The Stock Market Will Try to Rise on July 24 Despite Tech Headwinds

  • S&P 500 Futures -9 points
  • US 10-year 2.05%
  • VIX 12.92
  • Dollar Index 97.60
  • Oil $56.82

International Markets

  • Shanghai +0.8%
  • HSI +0.2%
  • KOSPI -0.91%
  • Nikkei +0.41%
  • DAX +0.37%
  • FTSE -0.77

S&P 500 (SPY)

The S&P 500 futures are giving back some of the gains from yesterday. But the good news is the index is holding the break out at the downtrend. So as long as that continues to hold, the break out remains intact.

SPX futures

SPX futures

Technology stocks are likely to be weighed down today after the DOJ opened a probe into companies such as Amazon, Alphabet, Facebook, and Apple. I’m not sure how Apple fits into this. The others do appear more apparent.

Amazon (AMZNWealth Strength IndexAAPL is Extremely Up and trending Up)

Amazon’s chart is beginning to look more like a descending triangle. The support level comes at $1965. A break below that price sends AMZNWealth Strength IndexAAPL is Extremely Up and trending Up lower towards $1903.

Amazon, amzn

Amazon, amzn

AT&T (T)

AT&T reported what appears to be some pretty bad trends in the media business. There “premium TV” video connections, aka DirecTV, lost a stunning 778,000 subscribers in the quarter. While the over-the-top AKA DirecTV Now lost 168,000. WOW.  Meanwhile, HBO’s revenue climbed this quarter, whether it lasts or not is the question, as I’m sure some if will work its way out with the completion of the Game of Thrones. But overall, Warner Media fell revenue to $8.35 billion from $8.379 billion last quarter and is down from $9.2 billion since the fourth quarter.

For now, the stock is holding the uptrend. We’ll see if that last all day.

AT&T, T

AT&T, T

Visa (V)

Visa reported another solid quarter and got a bunch of price target increases. It is a business that ideally situated at this point, and likely doesn’t change any time in soon. The stock has been consolidating around $182, and a break out sends the stock up to $190.

Visa, v

Visa, v

Netflix (NFLXWealth Strength IndexAAPL is Extremely Up and trending Up)

Netflix launched a mobile subscription service in India. It is likely a good move. The stock has been falling every day since results. The long-term uptrend comes into play $300.

netflix, nflx

netflix, nflx

Intel (INTCWealth Strength IndexAAPL is Extremely Up and trending Up)

Texas Instrument is rising to a new all-time high today following better quarterly results. It could be a positive read-through to Intel. I noted yesterday Intel could be on its way to $57. Intel’s Outlook May Help Boost Shares

intel, intc, amazon, amzn, stock

intel, intc, amazon, amzn, stock

Have a great day.

-Mike

This article first appeared on Mott Capital.

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