Stocks Declined Modestly. The Sentiment Remains Mixed!

Stocks declined modestly, but the S&P 500, the Nasdaq Composite, and the S&P MidCap index reached record highs before losing their gains. As of Friday, 86% of the S&P 500 companies that had reported first-quarter results exceeded analysts’ earnings estimates, according to FactSet( refer https://insight.factset.com/sp-500-earnings-season-update-april-30-2021)

Earnings_Factset_2021-05-02-Stocks Declined Modestly

The 10-year U.S. Treasury bond yield climbed as high as 1.68% on Thursday before closing the week around 1.63%. The U.S GDP is nearly back to its pre-pandemic size after recording its third consecutive quarter of robust growth.  The first-quarter GDP grew 6.4% annually, up from 4.3% in the fourth quarter.

The European shares performed a mixed movement for the week. The top benchmark Indexes DAX-30 and FTSE-MIB declined about -1% as a weekly loss. On the other side, The Indexes CAC-40 and FTSE-100 gain modestly. Eurozone government bonds yields slipped in early trading on Friday, stabilising after a sharp sell-off in the previous session, while investors waited for regional GDP and inflation data.

Most APAC benchmark Indexes ended with a negative mark of about -0.5 % to -1.39%. Chinese shares recorded a weekly loss as the government’s continued crackdown on technology firms’ dampened buying sentiment. The Japanese shares were closed lower on  Friday, as some firms’ worse-than-expected earnings releases exerted downward pressure on markets. In contrast, India’s Nifty-50 Index closed higher, about 2% as a weekly gain.

Weekly market movement

Underlying_2021-05-02-Stocks Declined Modestly

Gold declined modestly, about -0.47%. The U.S Oil climbed about 2% as a weekly gain. However, the Oil prices slipped on Friday, taking a breather after touching their highest in six weeks. Economic recovery and bullish summer fuel demand outlook outweighed concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic. The Price of Bitcoin climbed about 15% as a weekly gain. (https://coinmarketcap.com/currencies/bitcoin/news/)

Sentiment Analysis

The below figures shows the news and social media sentiment trend for the week. The global news sentiment trend remains mixed for the week—the top benchmark Indexes dominated by neutral mode in sentiment trend. The U.S index Dow-30 is showing a downtrend in sentiment direction. On the other hand, The midcap index Russel-2000 showing a modest uptrend in the sentiment direction.  The Indexes S&P-500 and Nasdaq-100 remain neutral.

The top four European Indexes turned into the neutral mode in sentiment trend. The London Index FTSE-100 is likely to be turned in to an optimistic view.

The sentiment trend for the most primary APAC benchmark indexes remains mixed. The Japan Index Nikkei-225 is showing a strong downtrend in sentiment direction. On the other side, The Indexes HIS-50 AND SSE-50 and Nifty-50 show a strong uptrend in sentiment direction for the week. The rest remains neutral.

Sentiment Trend Chart

Sentiment Chart_2021-05-02-Stocks Declined Modestly

The following critical economic data refer to https://www.fxstreet.com/economic-calendar, including construction spending, the PMI index, and Domestic Auto Sales may change the market’s direction in the coming days.

Sentiment Values

Sentiment Table_2021-05-02-Stocks Declined Modestly

Note: The sentiment scores applied as an additional overlay to your existing models to further improve performance.

Buy & Sell Signals

The below table shows the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models developed using technical, fundamental, quantitative techniques and the news-based sentiment score as an additional overlay.

I have tabulated the random signals from several InfoTrie’s Trading/Investment models.

Buy_Sell_2021-05-02-Stocks Declined Modestly

The news sentiment score provides a significant improvement, significant “Alpha” compared to the traditional investment/trading models.

 For more details on the analysis, accessing complete tear sheets or white paper for the models, subscription details for News Sentiment data and other consulting works, please contact us with the information below.

InfoTrie Financial Solutions Pte. Ltd.
Alternative Data, Sentiment Analysis, Financial I.T. and A.I. Consulting

Read our previous blog posts. Want to access our data? Try our API or access our FinSentS platform

contact@infotrie.com
Suresh Kumar Ramani +65 9337 6035
Frederic GEORJON +33 (0)6 1304 0600


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