Pre-opening Comments for Wednesday July 13^th

U.S. equity index futures were higher this morning. S&P 500 futures down 55 points in pre-opening trade.

U.S. equity index futures moved lower following release of the U.S. June Consumer Price Index at 8:30 AM EDT. Consensus was an increase of 1.1% versus a gain of 1.0% in May. Actual was an increase of 1.3%. On a year-over-year basis, consensus was an increase of 8.8% versus a gain of 8.6% in May. Actual was an increase of 9.1%. Excluding food and energy, consensus was an increase of 0.5% versus a gain of 0.6% in May. Actual was an increase of 0.7%. On a year-over-year basis excluding food and energy, consensus was an increase of 5.8% versus a gain of 5.0% in May. Actual was a gain of 5.9%.

The Bank of Canada updates its monetary policy at 10:00 AM EDT. Consensus is that the Central Bank’s lending rate to Canada’s largest banks will increase from 1.50% to 2.25%.

Delta Airlines slipped $1.08 to $30.01 after reporting lower than consensus second quarter earnings.

Fastenal dropped $3.05 to $46.94 after reporting lower than consensus second quarter revenues.

Hasbro dropped $1.04 to $80.12 after KeyBanc Capital downgraded the stock from Overweight to sector weight.

 

EquityClock’s Daily Comment

Headline reads “As we wait for the latest read of consumer prices, gauges of inflation expectations continue to decline as commodity prices slide”. Following is a link:

http://www.equityclock.com/2022/07/12/stock-market-outlook-for-july-13-2022/

Technical Notes for yesterday

Visa $V a Dow Jones Industrial Average stock moved above $207.09 setting an intermediate uptrend.

Boeing $BA a Dow Jones Industrial Average stock moved above $39.01 extending an intermediate uptrend. Goldman Sachs upgraded the stock to Buy. Also, China re-approved the MAX aircraft.

Kraft Heinz $KHC an S&P 100 stock moved above $39.01 extending an intermediate uptrend.

CVS Health $CVS an S&P 100 stock moved above $95.95 extending an intermediate uptrend.

Gildan Activewear $GIL.TO a TSX 60 stock moved below $34.82 extending an intermediate downtrend.

Lithium ETN $LIT moved below intermediate support at $66.10.

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for July 12^th 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for July 12^th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for July 12^th 2021

Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

 

Editor’s Note: General weakness yesterday is related to exceptional strength in the U.S. Dollar Index and its related Exchange Traded Note: UUP

 

S&P 500 Momentum Barometers

The intermediate term Barometer dropped 5.20 to 21.20 yesterday. It remains Oversold.

The long term Barometer slipped 1.40 to 21.00 yesterday. It remains Oversold.

 

TSX Momentum Barometers

The intermediate term Barometer added 0.42 to 21.01 yesterday. It remains Oversold. Trend is up.

The long term Barometer dropped 1.68 to 22.27 yesterday. It remains Oversold.

 

Disclaimer: Seasonality and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.

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