Market Outlook - 16th - 20th January

Market Outlook

- WALL STREET:
US indices closed higher last week. On the economic front, the University of Michigan preliminary index of consumer sentiment rose to 74 in January from 69.9 in December while initial jobless claims climbed to 399,000 (375K exp.) in the week ended January 7th. Regarding US stocks, JPMorgan Chase reported 4Q net income of $3.7B compared with $4.8B a year earlier. Chevron announced it expects 4Q earnings to be significantly lower compared to 3Q. Also, the Federal Reserve's Beige Book said economic activity expanded at a modest to moderate pace. Most sectors finished the week in the positive territory. Stocks in the diversified financials and automobiles sectors posted the best performance, and gained more than 4%. From a technical point of view, the S&P 500 index remains on the upside above its rising 20D & 50D MAs, and should challenge its nearest resistance around 1290 before further advance to 1320.

...