WHAT HAPPENED THIS WEEK?
Dow industrials, S&P 500 rally mightily on Friday but fail to avoid longest weekly losing streak in over a yearU.S.
Stocks finished a weekly trading stretch, marked by wild swings, on a higher note, shrugging off uncertainty about additional coronavirus stimulus from Washington, rising cases of coronavirus and a stall-out in some components of economic data.
Investors still turned to the perceived safety of technology stocks, helping the Nasdaq Composite COMP, +2.26% avoid a fourth consecutive weekly slide, but the S&P 500 and the Dow Jones Industrial Average booked their fourth weekly drop, matching their longest such losing skid since Aug. 23, 2019, FactSet data show.
The Dow DJIA, +1.33% finished the session up by about 360 points, or 1.3%, at about 27,174, while the S&P 500 closed 1.6% higher at around 3,298, on a preliminary basis. For the week, the Dow booked a 1.8% decline while the S&P 500 SPX, +1.59% lost 0.6% over the five-session stretch.
The Nasdaq Composite, however, closed up 2.3% on the session to reach 10,913, on a preliminary basis. That helped the tech-laden benchmark record a 1.1% weekly gain erasing a fall of that magnitude, from which it started Friday trade. Market Watch
WHAT TECHNICAL ANALYSIS IS SAYING?
- Before you jump into the bandwagon; be cautious and know that there are other factors to watch – global economy is still fragile and millions have lost their job.
- Today – Mitsubishi Motors to cut 500-600 jobs to reduce costs – The auto company is expected to post a net loss of 360 billion yen in the financial year to March 2021, hurt by a plunge in sales due in part to the coronavirus pandemic.
- Also the market drivers today is all the tech – be cautious
- We are still optimistic for Gold in the long term
WHAT ABOUT PHILIPPINES?
Banks swarm BSP’s maiden bond offering – The Bangko Sentral ng Pilipinas’ much-awaited bond issuance is here, and market players did not disappoint. The central bank launched Friday its first-ever offering of BSP bills, which mature in one month. There were early signs of solid market demand, as some investors held back placements on Treasury notes in anticipation of the BSP’s own papers. In the end, the BSP awarded the full P20 billion auction size, with tenders amounting to P43.36 billion. Rates averaged at 1.8355%. The bonds will mature on October 20.
We see some optimism in the market – but we also believe the market will be cautious till there are signs of increase inflation & consumer spending.
- PSEI is still struggling to get by-pass to MA200
- The trend is still down and remains cautious
- We continue only to pay attention to fundamentally strong companies which is thematic approach & good future earnings
- Be cautious and know that the market is still fragile
FINWAZE TEAM – MANG MATEO – JOIN OUR FACEBOOK