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S&P 500; US Indexes Fundamental Forecast – July 28, 2016
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U.S. equity markets traded mixed on Wednesday ahead of the U.S. Federal Reserve monetary policy statement. The market was also influenced by earnings
U.S. equity markets traded mixed on Wednesday ahead of the U.S. Federal Reserve monetary policy statement. The market was also influenced by earnings reports. The major indices were supported by gains in shares of Apple, but hurt by declines in Coca-Cola.
The Dow Jones Industrial Average was struggling at the mid-session, weighed down by losses in Coca-Cola and McDonald’s, but underpinned by gains in Apple and Boeing.
A sharp decline in crude oil prices helped drive the energy sector lower, helping to weaken the S&P 500 Index. Consumer staples also fell more than 1 percent.
Traders showed little reaction to U.S. economic reports. Overall order for durable goods fell 4.0 percent in June. Non-defense capital goods orders excluding aircraft increased 0.2 percent last month. Pending home sales rose a far less-than expected 0.2 percent in June.
Some of the selling may have been related to position-squaring ahead of the Fed. A hawkish Fed will likely indicate a September or December rate hike. While not necessary bearish for stocks, any hints at a rate hike could give investors an excuse to book profits, especially with the stock indices so close to all-time highs.
On the other hand, stocks may find support and investors a reason to buy if the Fed talks up the strength of the economy.
FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.
Today’s economic releases:
| Cur. | Event | Actual | Forecast | Previous | |
| AUD | CPI (YoY) (Q2) | 1.0% | 1.1% | 1.3% | |
| AUD | CPI (QoQ) (Q2) | 0.4% | 0.4% | -0.2% | |
| AUD | Trimmed Mean CPI (QoQ) (Q2) | 0.5% | 0.4% | 0.2% | |
| EUR | GfK German Consumer Climate (Aug) | 10.0 | 9.9 | 10.1 | |
| GBP | GDP (QoQ) (Q2) | 0.4% | 0.4% | ||
| GBP | GDP (YoY) (Q2) | 2.0% | 2.0% | ||
| USD | Core Durable Goods Orders (MoM) (Jun) | 0.3% | -0.3% | ||
| USD | Durable Goods Orders (MoM) (Jun) | -1.1% | -2.3% | ||
| USD | Pending Home Sales (MoM) (Jun) | 1.4% | -3.7% | ||
| USD | Crude Oil Inventories | -2.257M | -2.342M | ||
| USD | Cushing Crude Oil Inventories | 0.189M | |||
| USD | FOMC Statement | ||||
| USD | Fed Interest Rate Decision | 0.50% | 0.50% |
Upcoming Economic Events that you should be monitoring:
Thursday, July 28, 2016
| Cur. | Event | Actual | Forecast | Previous | |
| GBP | Nationwide HPI (MoM) (Jul) | -0.2% | 0.2% | ||
| GBP | Nationwide HPI (YoY) (Jul) | 4.5% | 5.1% | ||
| EUR | German Unemployment Change (Jul) | -3K | -6K | ||
| EUR | German Unemployment Rate (Jul) | 6.1% | 6.1% | ||
| EUR | German CPI (MoM) (Jul) | 0.2% | 0.1% | ||
| USD | Goods Trade Balance (Jun) | -61.10B | -60.59B | ||
| USD | Initial Jobless Claims | 260K | 253K |
Government Bond Auctions
Date/Time Country Type
Jul 27 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund
Jul 28 11:10 Italy Holds bond auction
About the Author
James Hyerczykauthor
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.
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