FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1728
BTC/USD
42 567.79
GBP/USD
1.3640
USD/JPY
109.4710
USD/CHF
0.9230
USD/CAD
1.2802
EUR/JPY
128.3820

US earnings blockbuster - a massive week for markets


23 July 2021

On earnings, we hear from Tesla (26 July), Apple, Microsoft, and Alphabet (all after-market on 27 July). Facebook (28 July) and Amazon (29 July) - how will the number be digested by traders? From the names seen so far, US quarterly earnings have come in predictably strong. However, they haven’t blown the lights out, with a market trying to understand the macro and downwardly revised global Q3 growth estimates. That should change this coming week and corporate earnings will provide big opportunities on a stock level.

Notably, we look for Tesla’s and Facebook’s numbers, as these a core trader favourites. However, the big day of earnings takes place in the post-market on Tuesday 27 July. It's not often we get three of the world’s biggest names reporting in a 30-minute period, and if we add Visa, we’re looking at close to $7t in market cap reporting here.

This equates to around 20% of the S&P 500 market cap, so this brings in index traders too – so if trading the NAS100, US30 or US500, the 60-minute period after the US cash session close (6:00am AEST) is of interest. When the market has an implied move (on earnings) in Apple of 4.2%, we could see fireworks both at a single stock level and in the various US indices – get them on the radar.

I can’t go past the incredible bull trend in Alphabet (Google) and it's easy to see why the market has a love affair with this name – can the earnings meet the price action? Apple will likely get the lion’s share of interest from equity traders on this day, and having dropped for the past three quarterly earnings Apple has lost its status as an earnings darling – can it make it a fourth? By way of expectations while we look at trends across the business and geographies, as well as product development these are the consensus numbers to be concerned with:

The implied move in Microsoft, Alphabet and Visa sits at 2.2%, 4.1% and 2.7%, so that is a lot of market cap, and big weights all expected to move in a very short space of time. Of course, there is no certainty they will all move in the same direction, so we will see offsetting factors at an index level, but it could get a little wild in that hour. It all leads to lots of opportunities across markets, regardless of timeframe or strategy.

July FOMC meeting

The marquee event of the coming week is the FOMC meeting (Thursday 4:00am AEST / Wednesday 1pm BST), followed by Jay Powell’s press conference 30 minutes later. Since the June meeting, US core CPI has pushed up from 3.8% to 4.45%, and wages are tracking at 3.6%. However, the labour market has only modestly improved, inflation expectations are a touch lower and broad financial conditions are roughly unchanged.

It doesn’t feel like we’re in for a major announcement that shocks the US rates market too intently, causing major gyrations in second-order derivates like the USD, equities and gold. Especially given they have said they will give notice “well in advance”, which suggests they will possibly provide a series of progressively stronger hints that they plan to taper the pace of bond purchases. So, when we finally hear the formal announcement, the market will be so well prepared that it doesn’t blink – or at least that the plan.

Nuance matters though, and single words move markets – or in the case of the June FOMC it was the projections for the fed funds rate – the ‘dot plot’ – which kicked some volatility into markets, with calls for two hikes in 2023. It does not feel like Powell will upset the markets, but any narrative that builds a strong consensus that September could be the date for a formal announcement for tapering, could bring out sellers in US Treasuries (yields higher), which could inject life into the USD and weigh on gold. Personally, I see the non-farm payrolls print on 6 August as the next big US-centric event, where the consensus should build to expect it to be a biggy.

#source

Related

Stock Futures Trade Sharply Lower
Stock Futures Trade Sharply Lower

Futures in the United States and in Europe are trading sharply lower as investors worry about the domino effect of Evergrande’s massive plunge on the Chinese property market..

21 Sep 2021

Oil market: the unbalanced demand and supply
Oil market: the unbalanced demand and supply

Oil prices climbed to higher grounds in the most recent daily sessions adding further to its upward momentum formed so far in September. The Oil market is running...

21 Sep 2021

US Markets lost major support, Asian Indices are melting
US Markets lost major support, Asian Indices are melting

Global markets closed last week on the back foot, and no significant positive factors emerged in Asian trading, increasing the flight to safety. The Hang Seng lost...

20 Sep 2021

US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.