U.S. Stocks 

Fundamental Analysis: 

U.S. stocks rallied for a second day on Thursday, 28th July 2022, with all three major stock indexes up more than 1%, as data showed the economy shrank for a second straight quarter, sparking speculation among investors that the Federal Reserve may not need to raise interest rates as aggressively as some had feared.

After the data was released, the indicator 10-year U.S. bond yield retreated, and utilities and real estate stocks. The two sectors that tend to rise when U.S. bond yields fall, were the best performers among the major S&P 500 sectors.

In addition, forecasts for second-quarter earnings growth rose this week as more S&P 500 component companies reported results and beat analysts’ expectations.

Ford shares jumped 6.1% after reporting better-than-expected quarterly net income. 

After the bell, Amazon jumped more than 12% after the online retailer reported quarterly sales that beat Wall Street expectations. Amazon was up 1.1% in regular trading hours.

Earlier in the day, the U.S. Commerce Department said the U.S. economy unexpectedly contracted in the second quarter, the second consecutive quarterly decline in the government’s reported gross domestic product (GDP). 

This increases the likelihood that the economy is on the brink of recession, which some investors say could prevent the Federal Reserve from continuing to aggressively raise interest rates as it battles high inflation.

The Nasdaq recorded its biggest two-day percentage gain since 27th May 2022. Stocks surged in the previous session as the magnitude of the Fed’s rate hike and remarks from Chairman Jerome Powell eased concerns about the pace of rate hikes.

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: 

U.S. stocks closed higher overnight as investors bet the Federal Reserve will slow the pace of interest rate hikes.

Hong Kong stocks opened higher, with Hang Seng Index (HSI) up 0.12%, Hang Seng China Enterprises Index (HSCEI) up 0.19%, and Hang Seng TECH Index (HSTECH) up 0.2%.

On the market, most of the large technology stocks rose, JD.com, Inc. (9618.HK), Xiaomi Corporation (1810.HK) rose more than 1%, Meituan (3690.HK), Baidu, Inc. (9888.HK) rose slightly, Alibaba Group Holding Limited (9988.HK), and NetEase, Inc. (9999.HK) lower.

Yesterday’s leading education stocks rose again, the New Oriental Education & Technology Group Inc. (9901.HK) jumped more than 11%.

Gas stocks were higher, while biotechnology stocks, insurance stocks, sporting goods stocks, lithium battery stocks part of the rise.

On the other hand, beer stocks Budweiser Brewing Company APAC Limited (1876.HK) opened 3.59% lower after the results, power stocks, shipping stocks, e-cigarette concept stocks fell in general.

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 pay attention to 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 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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