While gold hogs the headlines, these other metals have promising technical set-ups, says Katie Stockton
Metals prices have shined year-to-date, with most metals having outperformed the S & P 500 Index and gold the standout relative performer. We believe gold's outperformance should persist given the positive long-term momentum that gold possesses in absolute terms and relative to equities. However, while gold seems to get all the press, there are other metals with promising technical set-ups that are worth a look from a technical perspective. Copper prices are higher Monday, unphased by weakness in metals affected by tariff headlines. The generic copper futures are above their 50-day, or ~10-week, moving average MA) in a pending breakout from a triangle pattern. Short-term momentum has shifted positive, increasing the likelihood that the weekly MACD (i.e., intermediate-term momentum) also flips positive, which suggests copper can continue to rally towards long-term resistance near $5.20/lb. Below this level, a long-term trading range is in place, so we feel a neutral long-term bias is appropriate for copper. Support is at the 200-day MA, near $4.43/lb. More important trendline support, near $4.08/lb., was briefly tested in April. Precious metals like gold and silver are in bullish long-term uptrends, but platinum is now on our radar as a potential catch-up opportunity. Last week, platinum confirmed a breakout above long-term triangle resistance, which is bullish for the next several months. Intermediate-term momentum is positive and strengthening per the weekly MACD, suggesting recent digestion will be brief and give way to additional upside follow-through. The next major resistance level we are watching for platinum is $1240/t oz., which is a long-term technical objective. This level is derived by a 50% Fibonacci retracement level, which captured the 2021 high. Former resistance, near $1030/t oz., is now initial support. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer. Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC ("Fairlead Strategies") for informational purposes only. This material is for illustration and discussion purposes and not intended to be, nor construed as, financial, legal, tax or investment advice. You should consult appropriate advisors concerning such matters. This material presents information through the date indicated, reflecting the author's current expectations, and is subject to revision by the author, though the author is under no obligation to do so. This material may contain commentary on broad-based indices, market conditions, different types of securities, and cryptocurrencies, using the discipline of technical analysis, which evaluates the demand and supply based on market pricing. The views expressed herein are solely those of the author. This material should not be construed as a recommendation, or advice or an offer or solicitation with respect to the purchase or sale of any investment. The information is not intended to provide a basis on which you could make an investment decision on any particular security or its issuer. This document is intended for CNBC Pro subscribers only and is not for distribution to the general public. Certain information has been provided by and/or is based on third party sources and, although such information is believed to be reliable, no representation is made with respect to the accuracy, completeness, or timeliness of such information. This information may be subject to change without notice. Fairlead Strategies undertakes no obligation to maintain or update this material based on subsequent information and events or to provide you with any additional or supplemental information or any update to or correction of the information contained herein. Fairlead Strategies, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs, or claims for your reliance on this material. Nothing herein is, or shall be relied on as, a promise or representation as to future performance. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Opinions expressed in this material may differ or be contrary to opinions expressed, or actions taken, by Fairlead Strategies or its affiliates, or their respective officers, directors, or employees. In addition, any opinions and assumptions expressed herein are made as of the date of this communication and are subject to change and/or withdrawal without notice. Fairlead Strategies or its affiliates may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different from or adverse to your interests or inconsistent with the advice herein. Any investments made are made under the same terms as nonaffiliated investors and do not constitute a controlling interest. No liability is accepted by Fairlead Strategies, its officers, employees, affiliates, or partners for any losses that may arise from any use of the information contained herein. Any financial instruments mentioned herein are speculative in nature and may involve risk to principal and interest. Any prices or levels shown are either historical or purely indicative. This material does not take into account the particular investment objectives or financial circumstances, objectives or needs of any specific investor, and are not intended as recommendations of particular securities, investment products, or other financial products or strategies to particular clients. Securities, investment products, other financial products or strategies discussed herein may not be suitable for all investors. The recipient of this information must make its own independent decisions regarding any securities, investment products or other financial products mentioned herein. The material should not be provided to any person in a jurisdiction where its provision or use would be contrary to local laws, rules, or regulations. This material is not to be reproduced or redistributed absent the written consent of Fairlead Strategies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Dollar stores are seeing higher-income shoppers rush in the door. It's a warning sign for the US economy.
