U.S. Stocks
Fundamental Analysis:
The S&P 500 index of U.S. stocks closed lower on Wednesday, 26th October 2022, ending a three-day rally, as gloomy corporate earnings estimates fueled fears of a global economic slowdown.
The S&P 500 and Nasdaq both closed lower, with market-leading technology and tech-related stocks causing a drag after Microsoft and Alphabet reported results.
The blue-chip Dow barely edged higher. Microsoft and Alphabet fell hard, down 7.7% and 9.1%, respectively.
These discouraging earnings reports have heightened fears of an impending global recession, a sentiment that has also hit other prominent large-cap stocks.
New home sales plunged in September, mortgage rates reached their highest level in more than 20 years, and more and more data point to softening economic conditions.
Five of the S&P 500’s 11 major sectors closed lower, with communications services stocks and technology stocks posting the biggest percentage losses.
The third quarter earnings season has reached its climax, with 170 S&P 500 component companies having released their earnings reports.
According to Lufthansa data, 75% of them exceeded expectations, although expectations for corporate performance were already low.
According to Lufthansa data, overall earnings growth for S&P 500 component companies is expected to be 2.3%, compared to the 4.5% growth forecast at the beginning of the month.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 31590-line today. If the Dow runs steadily above the 31590-line, it will pay attention to the suppression strength of the 32038 and 32363 positions. If the Dow runs steadily below the 31590-line, it will pay attention to the support strength of the 31300 and 31000 positions.
Hong Kong Stocks
Fundamental Analysis:
The three major indices of Hong Kong stocks opened collectively higher, the Hang Seng Index (HSI) rose 2.63%, the Hang Seng China Enterprises Index (HSCEI) rose 2.93%, the Hang Seng TECH Index (HSTECH) rose 4.31%.
On the market, overnight, popular Chinese stocks rose sharply, driving large technology stocks opened sharply higher, JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK), Bilibili Inc. (9626.HK) opened 8% higher, while Meituan (3690.HK) opened 6% higher.
Education stocks strengthened, dongfangzhenxuan brought over 2.2 billion yuan in 3 months, New Oriental Education & Technology Group Inc. (9901.HK) opened 15% higher, Koolearn Technology Holding Limited (1797.HK) opened 8% higher.
E-cigarette concept stocks, CRO sector, auto stocks, photovoltaic stocks and other stocks continued to rise.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 15995-line today. If HK50 can run stably above the 15995-line, then focus on the suppression strength of the 16964 and 17535 positions. If the HK50 runs below the 15995-line, then pay attention to the support strength of the 15136 and 14309 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 11955-line today. If the A50 runs steadily below the 11955-line, pay attention to the support strength of the two positions of 11665 and 11447. If the A50 runs above the 11955-line, it will open up further upward space. At that time, pay attention to the two positions of 12135 and 12336.
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