U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Friday, 22nd July 2022, as disappointing earnings from Snap made investors nervous and social media and ad tech companies both fell, overshadowing a boost from gains by card issuer American Express after it released upbeat earnings results.

However, all three major stock indexes rose on a weekly basis, with the tech-heavy Nasdaq up 3.3% for the week. The S&P 500 rose 2.4% and the Dow Jones industrials gained 2%.

Snapchat’s parent company reported its weakest quarterly sales growth since going public, dragging Snap plummeting by nearly 40%.

Twitter fell before recovering lost ground and climbing 0.8% after reporting an unexpected drop in revenue. Other online companies that rely heavily on advertising, such as tech giants Meta Platforms and Alphabet, fell 7.6% and 5.6%, respectively, weighing on the Nasdaq.

Meta and Alphabet will report earnings this week, and tech giants such as Apple, Microsoft and Amazon will also report results then.

Communications services and information technology stocks in the S&P 500 fell 4.3% and 1.4%, respectively, leading the 11-sector index lower.

Meanwhile, a survey on Friday showed that U.S. business activity shrank in July for the first time in nearly two years, as a sharp slowdown in services activity overshadowed continued modest growth in manufacturing activity, reflecting an economy hampered by high inflation, rising interest rates and worsening consumer confidence.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32083-line today. If the Dow runs steadily above the 32083-line, it will pay attention to the suppression strength of the two positions of 32455 and 32781. If the Dow runs steadily below the 32083-line, it will pay attention to the support strength of the two positions of 31661 and 31291.

Hong Kong Stocks 

Fundamental Analysis: 

On Friday, the U.S. stock market plunged, Hong Kong stocks opened lower in the morning session. The Hang Seng Index (HSI) fell 0.75%, the Hang Seng China Enterprises Index (HSCEI) fell 0.94%, the Hang Seng TECH Index (HSTECH) fell 1.96%, barely holding 4,500 points.

The Southbound capital inflow bucked the trend with a net inflow of HK$1.081 billion in half a day, and the market turnover was HK$48 billion.

On the plate, large technology stocks all setback, Kuaishou Technology (1024.HK) fell 3.17%, Meituan (3690.HK), Baidu, Inc. (9888.HK), Alibaba Group Holding Limited (9988.HK), Tencent Holdings Limited (0700.HK) are down more than 2%.

Automotive sector led the decline, the worst performance of new energy auto stocks, Li Auto Inc. (2015.HK), NIO Inc. (9866.HK), XPeng Inc. (9868.HK) led lower.

Dairy stocks, China Feihe Limited (6186.HK) plunged more than 13% after the performance. Shipping stocks, aviation stocks, biotechnology stocks, lithium battery stocks, electricity and other popular stocks have fallen. 

On the other hand, National regular meeting: city-specific policies to promote the steady and healthy development of the real estate market.

Mainland property stocks and property management stocks rose and rebounded across the board, and performed better in the weak. Some Chinese banking stocks and gold stocks rose, and online education stocks are now rising rapidly.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 21450-line today. If HK50 can run stably above the 21450-line, then focus on the suppression strength of 22127 and 22785. If HK50 runs below the 21450-line, then pay attention to the support strength of 20467 and 19517.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 14352-line today. If the A50 runs stably below the 14352-line, it will pay attention to the support strength of the two positions of 13970 and 13544. If the A50 runs above the 14352-line, it will open up further upward space. At that time, pay attention to the two positions of 14695 and 14985.

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