Outlook for the Week of July 28, 2014
Last week finished in the red after heightened geopolitical
concerns and a couple of high-profile earnings misses combined to
trigger some selling.
While the bears are starting to circle the markets, these
pullbacks seem to reflect bulls taking a breather and looking to
buy at lower prices. This environment may lead to more weakness
in stocks in the coming week, but a significant pullback appears
Against that backdrop, any major action this week will be
driven by earnings and a packed slate of economic reports.
The big reports likely to move the market include the second
quarter GDP, expected to come in near a gain of three percent
after a 2.9 percent decline in the first quarter. The granddaddy
of them all -- the jobs report -- comes on Friday morning. Add in
an FOMC meeting, monthly auto sales and more housing numbers, and
investors better be ready for a wild ride.
Amazon Heavy On Markets And This ETF
SPDR S&P 500 ETF (NYSE:
The index-tracking ETF is now 0.5 percent from an all-time
closing high set July 24. More selling could occur this week,
depending on what the bevy of reports to be released say. The
support level to watch is $194.70, which is the 50-day moving
average and would reflect a 2.2 percent pullback from an all-time
That level would be a small, healthy pullback, and investors
could consider it as a buying opportunity.
KraneShares CSI China Internet ETF (NASDAQ:
The Chinese stock market has been quietly breaking out the
last few weeks.
Last Friday internet giant Baidu (NASDAQ:
) reported blockbuster earnings and rallied to a new all-time
success led to KWEB trading at a new four-month high. The stock
is the number one holding in KWEB with an allocation of 11
Investors should start to watch the action not only in KWEB,
but also all
-related ETFs if the country continues to show solid economic
number like the PMI that was released last week.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.