Stocks rise as the upbeat momentum continues

Stocks rise as the upbeat momentum continues

Nike => The index rises above $110

EUR/AUD => The pair rises above 1.5250

Nasdaq => The index rises over 12000


Nike Q4 earnings preview

Nike is due to report Q4 earnings as the share price has dropped 35% since reaching a record high in November last year.

The sportswear retailer has struggled amid supply chain issues after COVID resurfaced in China and as the shutdown of operations in Russia and Ukraine. Q4 profits are expected to be $0.85 a share, while Wall Street forecasts a 1.2% decline in revenue to $12.2 billion. Any comments on the outlook will be watched carefully, given rising input prices and concerns over a slowdown in consumer spending.

Where next for the Nike share price?

Nike has been trending lower since hitting an all-time high at 178 in November.

The price trades below the 50 & 100 sma and found support at 103.00. The price rebounded but failed at the 50 sma and moved lower, testing 104.00. The double bottom, combined with the receding bullish bias on the MACD, keeps buyers hopeful of further upside. Buyers will need to break above the 50 sma resistance at 118.50, which would be significant as it would be the first time it trades meaningfully above the 50 sma since November.

It would take a move over 124.00 to create a higher high and expose the 100 sma at 126.00. On the flip side, a break below 103.50 could open the door to 93.30, the July 30 low.

EUR/AUD rises after G7 meeting & disappointing Chinese data

EUR/AUD rose 0.3% across last week, marking its third consecutive week of gains, despite signs of slowing economic growth in Europe.

Business activity, as measured by the PMI, fell by more than expected in June, raising fears of stagflation and recession. Concerns over energy security in Europe could pull on the euro as Russia slows supply. In the G7 meeting over the weekend, the group of leaders pledged further support to Ukraine as Russia ramps up attacks once again on Kyiv.

Today the pair is rising after Chinese industrial profits slump again despite easing COVID curbs, hurting demand for the Aussie. There is no eurozone data. However, the market will be watching a speech by ECB President Christine Lagarde closely.

Ger. IFO sentiment Actual: 92.3 (0.7) Previous: 93

Nasdaq rises as inflation fears ease

The Nasdaq rallied 7.5% last week, snapping a three-week losing run.

The US index rallied after commodity prices fell across the week, easing inflation fear and aggressive Fed hike fears. Bear market rallies are far from unusual, and despite the move higher the overall market trend remains bearish, for now. Looking ahead the month, quarter and half end will be in focus, which could mean some portfolio rebalancing.

US GDP data and PCE index, the Federal Reserve’s preferred inflation gauge will be the key data points this week. Today US durable goods data is expected to show

US durable goods orders May Actual: 0.1% (0.4%) Previous: 0.5%

Support can be found at 11700 (May 20) and 11085 (June 17 low).

Resistance for the pair can be seen at 12450 (May 12 high) and 12940(23 June)

 

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