London, UK, 2nd Oct 2021, ZEXPRWIRE – Chelsea Investments’ broker tells the investors about the best and most important news, trends, and analysis that will help them start their trading days with a winning strategy. According to him, investors should have proper research before investing in stocks.
The following are four pointers to keep in consideration while investing.
- Dow is expected to drop as it releases its weekly results.
- The jobs and retail sales picture is improving, which should lead the US Dollar higher.
- Wall Street is looking flat after a bright spot in the tough month of August.
- The September losses often come in the back month.
Chelsea Investment’s broker says that The Dow Jones Industrial Average rose on Friday, but it was not enough to prevent a slight decrease in the value of US stocks. It was seen that one day after another strong rally pushed these indices into positive territory for this week’s trading period and extended their winning streaks to 3-in-a row weeks; however U.S.-based futures markets seem more concerned about what will happen next month when historically troublesome February returns once again take center stage with its monthly volatility index at an already high reading following last years historic highs during December 2009/January 2010 which turned out pretty well.
The broker added that the Dow’s 506 point surge Thursday and Wednesday’s 338 point jump more than made up for Tuesday’s slight drop. The S&P 500 also saw back-to-back gains, while still down for the month; they were roughly 2% shy of their most recent record close in August 2018!
And as the Nasdaq advanced three straight sessions thanks to an advancing tech sector that had been on a tear recently but was temporarily paused by weakness from Big Tech names like Google parent Alphabet Inc (GOOGL – Free Report), Microsoft Corporation MSFT 28%, Amazon Web Services AWS Healthcare 3%. He said that this morning we’ll see how Brexit plays out as well.
Nike’s stock dropped 5% in the pre-market on Friday morning after reporting that global supply chain congestion is hurting their business more than they anticipated. According to him they also lowered their fiscal 2022 outlook, but Nike did beat analysts’ expectations with earnings of $1.55 per share beating estimates by two cents according to StreetAccount. However, revenue fell short as well compared to an estimate of $4 billion dollars instead coming out at just over 3 trillion which leads some investors to worry about what will happen going forward if these trends continue or get worse before anything can be done.
Chelsea Investment’s broker says that the news that retail sales posted a surprise gain in August despite fears of an impact from the recent Covid cases and supply chain issues was seen as positive for consumer confidence. The increase was 0.7% compared with estimates of a decline to 1%. Initial jobless claims also came out better than expected at 332 thousand, which is up slightly but still far below pandemic levels recorded just last week when they were down 312 thousand [from] previous weeks before being revised upwards by 10k each time until finally settling on 330.
He says that the Central bankers are set to hold their two-day September meeting next week. Many analysts expect them to decide on how best tapering should be conducted, but for now, it is still unclear what decision will ultimately come out of this weekend’s discussions.
As he said that the Wall Street has been down lately, but that doesn’t mean the job is done. The markets are still waiting for a bright spot in this tough month of trading and do not want to give up hope just yet.
U.S stock futures were flat Thursday after stronger-than-expected retail sales data, which sent the Dow Jones Industrial Average and S&P 500 on a second winning streak in eight sessions before finally giving way with losses that had been spreading throughout September as investors focused more heavily than usual this month during historic volatility across global markets including China’s crashing economy sending shockwaves through financial markets globally.
Chelsea Investment’s broker adds on saying that the S&P 500 has been on the decline for a few weeks now, and it may get worse before it gets better. By next week many expect that Janet Yellen will make her announcement about interest rates which could drastically shift investor sentiment in either direction; however, he says that she is not alone as Jerome Powell also speaks during this time period to address current economic developments facing America’s economy, like last year where stocks reached their lowest point -1%. But if we look back into history after World War II you’ll find an exception.
The Dow and Nasdaq both had a terrible month, but they were able to register some wins in the long run. For example, over 19% for S&P 500 versus 13%.
Chelsea Investment’s broker says that if history is any indication of what will happen, then we could see a rebound in stock prices before next week’s Federal Reserve Meeting. But investors are still skeptical after the recent volatility is driven by fears over China and consumer spending which was seen as slowing down all across both Europe and America
As he said that this week’s economic data could prove to be the catalyst needed to push stocks higher, but for now it is mostly sideways-trading action. Let us hope that next week will show more green than red by the time we reach Friday trading.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.