US Indexes Decline, Tech Stocks Lag; Forex Markets Mixed, Gold Rises

Daily Market Newsletter 

February 21, 2024 

1️⃣ On Tuesday,major U.S.stock indexes slipped further after a long weekend.

2️⃣ The Dow Jones Industrial Average fell 64 points (0.17%) to 38,563,the S&P 500 dropped 30 points (0.60%) to 4,975,and the Nasdaq 100 was down 139 points (0.79%) to 17,546

3️⃣ Energy,consumer discretionary,and technology stock sectors lost the most.

4️⃣ Nvidia (NVDA) shed 4.35% to $694.52.The maker of artificial-intelligence-related chips will report fourth-quarter results after the market closes Wednesday.

5️⃣ Tesla (TSLA) slid 3.10%.European Union data showed a 42% month-on-month decrease in electric vehicle registrations in January.

6️⃣ Amazon.com (AMZN) declined 1.43%.The tech giant will replace Walgreens Boots Alliance (WBA) in the Dow Jones Industrial Average on February 26,announced index operator S&P Dow Jones Indices.

7️⃣ Capital One Financial (COF) edged up 0.12%,and Discover Financial Services (DFS) jumped 12.61%.Capital One said it has agreed to purchase Discover Financial for $35.3 billion.

8️⃣ Walmart (WMT) rose 3.23% to a record close of $175.86.The retail giant raised its annual dividend by 9% and announced its acquisition of TV maker Vizio (VZIO) for $2.3 billion.Vizio rose 16.26%.

9️⃣ The U.S.10-year Treasury yield dipped 2 basis points to 4.275%.

🔟 Regarding U.S.economic data,the Conference Board leading index dropped 0.4% on month in January (vs -0.2% expected).

1️⃣1️⃣ In Europe,the DAX 40 declined 0.14%,the FTSE 100 dipped 0.12%,while the CAC 40 gained 0.34%.

1️⃣2️⃣ U.S.WTI crude oil fell $1.31 (-1.67%) to $77.15 a barrel.

1️⃣3️⃣ Gold price increased $6 to $2,023 an ounce.

MARKET WRAP: FOREX

1️⃣ The U.S. dollar kept softening against other major currencies, with the dollar index easing to 104.07.

2️⃣ EUR/USD climbed 29 pips to 1.0806.

3️⃣ USD/JPY dipped 10 pips to 150.01. This morning, Japan recorded a trade deficit of 1.76 trillion yen in January with exports growing 11.9% on year (vs +9.5% expected) and imports falling 9.6% (vs -8.4% expected).

4️⃣ GBP/USD climbed 23 pips to 1.2616.

5️⃣ AUD/USD added 12 pips to 0.6549.

6️⃣ USD/CHF edged down 4 pips to 0.8817.

7️⃣ USD/CAD gained 34 pips to 1.3522. Canada's inflation rate decelerated to 2.9% on year in January (vs 3.2% expected) from 3.4% in December.

8️⃣ USD/CNH declined 100 pips to 7.2018. China's central bank cut its 5-year loan prime rate by 0.25 basis points to 3.95%.

9️⃣ Bitcoin marked an intraday high of $53,000, which was last seen in December 2021, before pulling back to its recent trading range of around $52,000.

MARKET WRAP: FOREX

GBP/USD Intraday: rebound expected

Pivot:1.2615

Preference:Long positions above 1.2615 with targets at 1.2645 & 1.2665 in extension.

Alternative scenario:Below 1.2615, look for further downside with 1.2595 & 1.2580 as targets.

Comment:The RSI calls for a rebound.

USD/JPY Intraday: under pressure

Pivot:150.15

Preference:Short positions below 150.15 with targets at 149.70 & 149.50 in extension.

Alternative scenario:Above 150.15, look for further upside with 150.30 & 150.45 as targets.

Comment:As long as 150.15 is resistance, look for choppy price action with a bearish bias.

EUR/USD Intraday: the upside prevails

Pivot:1.0795

Preference:Long positions above 1.0795 with targets at 1.0825 & 1.0840 in extension.

Alternative scenario:Below 1.0795, look for further downside with 1.0778 & 1.0760 as targets.

Comment:The RSI advocates for further upside.

Dow Jones (CME)‎ (H4)‎ Intraday: choppy

Pivot:38740.00

Preference:Short positions below 38740.00 with targets at 38510.00 & 38400.00 in extension.

Alternative scenario:Above 38740.00, look for further upside with 38810.00 & 38910.00 as targets.

Comment:The RSI calls for a new down