The U.S market closed lower, about -0.52% to -5.22% as a weekly loss on monthly inflation data. The midcap stocks tumbled over -5%. The Russell 2000 Index has declined more than 7% versus a 1% gain for the large-cap Russell 1000 Index. According to the Fact set, 85% of the S&P 500 companies that had reported second-quarter results exceeded analysts’ earnings estimates. The inflation data appeared to remain in the spotlight during the week. The Consumer Price Index rose 5.4% from the same period last year.

The top European benchmark indexes fell over -1% on concerns that the increase in new daily Covid-19 cases could derail an economic recovery.  The investors are also concerned that the central bank might tighten monetary policy sooner than expected to quell inflation contraction.  France implemented new social restrictions to prevent the spread of the new variant.  

Despite the choppy week, the major APAC benchmark index closed higher for the week about 0.22% to 2.7%. The Hong Kong index HSI-50 outperformed. China’s second-quarter GDP meets the expectations. However, the GDP growth rose by 7.9% in the second quarter, down from 18.3% in the previous quarter.

Weekly market movement

Underlying_2021-07-19-Midcap Stocks Tumbled

Gold ended as flat for the week. The Oil price declined about -5% over the week OPEC+ agrees oil supply boost after UAE, Saudi reach compromise.

Sentiment Analysis

The figures showing the news and social media sentiment trend for the week.  The Overall global sentiment is turning in into neutral-negative mode from its mixed direction last week. The S&P 500 index shows a modest downtrend for the week. The tech index Nasdaq-100, and Industrial index Dow-30, and the midcap stock index Russel-2000 are dominated by the solid downtrend in sentiment direction.

The top benchmark indexes in the European market turn into the neutral mode. The trend line for the average sentiment is in a zigzag way over the week.  

The topmost APAC benchmark indexes are dominated by the neutral view with less volatility.

Sentiment Trend Chart

Sentiment Chart_2021-07-19-Midcap Stocks Tumbled

The following critical economic indicator and earnings reports will be the factors for determining this week’s market and can change the current sentiment. The factors include week include the PMI composite, Housing starts, the leading economic indicators, and the earnings report.  (https://www.investing.com/earnings-calendar/).

Sentiment Values

Sentiment Table_2021-07-19-Midcap Stocks Tumbled

Note: The sentiment indicator can be used as an additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

The below table is showing the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models are developed with the combination of technical, fundamental, quantitative techniques and primarily the news-based sentiment score as an additional overlay.

We tabulated here the random signals from InfoTrie’s Trading/Investment models.

Buy_Sell_2021-07-19-Midcap Stocks Tumbled

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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