US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a marginally positive note and made a new lifetime high of 2612.15. However, the index witnessed correction from the higher levels in the latter part of the week and closed at 2583.89 with a week till date (WTD) loss of ~0.79 percent on July 15, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed marginal negative movement during the week. On July 15, 2021, the S&P 500 index settled at 4360.03 with a WTD loss of ~0.22 percent, while NASDAQ Composite Index settled at 14543.13 with a WTD loss of ~1.08 percent.

Increasing inflation pressuring the indices at the higher levels.As per the data released by the US Bureau of Labor Statistics, the Consumer Price Index (CPI) increased 0.9 percent in June and registered the largest 1-month change since June 2008. Other economic data released during the week such as the Philly Fed manufacturing index, industrial production, etc. also supported a negative stance for the indices. However, a decrease in the US weekly unemployment claims to 360,000 from 386,000 (revised level) in the prior week limited the downside movement.

Having understood the US market performance over the week, taking cues from major global news, and based on our technical analysis of the Russell 3000 index for the upcoming week, now let us have a look at the two NYSE/ NASDAQ listed stock picks from the technical standpoint. Noted below are our recommendations based on generic insights, entry price, target prices, and stop-loss for Cousins Properties Inc (NYSE: CUZ) and Murphy USA Inc (NYSE: MUSA) for the next 2-4 weeks duration:

Cousins Properties Inc 

Cousins Properties Inc (NYSE: CUZ) is a real estate investment trust. Its a self-administered and self-managed REIT that develops, leases, acquires and manages owns office properties. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

CUZ's prices are sustaining above an upward sloping trend line and formed a bullish engulfing (bullish reversal) candlestick pattern on the weekly chart, indicating the probability of an upside direction. Prices took the support of another downward sloping trend line, further supporting a positive stance. Now a major resistance level for the stock appears at USD 47 and prices may test the level in the short-term (2-4 weeks). 

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~59.72 levels and indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 21-period and 50-period SMA with a positive crossover, further providing support for an upward direction.

Financial Summary:

Summary of the Key Financial Metrics for the past four years for Cousins Properties Inc is as follows:

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, we can conclude that Cousins Properties Inc looking technically well-placed on the chart, and we have a ‘Buy’ rating on the stock. Investment decision should be made depending on an investors’ appetite on upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of our recommendation is as follows:

Murphy USA Inc

Murphy USA Inc (NYSE: MUSA) is a specialty retail company that deals in the marketing of motor fuel products and merchandise. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

MUSA's prices reversed from the lower levels after forming a bullish harami (bullish reversal) candlestick pattern on the weekly chart. Prices also took the support of a downward sloping trend line and recently broke another downward sloping trend line on the upside, further supporting a positive stance. Now a major resistance level for the stock appears at USD 159 and prices may test the level in the short-term (2-4 weeks). A further breakout above UAD 159 backed by the volumes may extend buying in the stock to USD 170 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~56.38 levels and indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 21-period and 50-period SMA with a positive crossover, further providing support for an upward direction.

Financial Summary: 

Summary of the Key Financial Metrics for the past four years for Murphy USA Inc is as follows:

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, we can conclude that Murphy USA Inc is looking technically well-placed on the chart, and we have a ‘Buy’ rating on the stock. Investment decision should be made depending on an investors’ appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of our recommendation is as follows: