Despite the helicopter crash in Iran which killed its President and continuing unrest in the Middle East, the stock market broadcast relative calm as the trading week opened on Monday.depositphotos Yesterday the S&P 500 closed at 5,308, up 5 points, the Dow closed at 39,807, down 197 points and the Nasdaq Composite closed at  16,795, up 109 points. Chart: The New York Times Most actives were led by Tesla (TSLA), down 1.4%, followed by Carnival Cruise Lines (CCL), up 7.3% and Advanced Micro Devices (ADM), up 1.1%. Chart: The New York Times In morning futures action S&P 500 market futures are up 2 points, Dow Market futures are down 2 points, and Nasdaq 100 market futures are down 11 points.TalkMarkets contributor Peter Mathers offers the latest Elliott Wave Technical Analysis: Bitcoin Crypto Price News For Tuesday, May 21. Unsplash “Overall, Bitcoin is still in an uptrend. It is currently in a period of correction in the fourth wave, which appears to be complete. Therefore, it is an opportunity for us to join the trend once again. Look for opportunities to open long positions…  Wave IV may be complete and the Price increase again in Wave V. The price is above the MA200, indicating an uptrend. The Wave Oscillator shows bullish momentum.”Contributor Stephen Innes  in an “In the Spotlight” piece says A Sleepy Macro Week Could Get A Shot Of Adrenaline When Nvidia Reports.”An otherwise sleepy macro week could get a shot of adrenaline mid-week when Nvidia (NVDA) reports its Q1 results. This marks the anniversary of the “guidance heard ‘around the world,” when Jensen Huang declared that the future might have arrived early. Since then, the narrative around Nvidia and AI has dramatically shifted. Expectations are high, and the guidance is crucial. Revenue growth has been meteoric, and everyone is eager to see if the trend continues.It’s worth reiterating, even though it might seem obvious: the entire rally, the macroeconomic landscape, everything hinges on one key player, Nvidia. depositphotos A significant portion of the valuation premium for US mega-caps is intricately linked to the AI narrative. Countless optimistic macroeconomic scenarios envision a productivity surge powered by AI. Projections about AI capital expenditures shape optimistic forecasts for various companies seen as potential beneficiaries in future phases of technological advancement. The ripple effects are extensive.Much like the early days of Apple Inc. (AAPL), many in the financial world believe that the AI investment cycle is still in its nascent stages. The AI-led rally showed its strength as Nvidia shares surged over 2% on Monday. This boost came following multiple bullish analyst calls emphasizing the company’s leading market position. Additionally, several Wall Street firms raised their price targets on the chipmaker ahead of its earnings report, indicating that shares could potentially climb up to 30% from their current levels.”The Staff at Schaeffer’s Research confirm Nasdaq Scores Record Close As Tech Stocks Soar.”The Nasdaq held onto its midday triple-digit lead, closing at a new record high thanks to a resurgent tech sector. The S&P 500 logged a modest win of its own — and closed two-hundredths of a point (0.02) from a record close — while the Dow lagged the broader market with a 196-point loss. Against this backdrop, Wall Street’s “fear gauge,” the Cboe Volatility Index (VIX) turned in only its second win of the month.”Stats that sing…TM contributor  Bruno Venditti provides European Union data and graphics in Mapped: The Top Export In Each EU Country.  “The European Union exports over $6 trillion in products annually. The bloc boasts a diversified economy that encompasses fuel and mineral industries, cars, vaccines, and technology. In this map, we display European Union countries’ top exports as of 2022. Belgium, Bulgaria, Croatia, Finland, Greece, Lithuania, Sweden, and the Netherlands have petroleum gas or refined petroleum as their top export product.The Netherlands exported $68.1 billion worth of refined petroleum in 2022, ranking third among the largest exporters globally. The country is home to BP Rotterdam Refinery, the biggest oil refinery in Europe.  With well-known car brands such as Volkswagen, BMW, Mercedes-Benz, Audi, and Porsche, Germany alone generates around $150 billion per year from car exports.Other products help diversify the EU economy. France’s top export is planes, helicopters, and/or spacecraft, while Italy and Denmark excel in the packaged medicines industry. Ireland has a significant pharmaceutical industry, hosting major companies such as Pfizer, Johnson & Johnson, Merck, and Novartis.”Contributor Frank Holmes looks into How Biden’s New Tariffs On China Could Impact The U.S. Auto Industry.”The Biden administration announced significant tariff increases on China last week, targeting roughly $18 billion in strategic industries, with a sharp focus on electric vehicles (EVs). These tariffs, which quadruple to 100% on Chinese-made EVs, are