Dow Jones trades close to all-time highs ahead of the Jackson Hole Symposium. Best Buy reported better earnings this week, while HP prepares to reveal the quarterly earnings today.
The bullish momentum in equity markets continues unabated. Both the S&P 500 and the Nasdaq 100 indices closed yesterday at record-high levels, while the Dow Jones outlook remains bullish, too.
Today marks the start of the Jackson Hole Symposium – the main event of the trading week. Despite being a virtual event due to the COVID-19 pandemic, the market is interested in what the Fed’s Chair Jerome Powell has to say in his speech scheduled on Friday. The focus is on tapering the asset purchases and the impact the Delta variant has on the U.S. economy.
In the meantime, investors’ euphoria continues, as they still buy stocks on every dip. The move higher in stocks triggered renewed weakness in the U.S. dollar and the Japanese yen. In other words, a full risk-on movement is undergoing in financial markets – kind of typical for summer trading. But, August soon comes to an end.
European markets are also bullish, fueled by the American investors’ exuberance. The Dax index trades close to 15,800, the CAC 40 index in France holds above 6,600 points, while the FTSE 100 trades steady above 7,150.
Commodities are mixed today. On the one hand, oil rallied from the recent lows and continues to pressure the $70 area, fueled by the risk-on momentum. On the other hand, gold was unable to hold above $1,800 and now trades close to the $1,780 area.
Economic Events to Consider Today
As mentioned earlier, the Jackson Hole Symposium starts today and so investors’ attention is on any news coming from the virtual event. Until then, the U.S. preliminary GDP is expected at 6.7%. European traders will want to keep an eye on the ECB Monetary Policy Meeting Accounts that will likely have an impact on the euro pairs.
Today’s Markets to Watch
Today’s markets to watch are Dow Jones, Best Buy, and HP.
While Dow Jones did not make a new all-time high this week, it nears one. Only a break below 34,000 would spoil the bulls party. Without such a correction, the bias remains bullish.
Best Buy reported better than expected earnings this week. The technical picture is bullish as well, as the daily chart shows an ascending triangle pattern. The measured move, seen in orange above, points to $150. On the flip side, a decline below $110 would invalidate the bullish pattern.
HP releases its quarterly earnings today. The stock price is bullish while above the rising trendline and now struggles to break above the pivotal $30 area. On a daily close above, investors will try to push it to new highs.
Winners and Losers
Equities remain strong while gold is weak. The U.S. dollar trades with an offered tone ahead of the Jackson Hole Symposium.