Daily markets: markets looking for direction

The big picture of today

Asian stock indices ended the last week of trading for the week mostly in the red with modest declines recorded in Japan’s Nikkei, Hong Kong’s Hang Seng and China’s Shanghai Composite. While India’s Sensex ended the day up 1.1%, South Korea’s Kospi fell 1.2% amid lingering concerns over the spread of the Delta variant and the continued impact of the shortage of semiconductor chips.

At midday, European stock indices were mixed and US futures were pointing to a mostly positive open later this morning. With only minor economic data to release later today and only a modest number of companies reporting quarterly results, we are probably in one of the calmest trading days in recent memory. We believe investors will take the time to review the sea of ​​corporate earnings over the past few days and weeks, doing the same for key economic data from the past two weeks. Given the increase in the number of Delta cases and increasingly cautious comments from companies along with input cost warnings, we believe the next few days will see some reshuffle in BPA’s forecast.

With a sweltering heat wave hitting much of the United States, we wish these readers the best of luck in staying cool until temperatures approach more normalized levels. Consolidated Edison (ED) calls on New York City customers to conserve energy as the heat wave could pose a serious “danger” to the city’s fragile power grid. Stay safe, readers, and we’ll see you here again on Monday as we leave the “scorching summer days” behind.

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International economy

Export prices to South Korea rose 1.69% year-on-year in July after rising 13.0% in June. Import prices rose 19.2% from 14.4% year-on-year in June.

France’s inflation rate rose 1.2% year-on-year in July, from an 18-month high of 1.5% in June, matching consensus forecasts.

Spain’s inflation rate climbed to 2.9% year-on-year in July from 2.7% in June, which also meets consensus expectations.

Domestical economy

Perhaps vaccinations not only induce an immune response, but also boost entrepreneurship in the United States, with 3.61 million commercial applications so far this year compared to 2.6 million at the start of the year. same period last year. It is estimated that 2.74 million more trade applications were filed over the past two years compared to what would have occurred under more normal conditions.

Wednesday’s CPI was weaker than expected, but yesterday’s Producer Price Index (PPI) saw prices rise 1.0% in July, faster than the expected increase of 0, 6% with an annual rate reaching 7.8%.

Initial jobless claims stood at 375,000 as expected, a decrease of 12,000 from the revised upward level of 387,000 last week (previously 385,000). This is the third consecutive drop in initial claims and places them at the lowest level since the start of the pandemic.

The median selling prices of existing single-family homes nationwide rose 22.9% in the second quarter to $ 357,900 from a year ago, a record increase for the series dating back to 1968.

Later today, we’ll have import and export prices for July as well as the University of Michigan consumer sentiment report for August and the usual weekly Baker Hughes oil rig tally.


Yesterday, the S&P 500 and the Dow Jones Industrial Average hit another pair of intraday highs and closing highs despite trading after the July PPI report. The Nasdaq Composite rose 0.4% while the Russell 2000 lost 0.3%. While there were more declining issues than advancing issues on both the NYSE and the Nasdaq, major stock market indices benefited from a return to large-cap growth stocks, particularly Apple (AAPL) and Microsoft (MSFT). The 10-year US Treasury yield edged down to 1.352% yesterday, Brent crude fell 0.6%, while gold rose 0.3% and Bitcoin gained 2.1% and Ethereum fell. added 2.4%.

Actions to watch

Ahead of the opening of U.S. stock markets this morning, investors will flip through a number of quarterly earnings reports, including those from Honest Business (HNST).

Actions of Airbnb (ABNB) traded last night despite better-than-expected earnings and EPS for the June quarter as it warned the Delta and other variants would continue to impact travel behavior, making year-over-year comparisons over the other for nights and experiences booked and the more volatile and non-linear raw value of the booking. That said, the company expects this quarter’s revenue to be its highest quarterly revenue on record and deliver the highest Adjusted EBITDA and margin on record.