designed to counter China’s unfair trade practices and overcapacity while boosting U.S. industries…The world’s second-largest economy was a minor player in car exports just four years ago, shipping about 1 million low-priced vehicles annually to less affluent markets. Today, China has surged past Japan and Germany to become the world’s biggest car exporter, with shipments running at an annual pace of nearly 6 million vehicles. China’s car exports, in fact, hit a record high in April, with a year-on-year increase of 38%…Historically, China has benefited from substantial subsidies, a key gripe from American and European business leaders and politicians. Chinese subsidies relative to GDP are about three times higher than in France and about four times higher than in Germany or the U.S., according to a report by the Germany-based Kiel Institute for the World Economy. This is what allows companies to price their vehicles at such artificially low costs…President Biden’s tariffs aren’t just about pushing back against China’s unfair trade practices; they’re also about protecting American industries. Through the Chips and Science Act and the Inflation Reduction Act, Biden has already provided support to American companies in sectors like semiconductors and renewable energy. The tariff increases on China are an extension of that protection, ensuring that American businesses can compete on a more level playing field…With EVs gaining in popularity across the globe and governments spending to build out wind and solar facilities, we’re seeing prices for key metals and materials start to break out. Copper futures have recently hit a record high, while nickel prices are breaking out on near-term supply concerns. Unrest in New Caledonia, a French territory in the South Pacific and the world’s number three nickel producer, has disrupted output of the white metal, which is used in the production of batteries. Nickel traded above $21,000 per metric ton last week for the first time in about a month…Biden’s sweeping tariff increases on China are a calculated move to protect American industries, counter unfair trade practices…While these measures are necessary to level the playing field, they come with challenges and potential unintended consequences.”See the full article for charts which illustrate Holme’s remarks. depositphotos In the “Where To Invest Department” Sweta Killa finds some ETFs To Bet On Analysts’ Bullish Forecast For S&P 500.”One of Wall Street’s most prominent bears, Morgan Stanley (MS), turned positive on the outlook for U.S. stocks by lifting the price target for the S&P 500 to 5,400 from 4,500. It now expects the index to rise 2% this year, a major turn in its view that the benchmark will tumble 15% by December.Hopes for rate cuts, continued AI adoption as well as strong earnings growth projections are expected to drive the S&P 500 further…SPDR S&P 500 ETF Trust (SPY)SPDR S&P 500 ETF Trust tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7% of the assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector, while financials, healthcare and consumer discretionary round off the next three spots with a double-digit allocation each.SPDR S&P 500 ETF Trust charges investors 9 bps in annual fees and trades in an average daily volume of 60 million shares. It has AUM of $525.8 billion and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.iShares Core S&P 500 ETF (IVV)With an AUM of $463 million, iShares Core S&P 500 ETF is much smaller than SPY and less liquid, trading in an average daily volume of 5 million shares. It charges just 3 bps in annual fees, 6 bps less than the State Street product. iShares Core S&P 500 ETF has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.Vanguard S&P 500 ETF (VOO)Vanguard S&P 500 ETF also directly tracks the S&P 500 Index and holds 504 stocks in its basket. It has amassed $448 billion in its asset base and charges investors 3 bps in annual fees. Vanguard S&P 500 ETF trades in an average daily volume of 5 million shares and has a Zacks ETF Rank #1 with a Medium risk outlook.SPDR Portfolio S&P 500 ETF (SPLG)SPDR Portfolio S&P 500 ETF follows the S&P 500 Index and holds 503 stocks in its basket, with a 0.02% expense ratio. It has amassed $36 billion in its asset base and trades in a solid volume of 8 million shares a day, on average. SPDR Portfolio S&P 500 ETF has a Zacks ETF Rank #1.Invesco S&P 500 Top 50 ETF (XLG)Invesco S&P 500 Top 50 ETF follows the S&P 500 Top 50 ETF Index, which measures the cap-weighted performance of 50 of the largest companies on the S&P 500 Index, reflecting the performance of the U.S. mega-cap stocks. Invesco S&P 500 Top 50 ETF has been able to manage assets worth $4.3 billion but trades in a volume of about 1.2 million shares a day on average. XLG charges 20 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.”Caveat Emptor!Have a good week.Peace.depositphotosMore By This Author:Thoughts For Thursday: New Highs Are Here
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