US Market Outlook 14 August 2018

Posted by Tim Sholl on 15-Aug-2018 00:17:34

US investors continue to deal with a strong economy , a strong jobs market , a strong dollar , rising interest rates , rising corporate profits , and a very strong large cap tech sector which has kept the markets bullish through the year. This seems to be a great buy the dip market for most of the leading stocks.

Recent events have seen trade tensions increase around the globe as the USA tries to reset some of the deals that have been in force for many years. By increasing tariffs on some goods that are imported into America , the US is trying to force each country to negotiate a better trade deal. This may or may not work and it does risk causing serious inflation in the US from hurting the US people.

The selling pressure seems to have subsided from the Turkish led crisis which erupted last week and saw the Lira plummet 20% in one session. The US indices are at Dow 25226 up 40 , the S&P500 at 2828 up 6 , and the Nasdaq 100 at 7400 flat. The US dollar remains strong with the EUR at 1.1380 down 28 , the GBP at 1.2766 flat , and the JPY at 110.78 weaker by 7. Gold is at 1196.40 up 3.40 and WTI crude oil futures are at 67.96 up 68 after the Saudis reduced output in July. 

US business optimism remains high in July , and export prices rose by 4.3% y/y while import prices rose by 4.8%y/y.

Topics: Trading, Market News, US Market Outlook