U.S. Stocks
Fundamental Analysis:
U.S. stocks closed higher on Wednesday, 20th July 2022, with the tech-dominated Nasdaq rising 1.6% driven by positive earnings signals, but people remained cautious about inflation and further interest rate hikes by the Federal Reserve.
Netflix surged 7.4% after the company forecast a return to subscriber growth in the third quarter, while reporting a lower-than-expected 1 million subscribers in the second quarter.
Other high-growth stocks also extended gains after Netflix announced its forecast. Apple, Amazon and Microsoft gained anywhere from 1%-4.2%. Tesla rose 2% hours after, reporting a rise in quarterly profit.
Total profits of S&P 500 component companies are expected to rise 5.9% year-over-year in the second quarter, down from 6.8% forecast at the beginning of the quarter.
Runaway inflation previously led the market to digest expectations of a 100-basis point rate hike at the Federal Reserve’s upcoming meeting next week, which subsequently declined after some policymakers signaled a 75-basis point hike.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow is concerned about the 31661-line today. If the Dow runs steadily above the 31661-line, it will pay attention to the suppression strength of the two positions of 32083 and 32455. If the Dow runs steadily below the 31661-line, it will pay attention to the support strength of the two positions of 31291 and 31000.
Hong Kong Stocks
Fundamental Analysis:
Hang Seng Index (HSI) opened 0.38% lower, Hang Seng TECH Index (HSTECH) fell 0.2%, Hang Seng China Enterprises Index (HSCEI) fell 0.29%.
On the market, most of the large technology stocks were lower, Tencent Holdings Limited (0700.HK) fell 1%, Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK), Baidu, Inc. (9888.HK), Xiaomi Corporation (1810.HK) were down, NetEase, Inc. (9999.HK) bucked the trend up about 3%.
Photovoltaic solar stocks strengthened significantly, banking stocks, e-cigarette concept stocks, home appliances stocks, dairy stocks, sporting goods stocks mostly rose.
Meanwhile, domestic insurance stocks fell in general, gas stocks, gold stocks, power stocks generally fell.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength of 22127 and 22785. If HK50 runs below the 21450-line, then pay attention to the support strength of 20467 and 19517.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 14352-line today. If the A50 runs stably below the 14352-line, it will pay attention to the support strength of the two positions of 13970 and 13544. If the A50 runs above the 14352-line, it will open up further upward space. At that time, pay attention to the two positions of 14695 and 14985.
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