{"id":116076,"date":"2017-11-07T10:05:28","date_gmt":"2017-11-07T15:05:28","guid":{"rendered":"http:\/\/countingpips.com\/?p=116076"},"modified":"2018-06-01T15:53:28","modified_gmt":"2018-06-01T15:53:28","slug":"industrial-stocks-index-technical-analysis-earnings-season-ends-in-the-us","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/industrial-stocks-index-technical-analysis-earnings-season-ends-in-the-us\/","title":{"rendered":"Industrial Stocks Index: Technical Analysis – Earnings season ends in the US"},"content":{"rendered":"
November 7, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

Earnings season ends in the US<\/strong><\/p>\n

In this review, we suggest considering the personal composite instrument (PCI) “Stock index – industry”. It includes the stocks of the largest US industrial companies. The Industrial_Stocks<\/a> index may decline, amid the emerging difficulties with the approval of the US President Donald Trump\u2019s tax reform. Market participants fear that its implementation will require much more time than planned. In addition, a significant part of the reform may be contracted.<\/p>\n

Since mid-June, 2017, the US WTI oil has increased by a third and reached a 2-year high. In addition, the prices of other energy carriers, industrial metals and other raw materials have risen. This may become a significant negative factor for the financial state of the US industry depending on the commodity market. Another negative factor lies in the consistent rate hike policy of the Fed, which can increase the loan debt burden of the manufacturing companies. Note that currently about 400 companies from the S&P 500 list have reported. Their total profit for the Q3, 2017 increased by 8%. This slightly exceeds the forecasted growth of 5.9% before the publication of the reports. Since early October, the growth of the PCI “Stock index – industry” was about the same and amounted to 1.7%. At the same time, the Dow Jones Industrial Average index rose by 5%. We do not exclude that the factor of the quarterly reports will no longer be relevant, since most of the companies have already published their financial performance.<\/p>\n

\"Industrial_Stocks\"<\/p>\n

On the daily timeframe, Industrial_Stocks: D1<\/b> remains in the rising trend, but its growth has slowed down and some technical analysis indicators have formed Sell signals. The downward correction is possible in case of the publication of negative economic and corporate information in the US, as well as in case of some problems in Trump\u2019s tax reform.<\/p>\n