Summary:
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US benchmarks look to build on recent recovery
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Markets jumped on auto tariff news
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Walmart called to open higher after earnings beat
US stock markets are working on a third consecutive day of gains as equities across the Atlantic continue their recovery from Monday’s rout. Yesterday afternoon they received a boost from news that president Trump is delaying a decision on auto tariffs by up to 6 months and they are trading modestly higher once more today ahead of the cash session. The S&P500 is now back at the 8 EMA, which itself is below the 21 and this is an area to keep an eye on going forward.
US stocks are looking to extend their recovery, but it is worth pointing out that they remain below both the 8 and 21 EMAs which themselves are in a bearish orientation. Source: xStation
One market that can provide some valuable insight into US stocks is the volatility index, with the so-called “fear gauge” often seen as a leading indicator. On this front things look pretty good for investors as the VIX has fallen back lower today and is beneath the 17 level once more. The level around 17-18 can often serve as a pivotal one, with pushes above there seeing rapid increases in volatility while below there the markets become relatively sanguine. A daily close below 17.50 would further support this recovery in stocks and raise hopes that the worst of the pullback could be already over. Any spikes back above 17.50 could serve as a warning sign that the weakness in stocks is just the start of something bigger.
The Volatility index has dropped in recent sessions and in doing so fallen back below the 17 mark. This suggests more tranquil conditions for equities. Source: xStation
One stock that is attracting attention this afternoon is Walmart after the firm delivered a decent set of figures in its latest trading update. The world’s largest retailer beat the street on earnings with an adjusted EPS of $1.13 vs $1.02 expected, however turnover was a bit of a disappointment with revenue coming in at $123.93B vs $125.03. The company described the results as putting it in a good position to hit full-year targets and stated that it has been pouring money into new technology to improve the efficiency of online deliveries. Shares are called to open higher by over 3% this afternoon.
Shares in Walmart are set for a bright start this afternoon with the stock rising after beating earnings estimates in its latest update. Source: xStation
