Morning Brew August 9 2022
Senior Relationship Manager
US Indexes changed little yesterday – maybe giving a false sense of inactivity. While the Indexes all closed within 0.2%, there were some massive moves. Nvidia issued a profit and revenue warning on lower gaming – sales and stocks plunged 6.1%, Palantir fell 14% on a lower guidance while Rivan, Ford and GM could gain on the spending bill with EV funding. Tesla only gained little at 0.7% against the trend.
In FX Gold and silver were the most interesting yesterday – rising to now 1788 and 20.70 from 1775 and 19.92. The USD Index fell slightly to 106.35, EURUSD 1.0202 and GBPUSD 1.2085. USDJPY is at 135. Tomorrows CPI number at 14:30 will be in focus and it seems that traders are betting on a lower number. Silver is approaching the 20.84 resistance which would open the way to 21.50.
Rates are fairly quiet and I would not expect a large move before tomorrow where the German CPI (8:00) could move the European yields and the US CPI the American ones.
Kim Cramer pointed out that key support for Nvidia is 164.78 and a close below would be worrying. https://www.home.saxo/content/articles/equity/ta-nvda-08082022
S&P 500 is facing its key resistance at 4,177. A daily close above there is strong resistance at 4,300. The declining 200 SMA and the medium term falling (black) trend line add to resistance.
However, if the Index cannot close above with-in the next couple of days a correction is likely. A close below 4,073 S&P 500 is likely to retrace down to around 3,922.
Former President Donald Trump announced the FBI raided Mar-a-Lago Monday and broke into his safe
With little on the economic agenda, the day has the potential to be fairly quiet but there is potential for news or earnings related moves like we saw yesterday.
Tesla is looking to split 1:3 on the 25th of August.
- Tuesday: Alcon, Globalfoundries, Roblox, Trade Desk, Coinbase Global, Akamai Technologies, Plug Power, Unity
- Wednesday: Commonwealth Bank of Australia, Vestas Wind Systems, Genmab, E.ON, Honda Motor, Prudential, Aviva, Walt Disney, Coupang, Illumina
- Thursday: KBC Group, Brookfield Asset Management, Orsted, Novozymes, Siemens, Hapag-Lloyd, RWE, China Mobile, Antofagasta, Zurich Insurance Group, NIO, Rivian Automotive
- Friday: Flutter Entertainment, Baidu
- Physically Settled Futures:
- Low Sulphur Gasoil (FPQ2) will expire 10th Aug at 15:00 GMT
- Lean Hogs (HEQ2) will expire 12th Aug at 17:00 GMT
- Expiring CFDs:
- GASOILUKAUG22 will expire 9th Aug at 15:00 GMT
- LEANHOGSAUG22 will expire 10th Aug at 15:00 GMT