Dollar store chains have seen higher-income shoppers flock to the stores in recent months as economic uncertainty surges and households look to save. "Higher income customers have been a meaningful growth driver for us," Dollar Tree (DLTR) CEO Michael Creedon told investors, specifically noting the chain saw an increase in customers with household incomes of more than $100,000. The company reported that same-store sales rose 5.4% in the first quarter, with improvement across all income levels. Earlier this week, Dollar General (DG) told investors it "saw the highest percent of trade-in customers" than it had in the last four years during the first quarter. Its CEO, Todd Vasos, said the company saw increased trade-in activity, or consumers who would typically shop at higher-cost competitors, from middle- and high-income consumers, who came to Dollar General instead. Its same-store sales grew 3.4% in the quarter. Data from shows that foot traffic to both retailers surged in April as some tariffs went into effect. Read more: What Trump's tariffs mean for the economy and your wallet The rise in shoppers turning to dollar stores and other discount retailers comes as evolving trade policy has created heightened economic anxiety among both consumers and businesses. A new report from ADP out Wednesday showed US private payrolls slowed significantly last month. "The weak numbers we're seeing now does not point to a labor market that's collapsing, but there is hiring hesitancy," ADP chief economist Nela Richardson told reporters on a call. Consumer confidence has also waned in recent months. It rose in May for the first time all year. PwC's Ali Furman told Yahoo Finance that while consumers showed "some resilience" month over month, they made more "discerning purchases." Dollar General expects its momentum to continue, as Vasos told investors, "Depending on where the macro environment goes, it should be very conducive to further trade-in, possibly as we move forward." Both dollar store chains tend to outperform when a weaker consumer and overall economy persist. When inflation hit 40-year highs in 2022, Dollar General and Dollar Tree stocks surged. Dollar Tree shares reached a record in April of that year, while Dollar General shares topped out in November. Year to date, Dollar General and Dollar Tree shares have handily outperformed the S&P 500 (^GSPC) — rising 45% and 18%, respectively — as well as larger rivals like Walmart (WMT) and Target (TGT), with the former calling out higher-income shoppers visiting more frequently in recent quarters. The S&P 500 is up about 1.8% this year, while Walmart stock has gained just less than 11%. Target shares are down almost 30%. Over the past year, however, both dollar store giants remained laggards, with shares down more than 20%. Tariff uncertainty may be getting more customers in the door, but the story isn't all positive for Dollar Tree. Dollar Tree stock fell as much as 10% in trading on Wednesday as the company outlined a profit hit on rising costs as a result of tariffs. The company now expects its second quarter adjusted earnings to be down as much as 50% compared to a year ago, before reaccelerating in the third quarter and fourth quarter, due to tariffs and the sale of Family Dollar. Overall, direct imports make up 41% to 43% of Dollar Tree's total retail value purchases, and China supplies the majority of those imports, per a company filing. When an analyst on the company's earnings asked how important China was to the company, Creedon said, "Global sourcing is critical." In the quarter, Dollar Tree's inventory increased 10%, or $247 million, to $2.7 billion due to "higher mark-on and inventory receipts as we expanded our multi-price assortment," CFO Stewart Glendinning said. Dollar Tree does expect strong customer traffic, however, with same-store sales expected to rise "towards the higher end" of its 3%-5% full-year outlook. Dollar Tree also updated its adjusted diluted earnings outlook and now expects to end the fiscal year in the range of $5.15 to $5.65, compared to the previously projected range of $5.00 to $5.50. Dollar General also raised its earnings forecast on Tuesday. The company now sees full-year adjusted earnings coming in between $5.20 and $5.80 per share, up from a range of $5.10 to $5.80. After a 15% rally on Tuesday, Dollar General stock was down about 1.5% in sympathy with Dollar Tree's slide on Wednesday. Dollar General's exposure to tariffs is much lower than its rival's, as 80% of its sales are food items, most of which are nonperishable items made in the US, like canned soups, beans, and chips, Morningstar analyst Noah Rohr previously told Yahoo Finance. Dollar General also directly imports less than 10% of what it sells, with less than 70% of that coming from China, Telsey Advisory Group analyst Joe Feldman wrote in a note to clients. Indirectly, the company imports roughly 10%-18% of items, with less than 40% of those coming from China, Feldman added. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
FTSE 100 closes higher after survey shows UK services sector returned to growth
