Stocks SP 500

S&P 500; US Indexes Fundamental Daily Forecast – Supported by Optimism Over Brexit Negotiations

Wall Street closed mixed on Friday, but U.S. investors are getting a boost from higher prices in Asia and Europe. Asia stocks rose as investors prepared for the start of Brexit negotiations between the U.K. and the European Union. Traders were also watching the events in the U.K., following reports of another terrorist attack.

NASDAQ-100 Index
Daily September NASDAQ-100 Index

Asian investors were also reacting to the latest economic data from Japan. According to the Japanese government, exports from Japan rose 14.9 percent on year compared to the 16.1 percent rise projected by a Reuter’s poll. Japan’s trade balance, however, registered a deficit of 203.4 billion yen ($1.83 billion), compared to the 76 billion yen surplus expected.

S&P 500 Index
Daily September S&P 500 Index

The markets were also trading higher in Europe as investors shifted their attention to political events across Europe. U.K. Brexit Secretary David Davis goes to Brussels to begin negotiations. He is expected to help lay out the plans for the structure of the negotiations and to build trust.

In France, French President Emmanuel Macron strengthened his political position over the weekend, after securing a majority in the country’s parliamentary election on Sunday.

Dow Jones Industrial Average
Daily September Dow Jones Industrial Average

In the U.S., investors are looking for carryover buying from Friday in reaction to the news that Amazon was buying Whole Foods for $13.7 billion, or $42 a share. The grocery sector was hit hard by the news although there are rumors that Amazon may be seeking another purchase.

Today, investors will be listening to a speech from FOMC Member William Dudley for clues as to whether he supports the Fed’s latest monetary policy decisions. Investors want to know if he sides with the Fed in calling for an additional rate hike later this year.

Stocks should rally if Dudley comes across as dovish since stock investors prefer a low interest rate environment.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.