Last week the American stock market showed that investing in large and reliable companies, which are time-tested and change the world with the power of innovation, is able to survive the natural disasters and polemics of central banks with advocates of softening regulation. The fears of the skeptics were partially refuted by reports on the dividends payment, the results of clinical trials and marketing researches.
The S&P 500 broad market index increased by +0.72% per week to 2,443.05 pips from 2,425.55 pips with a summer compression of physical trading volumes of 9.4% per week, and the Dow Jones index rose to +0.64% per week to 21813.67 from 21674.51 pips with a fall of the traders activity at 13.3% per week. Generally the positive news on major and sustainable innovation companies, as well as statistics on the increase in basic orders for durable goods in the US and the comments of the leaders of central banks of the developed countries of the West alleviated the fear of Hurricane Harvey. The price of Brent crude oil fell to $51.6, but it returned to $ 52.6 per barrel on reports about the disaster.
The EUR/USD jumped to the area of 1,194 from 1,177, the 10-year treasury bonds yield fell to 2.17% and the price of gold rose to $1,303 from the area of $1,290 per ounce, as the conference in Jackson Hole increased government spending expectations in developed countries with an increase of the public debt limit in America.
Rates of the telecommunications giant Apple (NASDAQ: AAPL) increased by +1.5% per week on expectations of the new products presentation on September 12. This includes the Apple TV model with the support of streaming video with twice improved resolution in 4K format and of course the new iPhone with OLED-screen and facial recognition support. Investors are also waiting for the opening of a pre-order for this phone gadget on September 15 and the start of sales of the 8th smartphone of the trading line on September 22.
Though according to rumors the price of the phone starts at $999 for the model with the least storage space, 80% of owners of smartphones, produced by the California company, assume that they will purchase… an another phone of the same developers.
As for the traditional Apple business model combining products into a set for a certain device, it seems that for the wireless charging to work, the device needs 7.5 watts instead of the standard 15, and thus it will be delivered under the family of iPhones, which contributes to the customer retention and the increase of accessories sales.
At the conference in Jackson Hole, the central banks of Europe and the US spoke out against the return of the excessively mild regulatory conditions that contributed to the crisis. The need to maintain a gap in raising the US public debt limit in the event of cyclical changes was also discussed.
Hurricane Harvey entered the top 4 in terms of damage (over $40 billion) for the entire time of observations in the US. Besides oil production, the chemical sector (individual Dow Chemicals) and retail (including Wal-Mart (NYSE: WMT)) are under the greatest impact of the disaster.
This week, the focus of market participants’ attention will be the forecast of ADP and official data on employment, personal incomes and consumer spending, as well as the second preliminary statistics on US GDP, the production index of the Institute of Supply Management and the precise value of the Michigan consumer confidence. The retailers Best Buy and Dollar General and the innovative company Analog Devices reported.