Stocks in London made healthy progress on Wednesday, shrugging off weak US data, after a survey showed the UK services sector returned to growth in May. The FTSE 100 index closed up 14.27 points, 0.2%, at 8,801.29. The FTSE 250 ended 101.23 points higher, 0.5%, at 21,119.01, and the AIM All-Share closed up 0.84 of a point, 0.1%, at 754.35. In European equities on Wednesday, the Cac 40 in Paris rose 0.5%, while the Dax 40 in Frankfurt increased 0.8%. The S&P Global UK services purchasing managers' business activity index rose to 50.9 points in May from 49.0 in April, improving upon the flash reading of 50.2 released late last month, and above the 50.0 no-change threshold. The UK composite PMI also returned to growth with a reading of 50.3 points in May, up from 48.5 in April, also improving on the flash reading of 49.4 points. Rob Wood, at Pantheon Macroeconomics, said the figures show UK growth has 'passed the worst' as President Donald Trump walking back his 'more ruinous tariffs cuts the panic that took hold in April'. In Europe, the Hamburg Commercial Bank eurozone composite PMI edged down to 50.2 points in May from 50.4 in April. The final reading came slightly ahead of the flash estimate of 50.1 points. The HCBO eurozone services purchasing managers index fell to 49.7 points in May from 50.1 in April. It matched the flash estimate from April and came in above the 48.9 points cited by FXStreet. In New York, the Dow Jones Industrial Average was up 0.2% at the time of the London equities close on Wednesday, as was the S&P 500. The Nasdaq Composite was 0.3% higher. Markets on Wall Street climbed despite weak economic data raising fears that tariff uncertainty was hurting the world's largest economy. US private sector employment rose by much less than expected in May, according to numbers from payroll processor ADP. Private sector employment increased by 37,000 jobs in May, slowing from a revised 60,000 in April, and below FXStreet consensus of 115,000. April's total was revised downwards from 62,000. May's figure was the lowest monthly job total from the ADP count since March 2023. 'After a strong start to the year, hiring is losing momentum,' said Nela Richardson, chief economist at ADP. Mr Trump called on Jerome Powell, the chairman of the US central bank, to lower interest rates. 'ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE,' Mr Trump wrote on Truth Social. There was mixed news elsewhere as reports showed contrasting fortunes for US economic activity. The S&P Global US services PMI business activity index recorded 53.7 during May, up from a reading of 50.8 in April and comfortably above the 50.0 no-change level. It was also higher than the earlier flash estimate of 52.3. But the Institute for Supply Management Services PMI contracted in May for the first time since June 2024. The ISM Services PMI indicated slight contraction at 49.9, below the 50-breakeven point for only the fourth time in 60 months, and down from 51.6 in April. It was also below FXStreet consensus for a rise to 52.0. Admir Kolaj, economist at TD Economics, said the report was 'disappointing', indicating that even the services sector is 'starting to feel the pinch' from the uncertain trade environment. He said the details of the report 'were not particularly encouraging, with steep drops reported in business activity, new orders, and the backlog of orders'. 'The only bright spot was the improvement in the employment sub-index, which indicates that despite the challenging environment, services-based businesses are still hanging on to their workers and likely doing some moderate hiring,' he added. The pound was quoted up at 1.3566 dollars late on Wednesday afternoon in London, compared to 1.3499 dollar at the close on Tuesday. The euro stood higher at 1.1425 dollars against 1.1385 dollars. The yield on the US 10-year Treasury narrowed sharply to 4.38% from 4.46% on Wednesday. The yield on the US 30-year Treasury narrowed to 4.90% from 4.97%. On the FTSE 100, Babcock International gained 4.3% amid further consideration of the UK defence spending review this week. On the FTSE 250, discoverIE Group jumped 15% after reporting higher profit and an increased dividend. The Surrey-based designer and manufacturer of electronic components for industrial applications said pretax profit was £32.0 million in the financial year ended March 31, up 44% from £22.2 million a year ago. The company recommended a final dividend per share of 8.60p, up 4.2% from 8.25p a year ago. This took the total payout to 12.5p, up 4.2% from 12.0p. But B&M European Retail struggled, falling 14% as its annual results failed to inspire investors. The Luxembourg-based retailer said pretax profit fell 13% to £431 million in the 52 weeks to March 29 from £498 million a year prior, hurt by higher interest and finance costs. B&M, which has 777 stores in the UK and 135 in France, as well as 343 Heron Foods and B&M Express shops, flagged heightened cautiousness to spend among consumers, and 'very subdued' garden spending due to poor weather at the start of its financial year. Russ Mould, at AJ Bell, said the shrinking profits 'frame a poor year for B&M'. 'The discount retailer blamed challenging market conditions, yet its value-led business model should have thrived in a period where consumers were watching their pennies,' he said. The price of gold firmed to 3,374.32 dollars an ounce on Wednesday against 3,349.93 dollars on Tuesday. Brent oil was lower at 64.65 dollars a barrel at the time of the London equities close on Wednesday, compared to 65.73 dollars on Tuesday. The biggest risers on the FTSE 100 were Babcock International, up 44p at 1,066p, Games Workshop, up 530p at 15,950p, Antofagasta, up 56.5p at 1,850p, Hiscox, up 33p at 1,310p and Anglo American, up 53.5p at 2,233.5p. The biggest fallers on the FTSE 100 were Marks & Spencer, down 7.9p at 366.7p, BP, down 6.8p at 358.5p, Haleon, down 6.1p at 399p, Hikma Pharmaceuticals, down 30p at 2,100p, and Centrica, down 2.3p at 161.7p. Contributed by Alliance News 登入存取你的投資組合
CNBC
35 minutes ago
- CNBC
Tesla crash video raises FSD concerns ahead of Austin Robotaxi launch
CNBC's Deirdre Bosa joins 'Money Movers' to discuss on Tesla's Robotaxi launch following a fatal accident in its self driving vehicle.
