Tesla and Netflix earnings disappointed yesterday, Tesla closed the day at 291 and dropped to 279 after hours, Netflix closed at 477 and dropped to 438. Goldman Sachs confirmed weak expectations but a more positive outlook let shares rise by app 1%.
Indexes moved little yesterday and ended up slightly higher, The US500 is now trading at 4.559, the US Tech 100 NAS at 15.762 and the GER40 16.105. The USD Index recovered and could rise above the 100 again strongly driven by a sharp fall of the British Pound.
A lower than feared CPI (7.9% vs 8.2% expected) caused a massive shift in rate expectations the peak rate expectations. Where last week the highest rate was predicted at 6.17% in May, we are now looking at 5.8% in December. GBPUSD is now 1.2929, EURUSD 1.1214 and USDJPY 139.44. Gold and Silver remain strong at 1981 and 25.15.
China left rates unchanged as widely expected, stimulus measures are seen to be less broad and more targeted, most outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. China cut both LPRs in June to boost the economy acc to Reuters.
ABB and TSMC beat expectations this morning.
Developments in the Black Sea should be watched closely where Russia is threatening shipping: Moscow warned that ships heading to Ukraine's Black Sea ports could be considered military targets. Wheat in the US jumped the most since the start of the invasion by 8.5%.
The Russian Embassy in Bagdad has been attacked by a mob and fires bave been set.
It is a bit unclear where the trading focus will be, there is little top line data today, the Fed is in the blackout period and important earnings are in. it could be a quiet day or we may see technical moves.
Thursday July 20
China Loan Prime Rate, US Initial Jobless claims, US Consumer Confidence
Earnings: TSMC, Johnson & Johnson, SAP, Blackstone, CSX, ABB, Freeport-McMoran
Friday July 21
Japan CPI, UK Retail Sales
Earnings. American Express, Schlumberger