Dow Jones futures are trading down 100 points. Traders are taking some profits off the table ahead of the heavy economic data day.
Yesterday, the Dow Jones futures price remained above the simple 200-day moving average over a daily time frame. As long as the price of the DJ30 index is higher than the 50, 100 and 200 day SMA, the rise is likely to continue.
The S&P 500 index, a better representation of the US stock market, also mainly trades critical moving averages such as the 50, 100 and 200 day SMA. The S&P 500 price action on the weekly chart also appears bullish, which confirms that traders are likely to continue to buy stocks.
Stock market rally
The S & P500 index is a few points away before erasing its losses since the beginning of the year. As of yesterday, it was only down 0.13% yoy. S&P 500 stocks pushed the index up 0.91% yesterday. Aside from the utility sector, the rest of the 11 sectors closed in positive territory.
The Dow Jones index gained 227 points yesterday and closed 0.85% higher. 25 advanced actions and 5 decreasing. Boeing
NASDAQ composite, a tech-savvy index, also advanced 0.11% yesterday.
Coronavirus: California reports record Covid-19 deaths
California broke yesterday’s records. He reported the largest number of coronavirus cases, over 11K cases were reported in California. The hospitalization rate due to Covid-19 also went beyond the roof. Unfortunately, California also reported record deaths.
NASCAR is home to the largest crowd
For some more encouraging news, NASCAR has hosted the largest crowd of all other sporting events since the coronavirus pandemic began. 30,000 NASCAR fans have been admitted. Although official attendance figures have not been released, there are expected to be nearly 10,000 NASCAR fans.
This shows some signs of normalcy and also signals that a large crowd gathering could start again.
The Trump administration wants Covid-19 data, bypassed by CDC
The Trump administration raised alarms among many experts when it said it needed the data directly. Hospitals are ordered to send Covid-19 data directly to the Trump administration and not to the Centers for Disease Control. The Trump administration has used the excuse that it wants to “simplify the process”, but there is concern that data transparency will be lost.