The S&P 500 and Nasdaq slipped into negative territory on Thursday trading (20/07/23), weighed down by drops in Tesla and Netflix following their quarterly results, but the Dow Jones advanced for a ninth straight day thanks to gains in Johnson & Johnson following a strong annual forecast. The decline for the Nasdaq was its largest one-day percentage fall since March 9, while the Dow registered its ninth straight session of gains, its longest winning streak since September 2017. The Nasdaq itself has surged 34.4% this year to levels not seen since early April 2022, supported by a seemingly unstoppable rally in megacap growth names such as Nvidia and Meta on the back of optimism over Artificial Intelligence (AI), a stronger-than-expected US economy, and expectations that the Federal Reserve is nearing the end of its aggressive interest rate hike. Economic data released on Thursday also indicated that the labor market is still quite tight, while the housing and manufacturing sectors remain sluggish. US jobless claims last week unexpectedly fell last week, touching the lowest level in two months. The decline for two consecutive weeks raised cautious optimism that the economy could avoid a dreaded recession this year. As for US Inflation, it was recorded to have slipped further in June, but the strong labor market also supported wage growth, thereby helping people’s purchasing power to be maintained. On the other hand, the Philadelphia Fed Manufacturing Index, which is considered quite important in describing business conditions, especially in Philadelphia, was revealed to have worsened in July. From another continent, China held their benchmark interest rate at 3.55% to boost their sluggish economic growth post COVID lockdown. Meanwhile, Germany reported PPI (June) which turned out to be a bit more heated than expected. Similarly, Japan reported National CPI & Core CPI for June where they were also slightly higher than May. As for this morning, South Korea has also released PPI data (June) which turned out to be in deflation both on an annual and monthly basis. Later in the afternoon, market participants will only highlight the UK regarding economic reports, whether the sluggishness in Retail Sales proved to be able to reduce in June. On the commodities front, oil prices were muted as a lower-than-expected drop in US crude inventories and a potentially weaker global demand outlook kept investors cautious. Meanwhile, gold prices rose to more than two-month highs as tame UK Inflation data gave more speculation that the global interest rate uptrend is nearing its peak, while also helped by the weakening US Dollar.
JCI gained 33.99 points / +0.5% to 6864.19, thus confirming JCI is safely above MA10 Support after a short pullback in this short term Uptrend. Technically, NHKSI RESEARCH sees that the bullish swing could resume today with focus on surpassing the nearest Resistance 6880-6930. Indonesian capital market investors/traders may consider gradually averaging up their portfolio positions.
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