To start the Global Week Ahead, panic by shareowners in China shows no sign of abating. Oil prices are down again on Monday too. Despite this, U.S. futures were flashing bright green across the board.
Across the coming week, can U.S. markets stabilize and head back towards that S&P 500 2100 resistance level once again? The S&P 500 at 1922 on Monday must be too tempting for some to not want to buy the range-traded dip.
If you want to keep chasing the mega-cap FANG trade (Facebook, Amazon, Netflix and Google), here are the latest Zacks indicators.
On Monday, the Zacks system showed me all four stocks get either a D or F in Value, yet 3 of 4 have either a Zacks #1 or #2 Rank. Investors have been aggressively chasing analyst upgrades on this elite group of shares.
- Amazon (AMZN) has a Zacks #1 Rank (Strong Buy) on. We have long-term Zacks Growth rating of A, but a Zacks Value rating of F.
- Facebook (FB) also gets a Zacks #1 Rank. It has a Zacks Growth rating of B, but a Zacks Value Rating of F.
- Google (GOOGL) gets a Zacks #2 Rank. It has a Zacks Growth rating of C and a Zacks Value Rating of D.
- Netflix (NFLX) gets a Zacks #3 Rank. It has a Zacks Growth rating of F and a Value rating of F.
There is a “valuation Russian roulette” going on with trading on these shares.
On global macro indicators during the week ahead, we have no sign of marked strength — outside the U.S. and Mexico. The latest European indicators say deflation is very much alive.
The U.K. is likely to leave its 0.5% Policy Rate unchanged after its Monetary Policy committee meeting breaks up on Thursday.
A large set of speeches will be given in Paris on Tuesday by the likes of the BoJ’s Kuroda, the BoE Carney, the Fed’s Fischer and a group of ECB officials.
That is the policy event to watch this week.
Here Is the Global Week Ahead for Indicators—
On Monday, the Eurozone Sentix indicator showed 9.6, versus a forecast for 11.4 and a prior reading of 15.7. That’s not good news.
Mexican industrial production looks to rise +1.5% y/y, better than a prior +0.5% y/y rate. Manufacturing production looks to rise +2.8% y/y, better than a prior +1.2% y/y rate.
On Tuesday, the U.K.’s industrial production looks to rise +1.7% y/y, in line with the prior reading.
The BoJ’s Kuroda and the BoE’s Carney and the Fed’s Fischer speak in Paris. A number of ECB officials speak in Paris, too.
On Wednesday, France’s all-important HICP inflation rate should get to +0.2% y/y, up from +0.1 y/y.
The Eurozone’s industrial production should lift +1.3% y/y, worse than a prior +1.9% y/y rate.
Japan’s key machinery orders look to rise +6.3% y/y, worse than a prior +10.3% y/y reading.
On Thursday, the Australian unemployment rate should be 5.9%, slightly worse than the prior 5.8% reading.
The final reading for industrial production in Germany should be +1.5% y/y, lower than the prior +1.7% y/y reading.
There is a BoE Monetary Policy meeting and rate decision due. The base rate is not expected to move off the 0.50 level after the meeting.
The Bank of Korea (BoK) announces a rate decision. So does the National Bank of Poland (NBP).
U.S. initial claims should be strong again at 275K.
On Friday, Spain’s HICP inflation rate should be -0.1% y/y, in line with the prior -0.1% y/y rate.
Brazil’s economic activity should be terrible at -6.5% y/y, worse than the prior -6.38% y/y reading.
The Fed’s Dudley speaks in New Jersey.
U.S. capacity utilization should be 76.8, worse than a prior 77 reading. Industrial production should fall -0.2% m/m.
The University of Michigan sentiment index should flat-line at 92.6, which is a solid reading.
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