Summary:
- US500 remains near breakout level
- US housing data comes in below forecast
- Morgan Stanley delivers strong trading update
US indices have been pretty quiet today with the US500 continuing to oscillate around its prior breakout level of 2808. The outlook for the market appears to remain in favour of the bulls with Tuesday’s session seeing some strong gains as price breached and ended the day above prior resistance around 2808. The price action is a little choppy but higher highs and higher lows can be observed on shorter time frames and unless there’s a push below 2789 then the path of least resistance seem to favour the bulls.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
The US500 continues to look constructive and as long as the lows around 2790 remain intact then higher prices could lie ahead. Source: xStation
The main event for stocks this afternoon could be the 2nd day of Fed chair Powell’s testimony with the only data out of note the latest housing figures which were mildly disappointing. Both the number of housing permits and housing starts came in below the consensus forecasts with prints of 1.27M (1.33M exp) and 1.17M (1.32M exp).
The change in both housing permits issued and new housing starts remains close to zero with both these metrics little changed in recent years. Source: XTB Macrobond
Earnings season is now in full swing in the US with Morgan Stanley the latest big bank to deliver their results. There’s a lot to like about the latest trading update from Morgan Stanley with profits surging higher on trading and investment banking gains. The group’s EPS for the quarter was $1.30 - well above the $0.87 forecast - while revenues also beat, coming in at $10.6B vs calls for a reading of $10.1B. Institutional securities, home to Morgan Stanley’s trading and investment banking business enjoyed a 19% rise in revenue to $5.7B. Shares are called to open around 3% higher in the stock
Morgan Stanley is expected to open higher this afternoon, but the stock remains below its 200 day SMA. Source: xStation
Disclaimer
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appPast performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
