U.S. Stocks 

Fundamental Analysis: 

U.S. stocks extended recent gains on Friday, with the S&P 500 and Nasdaq posting their biggest monthly percentage gains since 2020, following upbeat earnings estimates from Apple and Amazon.  

Most sectors of the S&P 500 closed higher, with energy stocks rising 4.5%, the most among all sectors. Chevron jumped 8.9% and Exxon Mobil jumped 4.6% after both companies reported record quarterly revenue.  

Apple rose 3.3% after the company said parts shortages are easing and demand for iPhones remains strong. Amazon surged 10.4% after the company forecast third-quarter revenue would jump due to an increase in its Prime membership fees.  

On the corporate earnings front, Intel fell 8.6% after the company cut its annual sales and earnings forecast and its second-quarter results fell short of expectations.  

U.S. companies’ second-quarter results were mostly stronger than expected. The 279 S&P 500 component companies that have announced their results so far, 77.8% of the results exceeded expectations.  

Refinitiv’s I/B/E/S Estimates data show that the S&P 500 component companies are expected to second-quarter earnings growth of 7.1%, compared with the 5.6% increase forecast in early July.  

Economic data released earlier showed that U.S. labor costs rose strongly in the second quarter, with a tight job market driving payroll growth.  

But last Thursday, a government report showed that the U.S. economy unexpectedly contracted in the second quarter, which to some investors suggests that the U.S. economy is on the brink of recession.  

That could prevent the Federal Reserve from continuing to raise interest rates sharply as it struggles with high inflation.  

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is concerned about the 32975-line today. If the Dow runs steadily above the 32975-line, it will pay attention to the suppression strength of the 33233 and 33390 positions. If the Dow runs steadily below the 32975-line, it will pay attention to the support strength of the 32455 and 32083 positions.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks rose further on Friday, however, the NASDAQ Golden Dragon China Index (HXC) closed down 3%.

After the Hong Kong stock market fell 452 points last week, the three major indexes opened lower today and moved higher.

The Hang Seng Index (HSI) fell 0.32% to 20091 points, once falling below 20,000 points during the day to a new low of more than two months. The Hang Seng TECH Index (HSTECH) rose slightly by 0.19% to 4339 points. 

The southbound capital flow bucked the trend with a net inflow of HK$2.819 billion in half a day, and the market turnover was HK$64.4 billion

On the market, large technology stocks were mixed, Alibaba Group Holding Limited (9988.HK) fell 2%, Tencent Holdings Limited (0700.HK) fell 1%, and NetEase, Inc. (9999.HK). Meituan (3690.HK) rose 2%, Baidu, Inc. (9888.HK) rose 1%, JD.com, Inc. (9618.HK), and Bilibili Inc. (9626.HK) rose.

China’s State Council is determined the extent an exemption of purchase taxes on “new energy” vehicles. On this, new energy vehicle stocks went higher, with Geely Automobile Holdings Limited (0175.HK) rising nearly 10%.

Firms said the high-temperature weather brought a positive stimulus to beer sales and beer stocks rose collectively, with Tsingtao Brewery Company Limited (0168.HK) rising 6%.

Apple concept stocks were partly higher, Sunny Optical Technology (Group) Company Limited (2382.HK) rose 4%, Cowell e Holdings Inc. (1415.HK) is expected to reach a new high.

Tourism stocks, Hong Kong retail stocks, sporting goods stocks, restaurant stocks, and other economic recovery is active.

On the other hand, the TOP100 real estate companies’ July results were 28.6% lower than the previous year. Domestic housing stocks and property management stocks fell across the board, with Jinke Smart Services Group Co., Ltd. (9666.HK) plunging 33%.

Power stocks, gold stocks, insurance stocks, steel stocks, and other stocks fell generally. Hutchison Telecommunications Hong Kong Holdings Limited (0215.HK) fell 14% after the results.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.

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