Schaeffer

[ad_1]

The S&P 500 Index and Nasdaq Composite are eyeing four-week win streaks

It was a strong week for the major indexes, as economic data throughout the week eased inflation concerns. The beginning of the week started out slow, with the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) finishing with three- and four-day losing streaks, respectively, on Tuesday. By Friday, however, both indexes were on track for their fourth-straight weekly wins. The Dow Jones Industrial Average (DJI) is also eyeing weekly gain, along with its fifth daily win in the last six. Alternative energy and electric vehicle (EV) stocks received a boost this week as well due to the $430 billion Inflation Reduction Act

Digging into this week’s inflation data, the consumer price index (CPI) for July, posted Wednesday, saw a narrower-than-expected year-over-year 8.5% rise — down from June’s 41-year high of 9.1%. Plus, the core CPI rose 0.3%, down from the previous month’s 0.5% pop. More encouraging data rolled in on Thursday, with the producer price index (PPI) dropping 0.5% in July, compared to estimates of a 0.2% rise. Consumer sentiment rose as well, according to Friday’s University of Michigan consumer index preliminary August reading, which topped estimates at 55.1. 

Notable Earnings Reports

Earnings season was still in full swing this week, with several big-name companies announcing results. Chip stocks Nvidia (NVDA) and Micron Technology (MU) — which are set to release earnings within the next couple months — pushed the Nasdaq lower at the beginning of the week, after both companies cut their quarterly revenue forecasts due to slowing demand. Walt Disney (DIS) was another market mover later in the week, staging an impressive bounce after its strong fiscal third-quarter report. Just a few of the many other names reporting earnings this week were Signet Jewelers (SIG), Coinbase Global (COIN), Wendy’s (WEN), Trade Desk (TTD), Bumble (BMBL), and Poshmark (POSH). 

More Stocks Making Headlines

First Solar (FSLR) was one of the many alternative energy stocks getting a boost from the climate change bill, receiving two analyst upgrades earlier this week. EV-linked stock Blink Charging (BLNK) was pushed higher due to the bill as well, ahead of the company’s earnings report. Meanwhile, EV name Nikola (NKLA) announced a new CEO, while Japan’s SoftBank announced its plans to sell some or all of its stake in SoFi Technologies (NASDAQ:SOFI).

Busy Month Continues Next Week

Next week will be a busy one as well, with plenty of earnings reports and economic data slated for release, particularly retail sales and manufacturing data. Meanwhile, check out what Schaeffer’s Senior Quantitative Analyst Rocky White has to say about the recent spike in cash holdings

[ad_2]

Image and article originally from www.schaeffersresearch.com. Read the original article here.

By admin