Stocks point to a softer start as retail sales tumble quite expected. The impact of rising covid cases are beginning to be reflected in macro data.

Covid woes and economic process concerns drag on sentiment


US stocks are set to open lower after reaching record high within the previous session. However, the mood has deteriorated amid the geopolitical crisis in Afghanistan, rising global COVID cases and amid concerns of slowing economic process in China and therefore the US.


US retail sales came in softer than expected falling -1.1% month on month in July, down from a 0.6% rise in June and well below the -0.2% decline forecast. the info comes as COVID cases still rise within the US with records levels being reached in some states. Retail sales are notoriously volatile and one very weak performance by no means constitutes a replacement trend. However, given rising covid cases and falling consumer confidence it certainly looks possible to hitch some dots. the buyer picture within the US is looking weaker.


Consumer spending will remain focused as quarterly reports from Walmart and residential Depot also are focused . These retail giants are up against tough comparisons from the year ago COVID boost.


China’s assault on the tech sector continues with regulators issuing new rules intended to stop unfair competition on the web . The likes of Alibaba, Tencent and JD.com are trading sharply lower pre-market.


Looking ahead attention will shift to Federal Reserve System Chair Powell’s speech. Investors are going to be watching out for clues over when the Fed could start tapering bond purchases.


Where next for the SP500?


After another record high of 4481 within the previous session S&P500 futures are edging lower, pausing for breath within the phenomenal rally. the tiny move lower this morning hardly registers on the strongly bullish chart. However, buyers might be cautious after such a solid run higher. Today’s move lower is bringing the RSI out of overbought territory. it might take a move below 4390 July 13 high to negate the near term uptrend. Below here the 50 sma at 4345 could offer support. Buyers got to push over 4481 for brand spanking new all time highs.


Oil moves lower for a fourth straight session


Oil prices are extending losses for a fourth straight session on Tuesday as COVID concerns and slowing growth fears weigh down the demand outlook.


China’s intolerance to COVID and up to date imposition of strict pandemic restrictions to stop the spread of Delta is unnerving investors. the newest data from China highlights the impact that such restrictions are having on the economy and on oil demand.


Japan and Australia also are tightening lockdown restrictions hurting the demand outlook and adding pressure to the oil price.


US crude trades -1.0% at $66.50


Brent trades -0.85% at $68.86