. Daily Index Analysis - Wall Street and Falling Treasury Yields: S&P 500 Prospects

Daily Index Analysis – Wall Street and Falling Treasury Yields: S&P 500 Prospects

Daily Index Analysis – Wall Street and Falling Treasury Yields: S&P 500 Prospects

24 Oct 2023

Introduction:

In the global indices market, Asian stock markets are showing a varied performance due to the uncertainty in U.S. stocks linked to fluctuations in U.S. Treasury bond yields. Notable movements include the Shanghai composite’s 0.96% rise, while the Hang Seng Index in Hong Kong declined by 1.05%. In Europe, shares are edging higher, boosted by positive earnings and the mining sector. Meanwhile, U.S. stocks experienced a mixed outcome, with a focus on the retreat in benchmark U.S. Treasury yields and anticipation of forthcoming high-impact earnings reports.

Market In Focus for today – S&P 500

Wall Street concluded with a mixed performance as Treasury yields eased, shifting the spotlight towards earnings. The S&P 500 index closed marginally lower.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4258.61 | Positive Crossover | Bullish
  • MA 20: 4304.98 | Negative Crossover | Bearish
  • MA 50: 4337.35 | Negative Crossover | Bearish

Simple:

  • MA 5: 4250.72 | Positive Crossover | Bullish
  • MA 20: 4325.35| Negative Crossover | Bearish
  • MA 50: 4332.55 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.56 | Selling Zone| Bearish

Stochastic Oscillator: 25.35 | Sell Zone | Positive

Resistance And Support Levels:

  • R1: 4338.66 | R2: 4418.45
  • S1: 4251.60| S2: 4164.55

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 4231.53 | Take Profit: 4164.14| Stop Loss: 4278.06.

Elsewhere in the Indices Market

Asian stock markets display a mixed performance following uncertainty in U.S. stocks due to fluctuations in U.S. Treasury bond yields.

The Shanghai composite is up at 0.96%. Overall, the Singapore MSCI up 0.81% to 275.88. Over in Hong Kong, the Hang Seng Index down 1.05% to 16,991.53. In Japan, the Nikkei 225 up 0.20% to 31,062.35, while the Topix index was up 0.09% to 2,240.73. South Korea’s Kospi up 1.12% to 2,383.51. Australia S&P/ASX 200 up 0.19% to, 6,856.90.

European shares edge higher on boost from upbeat earnings, miner.

The DAX futures contract in Germany traded 0.27 higher, CAC 40 futures in France up 0.63% to 6,893.49 and the UK 100 futures contract in the U.K. down 0.07% to 7,369.94.

Wall St ends mixed as Treasury yields ease, focus turns to earnings.

U.S. stocks displayed a mixed performance on Monday, with benchmark U.S. Treasury yields retracting from 5%. Investors redirected their attention to the upcoming high-profile earnings reports and closely monitored economic data scheduled for this week.

Indexes: Dow down 0.58%, S&P 500- down 0.17%, Nasdaq up 0.27%.

Corporate News:

Netflix Inc (NFLX) up 1.47% at 406.84, Tesla Inc. (TSLA) up 0.42% at 212.08, Walmart Inc. (WMT) up 1.42% at 161.01. Goldman Sachs Group Inc (GS) down 0.28% at 299.22, Morgan Stanley (MS) down 1.96% at 71.70.

Key Economic Events & Data Release Today:

(GBP) Claimant Count Change (Sep) Actual 20.4K, Forecast 2.3K, Previous 0.9K at 11:30.

(EUR) German Manufacturing PMI (Oct) Actual 40.7, Forecast 40.0, Previous 39.6 at 13:00.

(EUR) ECB President Lagarde Speaks at 18:00.

(CAD) New Housing Price Index (MoM) (Sep) Forecast 0.1%, Previous 0.1% at 18:00.

(USD) Service PMI (Oct) Forecast 49.8, Previous 50.1 at 19:15.