Earnings Continue to Weigh on Stocks

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Tech earnings continue to put pressure on stocks, despite lower treasury yields. GDP comes in under Atlanta Fed GDP estimates, and jobless claims show a slight uptick.

Chris Chavez, Market Strategist 

TRANSCRIPT

Good afternoon traders. It’s Chris Chavez with Blue Line Futures and it’s your daily midday market minute earnings season is continue to weigh on stock indices. But before we get to it, if you’re watching this video like it subscribe if you’re on our website. There’s also a link to direct you to YouTube and you can subscribe that way. We’d love for you to follow us.

We’d love for you to help us build our following. So we’re continuing to get more earnings matter reported yesterday after the bell. And just like Google, they beat. But guidance was a little bit softer. Markets didn’t like that. So Matt has taken it on the chin. You know, tech sector, NASDAQ 100 is really selling here today, you know, down about a percent in half or so, finding a little bit of support here at the low.

So it’s encouraging to see. We did also get some economic data here this morning. We got GDP. We also got trade balance numbers, jobless claims as well. Looking at GDP, it came in above consensus estimates, 4.9% versus 4.3%. So really seeing that consumer strength, however, it did come in under Atlanta Fed GDP, now estimates of 5.4%. So I think the market had really already priced in that we were going to see such a strong consumer continue to see consumer spending.

But it’s important to know that this GDP report, this is a lagging report. This is for Q3. This is not forward looking. Right. So when we’re looking at GDP, I think of a lot of the move in the Treasury market has been baked in to seeing a resilient consumer and seeing GDP come in below Atlanta Fed GDP now estimates is definitely a little bit encouraging to see.

We got jobless claims. They also came in above estimates, 210,000 versus 208,000 expected. So a slight uptick there. Also, the trade balance, the deficit month over month grew a little bit. So definitely added a little bit or put a little bit more pressure on the GDP numbers that we got. We’ll continue to get more data. We’re going to continue to get more earnings and we’re going to have to pay attention to all of that as earnings season right now is really putting the most pressure on stock indices because yields are off of their highs.

So looking at major support levels here for the S&P, major four star support is going to be 4126 to 41, 45 and a quarter major four star support for the Nasdaq. If we continue to see selling pressure, 3931 to 39, 68 major four star support for crude is going to be 81, 82, 8208 and four star resistance for gold is going to be 2009 and 2/10 to 2012 and 7/10.

Again, gold’s showing a lot of resilience and strength despite higher yields, even though yields are off of their highs. The precious metals complex today just about unchanged. So we’re going to want to keep an eye on these very major resistance and support levels here. And if you have any questions, reach out to our trade desk. We’re here for you.

Remember, futures trading involves substantial risk of loss is not suitable for all investors.

END TRANSCRIPT


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500


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