U.S stocks Rallied! The Consumer Spending Improves?

US:

U.S stocks rallied. The leading benchmark indexes gained more than 6% in a week as consumer expenditure and inflation statistics in the United States improved. Both the S&P 500 Index and the Nasdaq Composite Index gained ground, halting a seven-week losing run.

Consumer spending in the United States increased to 13924.80 USD Billion in the first quarter of 2022 from 13818.40 USD Billion in the fourth quarter of 2021. The Fed’s preferred measure of inflation fell from March to April, and market-based inflation expectations have fallen from their top, completely reversing this year’s increase.

However, according to data provided by Fact Set for the most recent earnings season, which just came to a close, companies included in the S&P 500 index posted an average profit rise of 9 % when compared to the same quarter one year earlier. Because of this result, the rate of growth slowed to its lowest point since the fourth quarter of the year 2020. 

Consumer spending chart:

Consumer spending -05-30-2022-Consumer spending -2022-05-30-U.S stocks Rallied

Europe:

The European market gained ground as investors were more optimistic that inflation may be reaching its zenith. Central banks sent signals indicating that future hikes in interest rates are likely to be modest. 

The CAC 40 Index in France rose 3.67 %. The DAX Index in Germany rose 3.44 %. The FTSE MIB Index in Italy rose 2.25 %. The FTSE 100 Index in the United Kingdom increased by 2.65%.

APAC:

The APAC benchmark indexes remain mixed in their directions. The indexes, Nifty50, AX-200, and Nikkei 225 were closed higher modestly. On the other hand, the indexes,  Kospi-100, Hang Seng, and Shanghai composite index were declined.  Chinese markets fell on concerns about slowing growth, which was worsened by the government’s zero-tolerance policy toward the coronavirus.

Underlying market movement:

Underlying-Weekly-5-30-2022-U.S stocks Rallied

After temporarily falling below $100 per barrel on May 10, the price of US crude oil has continued to rise. Oil was selling at about $115 per barrel on Friday. Nonetheless, this is a drop from the $123 level hit on March 8, just a few weeks after war broke out in Ukraine.

Sentiment Analysis

U.S stocks rallied. The overall tone of the week remains ambiguous. In terms of sentiment orientation, the Dow-30 industrial index of the United States moves into the positive zone. The rest of the week will be neutral.
The mood trend for European indices is still ambiguous. The French index CACA-40 enters the positive territory. However, the DAX-30 and FTSE-MIB indices are in a strong downtrend for the week.
The sentiment around the major APAC indexes shifts to neutral-bullish. The Kospi-100, Nikkei-225, and ASX-200 all indicate a strong upward trend for the week. The remainder is unbiased.

Sentiment Trend:

Sentiment Trend Chart-5-30-2022-U.S stocks Rallied

The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including productivity and unit labour costs.(https://www.fxstreet.com/economic-calendar)

Sentiment Score:

Sentiment Values-5-30-2022-U.S stocks Rallied

Note: The news sentiment data is the most useful additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

The buy/sell signals generated by InfoTrie’s proprietary Investment/Trading models are shown in the table below. These models were built utilising technical, foundational, and quantitative methodologies, with the news-based sentiment score serving as a secondary overlay.

I tallied the random signals from different Trading/Investment models at InfoTrie.

Buy Sell-5-30-2022-U.S stocks Rallied

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, don’t hesitate to contact us with the information provided below.        

contact@infotrie.com

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