by Don Vialoux, Timingthemarket.ca
Mr. Vialoux on BNN’s Market Call Tonight (August 25th)
Following are links:
http://www.bnn.ca/video/don-vialoux-s-market-outlook~1195684 Market Outlook
WALL STREET RAW RADIO – AUGUST 26, 2017 – WITH HOST, MARK LEIBOVIT, AND GUESTS: DON VIALOUX, KYLE DENNIS, JEFF BISHOP, SINCLAIR NOE AND HENRY WEINGARTEN
Economic News This Week
August Consumer Confidence to be released at 10:00 AM EDT on Tuesday is expected to slip to 120.0 from 121.1 in July.
August ADP Employment to be released at 8:15 AM EDT on Wednesday is expected to increase to 182,000 from 178,000 in July
Revised Second quarter GDP to be released at 8:30 AM EDT on Wednesday is expected to increase to 2.8% from 2.6%.
Weekly Jobless Claims to be released at 8:30 AM EDT on Thursday are expected to increase to 237,000 from 234,000 last week
July Personal Income to be released at 8:30 AM EDT on Thursday is expected to increase 0.4% versus no change in June. July Personal Spending is expected to increase 0.4% versus a gain of 0.1% in June.
Canadian Second Quarter Real GDP on a year-over-year basis is expected to grow at a 3.6% rate versus 3.7% in the first quarter. On a month over month basis, June GDP is expected to increase 0.1% versus a gain of 0.5% in May.
August Chicago PMI to be released at 9:45 AM EDT on Thursday is expected to slip to 58.0 from 58.9 in July.
August ISM to be released at 10:00 AM EDT on Friday is expected to increase to 56.6 from 56.3 in July.
July Construction Spending to be released at 10:00 AM EDT on Friday is expected to increase 0.6% versus a decline of 1.3% in June.
August Consumer Sentiment to be released at 10:00 AM EDT on Friday is expected to slip to 97.2 from 97.6 in July.
Earnings News This Week
Technical action by individual S&P 500 stocks was slightly bearish last week despite a slight gain by the S&P 500 Index. Notable among stocks breaking resistance were Utility stocks. Notable among stocks breaking support were Consumer Discretionary and Consumer Staple stocks. Number of stocks breaking resistance totaled 24 while number of stocks breaking support totaled 26 . Number of stocks trading in an uptrend dropped to 226 from 234, number of stocks trading in a neutral trend slipped to 68 from 70 and number of stocks in a downtrend increased to 206 from 196. The Up/Down ratio dropped last week to (226/206=) 1.10 from 1.19.
Medium term technical indicators (Percent of stocks trading above their 50 day moving average, Bullish Percent Index) mostly are neutral/overbought and trending down.
Short term technical indicators (short term momentum, above/below 20 day moving average) continued were mixed last week with a slight positive bias for most equity markets, commodities and sectors (exception: precious metals and precious metal stocks)
Seasonality on a wide variety of equity indices, commodities and sectors turned negative at the end of July.
Weakest month for equity markets is September. Recent technical indicators for North American equity indices suggest that history is repeating.
Economic news this week is expected to be mixed. Focus in the U.S. is on revised Second Quarter GDP on Wednesday and August ISM on Friday.
Earnings news this week will focus on fiscal third quarter results by the remainder of Canada’s biggest banks. Consensus is that all will report single digit operating gains (as did Royal and CIBC) last week. However, share prices of Royal and CIBC moved slightly lower (sell on news?) shortly after they reported results.