Walt Disney (DIS) reported a June quarter that beat revenue forecast by 1%, with Disney + subscribers beating expectations and the company’s parks activities returning to profitability, leading its EPS for the quarter to crush expectations consensus. Disney + subscribers rose to 116 million at the end of the June quarter from 57.5 million a year ago; ESPN + subscribers reached 14.9 million from 8.5 million in the quarter last year; and Total Hulu subscribers reached 42.8 million, up from 35.5 million. Revenue from Disney Parks, Experiences and Products for the quarter increased to $ 4.3 billion from $ 1.1 billion in the previous year quarter. According to the chief financial officer of the company, theme park bookings “remain strong” with theme park spending per guest actually higher than in 2019. Another area of ​​strength for the company is cruises. , with “strong bookings” and a return to travel to the US next week in addition to existing UK crossings.

Turnover for the June quarter to DoorDash (DASH) jumped 83.1% yoy to $ 1.24 billion, beating the consensus of $ 1.10 billion while the company’s adjusted EBITDA for the quarter increased 43% yoy to 113 million dollars exceeding the guided range of 0 to 100 million dollars. Although the company is recognized for its position in home catering, she said that “the dynamic early demand signals in the non-restaurant categories have increased our confidence in their potential. We intend to increase our level of investment in these categories during the second half of 2021. expectations included in our advice.

Actions of Pilgrim’s Pride (PPC) are up in pre-market trading following a proposal by JBS Brazil to acquire all outstanding shares of common stock that are not owned by JBS Brazil or its subsidiaries for a purchase price of 26.50 $ per share in cash.

July video game sales are expected to pick up today, with results showing market share gains or losses among Sony (SONY), Take-Two Interactive (TTWO), Activision Blizzard (ATVI), Nintendo (NTDOY), Electronic Arts (EA), and others.

Facebook (FB) could be forced to sell gif creation site Giphy after an investigation by the UK competition regulator found its takeover could hurt competition between social media companies and the digital advertising market. Facebook is also joining the ranks of Amazon (AMZN), Lyft (LYFT), and other companies that have delayed the planned return of U.S. employees to their offices until January 2022.

Reports suggest the launch of Boeing (BA) Starliner could be delayed for several months, as the space capsule may need to be removed from the top of the rocket for repairs.

Hive Blockchain Technologies (HVBT) ordered 1,800 Antminer S19j Pro miners from Bitmain Technologies. These miners are the first of Hive’s 2022 mine purchase program and will be delivered in 6 equal installments of 300 miners, from January 2022 to June 2022.

After today’s market closes, no company is expected to release quarterly results. Those looking to get a glimpse of the revenue reports to be had in the coming days should visit Nasdaq earnings calendar page.

On the horizon

  • August 16: NY Empire State Manufacturing, Long-Term ICT Net Flows, Overall Net Capital Flows, Foreign Bond Investment
  • August 17: NAHB Housing Market Index, Retail Sales, Industrial Production, Business Inventories
  • August 18: Building permits, housing starts, EIA energy stocks, FOMC report
  • August 19: Philadelphia Fed manufacturing index, weekly jobless claims
  • August 23: Chicago Fed National Activity Index, Markit Manufacturing, Services and Composites PMI, Existing Home Sales
  • August 24: New Home Sales, API Crude Oil Inventory Report
  • August 25: durable goods orders, EIA energy stocks
  • August 26: Unemployment claims, Q2 GDP growth, corporate profits
  • August 27: Personal Income and Expenditure, Wholesale Inventories, PCE Price Index, Merchandise Trade Balance, University of Michigan Consumer Sentiment Report
  • August 30: Pending home sales, Dallas Fed Manufacturing
  • August 31: S & P / Case-Shiller Home Price Index, Chicago PMI, Conference Board Consumer Confidence, API Crude Oil Inventory Report

Thought of the day

“If only it could always be like this – always summer, always alone, the fruit always ripe. – Evelyn waugh


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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