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Stocks move higher and rebound from triple digit losses

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Stocks move higher and rebound from triple digit losses

Stocks in the US started off on the defensive as increasing inflation data in Japan eroded the Nikkei.  With Asian stocks moving lower, US futures prices declined without any economic data as an impetus to generate momentum.

In Asia, Japan’s Nikkei Stock Average shed 3% amid a strengthening yen and mixed earnings results. The dollar fell below the 99 level and was on track for the lowest close in a month after data showing Japanese consumer prices rose more than expected in June. Elsewhere in Asia, China’s Shanghai Composite slipped 0.5%.

After the bell on Thursday, Amazon (NASDAQ:AMZN) posted $15.70 billion in revenue for the quarter, slightly off analyst expectations of $15.732 billion for the three months that ended June 30. The company lost $7 million in the second quarter, or 2¢ a share, way off the Street’s already meager prediction that it would earn 5¢ a share.

Consumer sentiment in the US was very solid with the Thomson Reuters/University of Michigan’s sentiment index posting an 85.1 reading which is a six year higher compared to the 84 in expected by economists or the 83.9 in June.

The Dow Industrials edged higher on Friday, despite trading down nearly 140 points at the session lows.  Stocks rebounded into the close, as investors look to next week’s GDP and Non-farm payroll reports.

Momentum on the DJI Index is flattening with the MACD (moving average convergence divergence index) heading toward the zero index level after making a 12-month high in mid-July.  The RSI (relative strength index) has flattened at the top end of the neural range near 64.

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