STOCK PRICES AND NEWS


Sundial Growers rises as again as cannabis sector caps off strong week

Sundial Growers rises as again as cannabis sector caps off strong week

NASDAQ:SNDL rose again on Friday as the once popular meme stock posted a 33% gain over the past five trading days. Shares of SNDL added a further 5.41% on Friday, and closed the trading week at $0.39.

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DEEPER DIVE

Tesla: Price target at $400 on China headwinds, margin compression, lower deliveries

Tesla: Price target at $400 on China headwinds, margin compression, lower deliveries

Tesla (TSLA) has been a stellar performer for investors over the past number of years, but recent events both from a macroeconomic perspective and company-specific viewpoint are leading investors to question the investment thesis and relative valuation of Tesla. 

AAPL price target at $100 on falling 2023 revenues

AAPL price target at $100 on falling 2023 revenues

Apple’s (AAPL) last quarterly earnings report on April 28 was solid, with earnings and revenue both beating consensus analyst forecasts.

NVDA price target at $205 with strong revenue growth

NVDA price target at $205 with strong revenue growth

Nvidia was one of the top-performing stocks in 2021, but the picture has changed in 2022 with the stock falling by nearly 40% year to date. 


NASDAQ

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S&P 500

Latest S&P 500 Analysis


SPECIAL YEARLY FORECAST

S&P 500 Forecast (SPY) (SPX): Four reasons why the S&P 500 can power to 5,500 in 2022

S&P 500: Four reasons why the S&P 500 can power to 5,500 in 2022

Forecasting, like economics, is a dismal science, but occasionally one can reap the rewards of a carefully constructed argument. 2021 follows 2020 as a tumultuous year with some momentous events in the stock market. With less than a month to go, we can safely consign 2021 to one of the strongest years on record for stock market performance, and now we endeavour to forecast for 2022. Will it be another year of strong equity performance? Will inflation batter returns? Will Bitcoin blow up or takeover?



US EQUITY INDICES

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The old economy stocks are said to be represented by the Dow. The Dow tends to be the leading indicator for international investment.

While the Dow reflects the BIG money, S&P 500 reflects the broader view is the preferred gauge of equity markets due to its bread coverage of the market. Historically it has shown a negative correlation to the yen (even on an intraday basis). It is a market value-weighted index made up of the prices of 500 large stocks traded in the US market, covering about 75% of US equities.

Nasdaq Composite is highly followed in the U.S. as an indicator of the performance of stocks of technology companies and growth companies. Since both U.S. and non-U.S. companies are listed on the NASDAQ stock market, the index is not exclusively a U.S. Index. The NASDAQ represents the speculative retail money.

Generally speaking, if the U.S. equity markets rise, they cause an increase in investors' risk appetite in which case foreign investment dollars will flock the U.S. equity market pumping the U.S. dollar higher.


EUROPEAN EQUITY INDICES

Germany DAX - Daily

UK FTSE 100 - Daily

The Deutscher Aktien Index, or DAX 30 for short, is the blue-chip market index for the Frankfurt Stock Exchange. It follows the top 30 German stocks on the electronic Xetra system that is used on the exchange. The DAX indices are all calculated using capitalization-weighted index using the total return Laspeyres index for calculations. 

Called the footsie, the Financial Times Stock Exchange 100 is a market capitalization-weighted index representing the top 100 blue-chip companies on the London Stock Exchange. The index is said to map more than 80% of the total capitalization in the United Kingdom. Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index. 

The constituents of the index are revised every 3 months, based on market capitalization. For this reason, the FTSE 100 should not be assessed for any market breadth index, other than for the recent period for which the components have remained unchanged.


JAPANESE EQUITY INDICES

The Nikkei is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted average (the unit is yen), and the components are reviewed once a year. This market is close correlated with US 10-Year Treasury notes. It's also useful to spot risk appetite and gauge FX flows. 
Usually it's negatively correlated to the Yen. It can be explained as a reasonable decline in the yen usually lifts stocks of export-oriented companies (cheaper Japanese products), which tends to boost the overall stock index. 
But the Nikkei-yen relationship is sometimes reversed (positive correlation): wherein a strong open market in the Nikkei tends to boost the yen (weighs on USD/JPY) as investors’ funds flow into yen-denominated stocks.

Nikkei225 - Daily


Relationships between stocks and currencies

Currencies are probably the most difficult asset class to fit into a consistent or idealized intermarket model. To start with, think that in order to purchase stocks from a particular country, investors must pay in the local currency, increasing the demand for it. The other way round, a strong currency makes bonds and stocks from that particular country look attractive.

In any case, the correlation is not always clear, there are response lags between each of the markets' reactions, Forex and equities, which leaves the investor holding foreign equities exposed to exchange rate fluctuations.

This correlation can also be fragile among international equity markets themselves. There are so-called "global divergences" when the stock market in one country starts performing better than the stock market in another country. Currency driven capital flows from the country with the weaker stock market to the country with the stronger stock market, is often the cause.

US Dollar Index - Daily

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Editors' picks

EUR/USD climbs above 1.0600 amid renewed dollar weakness

EUR/USD climbs above 1.0600 amid renewed dollar weakness

EUR/USD has gathered bullish momentum and advanced beyond 1.0600 during the American trading hours on Monday. Following the mixed data releases, the US Dollar Index extended its slide below 104.00 and fueled the pair's rally in the second half of the day.

EUR/USD News

GBP/USD reverses direction, reclaims 1.2300

GBP/USD reverses direction, reclaims 1.2300

Following a dip below 1.2250 earlier in the day, GBP/USD reversed its course and reclaimed 1.2300. The broad-based selling pressure surrounding the greenback helps the pair push higher in the American session as investors assess the latest data releases.

GBP/USD News

USD/JPY consolidates around 135.00 mark, downside potential seems limited

USD/JPY consolidates around 135.00 mark, downside potential seems limited

USD/JPY gained some positive traction on Monday, though lacked any strong follow-through buying. The risk-on mood undermined the safe-haven JPY and extended support amid rising US bond yields. Upbeat US Durable Goods Orders failed to impress the USD bulls or provide any impetus to the pair.

USD/JPY News

Gold drops toward $1,820 as US yields push higher

Gold drops toward $1,820 as US yields push higher

Gold extended its daily slide toward $1,820 in the second half of the day. The benchmark 10-year US Treasury bond yield is up nearly 2% on the day at around 3.2% amid improving market mood, weighing on XAU/USD on Monday.

Gold News

WTI: Recovery remains elusive below $107.00

WTI: Recovery remains elusive below $107.00

WTI crude oil prices extend the previous week’s recovery from the monthly low, despite easing from intraday high to $106.50 amid early Monday morning in Europe. The black gold’s latest pullback could be linked to the commodity’s inability to cross the $107.00 hurdle, as well as the market’s indecision amid mixed sentiment.

Oil News

Risk-on/ Risk-off

Bonds

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