Euclid Investment Advisory Blog

Review & Analysis at Close July 18, 2022

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US Stocks opened higher Monday, picking up on Friday's momentum. At one point in the morning, all of the major indexes were up almost 2%, but they couldn't hold the gains. Each of the indexes closed in negative territory, marking the first time since January that they each gave up 1% gains on the same day. Monday's culprit seemed to be a report from Bloomberg News* indicating that Apple was planning to "slow hiring and spending growth next year in some divisions to cope with a potential economic downturn." The story appeared shortly after 1 p.m., right near stocks' high water mark for the day. Apple shares finished down 2.1% in the day’s trading.

US Equities: Weekly change as of July 18: S&P 500 -0.59%, NASDAQ 100 +0.12%, NASDAQ Comp. -0.16%; VIX fell 3.32% to 25.30.

Also for the week, China fell 1.70%. Europe rose 0.82%. The 10-year-2-year Yield Curve is now inverted: spread widened to -0.19. The Yields momentum has turned down. Weekly change as of July 18: Consumer Discretionary +2.04%, Communication Services +0.25%, Tech 0.05%, Energy -0.16%, Financials-0.50%, Staples -0.78% Materials -0.84%, Industrials -1.15%, Real Estate -1.53%, Utilities -2.09%, Health Care -2.27%.

Sector Strategic Trend Score: Eight Bearish, Bear Alert (Health Care, Utilities)

Fixed Income
The 10-year US Treasury yield fell to 2.960%, down from recent peak of 3.483%. The 2-year US Treasury yield rose to 3.15, still below recent peak of 3.45%.

Currencies
Currencies vs. US Dollar: The Australian Dollar, the Euro, the British Pound, and the Japanese Yen remain in long-term Bearish trends vs. the US Dollar. The Euro fell below US Dollar last week, closed today at 1.01.

The US Dollar closed at 107.23 after peaking at 109.14 last week. Gold in Bearish downtrend, closing at 1,159.16, down from its 1,930 peak May 9. Base metals fund (Cu, Al, Zn) and Copper in sharp Bearish downtrends, both oversold. West Texas Crude Oil rose today to $99.42/bbl.

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