U.S. Indexes closed in the green on Tuesday, with the NASDAQ 100 outperforming in a tech-led rally. Crude prices slumped on US-Iran optimism, with a further move lower seen in late trade after Russian press RIA reported that the US and Iran are close to a ceasefire agreement that includes freedom of navigation through the Strait of Hormuz. The report also weighed on the Dollar and supported Treasuries and stocks into the closing bell. However, at the time of writing, there has been no confirmation of the report from other outlets. Elsewhere, sectors were predominantly firmer, with Technology leading the gains, while Energy slumped alongside weaker crude prices. Consumer Discretionary was also pressured by weak Dick’s (DKS) guidance, which weighed on peers including Nike (NKE), Lululemon (LULU) and On Holding (ONON). Treasury yields fell across the curve as oil prices tumbled, with the late RIA report adding to the move. The USD 69 billion 2-year auction had little lasting impact but was met with stronger demand than recent averages, albeit was not quite as strong as the July offering despite a lower yield on offer. US data was mixed, as Consumer Confidence was mixed, New Home sales plunged, and Richmond Fed was soft, but the outlook was more encouraging. The only Fed speaker was 2028 voter Collins, who reiterated familiar Fed rhetoric and how she is concerned about price stability of the mandate. In FX, the Yen and Dollar underperformed, while the Antipodeans led the way amid the upside in stocks. Notably, the Yen failed to benefit from the decline in US Treasury yields. Gold managed to recoup its earlier losses, while Silver still settled in the red. Consumer confidence in August fell to 89.4 from 90.2, and shy of the expected 90.3. The Present Situation Index lifted to 121.2 from 114.4, but the Expectations Index fell by 5.8 points to 68.2. Looking at the present situation, 18.9% of consumers said business conditions were “good” (prev. 19.1% in July) and 17.6% said they were “bad” (prev. 17.9%). Views of the labour market improved as 27.0% said jobs were “plentiful” (prev. 24.4%), while 19.5% said “hard to get” (prev. 21.7%). Looking ahead it was not so promising, consumers were less optimistic about future business conditions, more negative about the labour market outlook, and income prospects were less optimistic. Consumers’ write-in responses on factors affecting the economy were slightly more pessimistic in August. References to prices in general, and oil and gas specifically, remain elevated. Conference Board chief economist Dana Peterson wrote “Consumer appraisals of current business conditions were mildly positive. Perceptions of the current labour market improved, reversing three months of moderate decline. Ahead, expectations for household incomes moderated but remained optimistic overall.” New Home Sales tumbled 10.5% in July to 607k, beneath the expected 620k, while June was revised higher to 678k from 628k. New home supply was 9.6 months’ worth at current pace (vs. 8.5 months in June) and median sale price was USD 393,800, -0.9% Y/Y. Overall, Oxford Economics writes that the housing market is not headed for a downturn, but rising mortgage rates and weaker growth in real disposable income due to elevated inflation will keep any rebound out of sight. Elsewhere, Oil closed lower by 3.5% while Gold was flat.
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For anyone following my Platinum Service it made 60 points yesterday and is now ahead by 2400 points for August after closing July with a gain of 8031 points, after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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