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Major U.S. indices are up today after a strong finish last week that saw both the S&P and Nasdaq rallying while the Dow closed just slightly lower, at -0.1% for the week. Nearly 50% of companies have already reported while many big names are still due to report this week, such as Google, Apple, and Mastercard. Several note-worthy economic reports due this week including core inflation, consumer confidence index, and monthly employment data by week’s end. Two other events of major significance this week are the latest round of China-U.S. trade talks as well the latest FOMC meeting taking place Tuesday-Wednesday. To start the week, gold and oil are slightly down while the dollar has edged higher. We remain on pace to retest 52 weeks high of $294 for the SPY and continue to trade above its 50-day moving average. Support for SPY sits $286. For reference, the SPY Seasonal Chart is shown below:
One of the biggest earnings reports of the week will release after the market close when Google parent-company Alphabet Inc. release their latest earnings report. Notable earnings released before market open today came from Spotify and Restaurants Brands. Both are trending down, though Spotify reported above expectations while Restaurants Brands reported below. Disney stock shot up on Friday and before market open today after their latest movie, “Avengers: Endgame,” topped domestic and worldwide box office records, coming in at $350 million domestic and $1.2 billion globally. Look for Apple, MasterCard, McDonald’s, and Pfizer reports tomorrow while Qualcomm, CVS, Metlife, and Kraft Heinz report on Wednesday.
Several substantial economic reports this week to monitor include monthly and weekly employment data on Thursday and Friday, consumer confidence and home, and manufacturing data on Wednesday. Consumer spending in March rose 0.9%, slightly above expectations. The most significant of the week will come on Wednesday after the Federal Open Market Committee releases their latest policy update and Chair Jerome Powell meets with the press. An interest rate hike is unlikely though Powell’s comments and general sentiment will be key going forward.
Globally, Asian markets closed to mixed results while European markets finished modestly higher. Over in Beijing, trade delegations from the U.S. and China are due to meet this week before negotiations relocate to D.C. next week. Several major issues are yet to be negotiated between the two sides and will likely need to take place before Presidents Trump and Xi step in. Eurozone GDP is due tomorrow while U.K. policy update will be released Thursday.
Using the “^GSPC” symbol to analyze the S&P 500, our 10-day prediction window shows positive signals. Today’s vector figure of +0.05% moves to +0.75% in five trading sessions. The predicted close for tomorrow is 2,941.05. Prediction data is uploaded after the market close at 6 pm, CST. Today’s data is based on market signals from the previous trading session.
On April 25th, our ActiveTrader service produced a bullish recommendation for Constellation Brands Inc (STZ). ActiveTrader is included in all paid Tradespoon membership plans and is designed for day trading.
Trade Breakdown
STZ entered its forecasted Strategy B Entry 1 price range $210.14 (± 1.90) in its first hour of trading and passed through its Target price $212.24 in the first hour of trading that day. The Stop Loss price was set at $208.04.
*Please note: Our featured stock is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader or MonthlyTrader recommendations. If you are interested in receiving Vlad’s personal picks, please click here.
Our featured stock for Tuesday is BB&T Corp. (BBT). BBT is showing a confident vector trend in our Stock Forecast Toolbox’s 10-day forecast. This stock is assigned a Model Grade of (B) indicating it ranks in the top 25th percentile for accuracy for predicted support and resistance, relative to our entire data universe.
The stock is trading at $51.65 at the time of publication, up 2.00% from the open with a +0.63% vector figure.
Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
West Texas Intermediate for June delivery (CLM9) is priced at $63.55 per barrel, up 0.39% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $13.23 at the time of publication, up 1.00% from the open. Vector figures show +0.29% today, which turns +2.31% in five trading sessions. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for June gold (GCM9) is down 0.57% at $1,281.30 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mostly mixed signals. The gold proxy is trading at $120.74, down 1.00% at the time of publication. Vector signals show +0.03% for today. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is up 1.48% at 2.54% at the time of publication. The yield on the 30-year Treasury note is up 1.37% at 2.96% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see positive signals in our 10-day prediction window. Today’s vector of +0.04% moves to +0.89% in three sessions. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is up 0.94% at $12.85 at the time of publication, and our 10-day prediction window shows mixed signals. The predicted close for tomorrow is $12.55 with a vector of -3.16%. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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