North American News
Two day losing streak for the major US indices
- Dow industrial average the biggest loser.
The US major indices are ending the day with declines on the day in an up and down session. The Dow led the declines thanks to a sharp decline in Caterpillar shares after their earnings report disappointed. Caterpillar shares fell $11.35 or -5.82% at $183.51. Other losers today in the Dow included:
- Boeing -3.46%
- Intel, -2.57%
- Visa, -2.43%
- Nike, -2.22%
A look at the final closing numbers shows:
- Dow fell -402.25 points or -1.23% at 32396.18
- S&P fell -27.44 points ro -0.67% at 4091.20
- Nasdaq fell -20.21 points or -0.16% at 12348.77
- Russell 2000 fell -0.86 points or -0.05% at 1882.44
After the close:
AMD is disappointing:
- EPS $1.05 vs $1.03 et
- Rev 6.55B vs 6.53B est
The bad is that they guided lower for the Q3 at 6.5 to 6.9B vs 6.81B
Starbucks earnings:
- EPS. $0.84 vs $0.75
- Rev $8.15B vs $8.11B est.
Paypal
- Rev 6.8B vs 6.78B est
- EPS $0.93 vs $0.86 est
Commodities
Silver dives below $20.00 on risk-aversion as US bond yields climb
- Silver price drops on high yields as Fed policymakers push back against a dovish tilt.
- US House Speaker Pelosi’s visit to Taiwan turned sentiment sour.
- Silver Price Forecast (XAGUSD): Despite rallying $2 in the last five days, the bias is negative.
Silver price slides due to US Treasury yields rising as Fed officials pushed back markets’ expectations of a US central bank “dovish” pivot, which traders misread. At the same time, geopolitical jitters fueled flows towards safe-haven assets, which boosted the greenback. At the time of writing, XAGUSD is trading at $19.96.
Risk aversion originated from the visit of US House Speaker Nancy Pelosi, which rattled the financial markets. US equities are down, and the greenback is firm, as shown by the US Dollar Index at 106.183, up almost 0.80%. Meanwhile, US Treasury yields soared on Fed speaking, 16 basis points, yielding 2.743%, a headwind for precious metals prices.
silver drops on high yields and Fed speaking
Unleashed Fed officials have begun to cross wires led by San Francisco Fed President Mary Daly, saying that the Fed is “nowhere near” done in fighting inflation and added that “it would be premature to unwind all of that (Fed tightening) and say the job is done.”
Late in the morning, the Chicago Fed President Charles Evans said that going 50 bps “is a reasonable assessment, but 75 bps could also be okay.”
Loretta Mester, Cleveland’s Fed President, said that she has not seen inflation cool at all and is committed to bringing it under control. She added that she wants to see compelling evidence that inflation is moving down on a sustainable basis.
Data wise, US labor market data, namely JOLTs Job Openings for June, rose to 10.7 million, less than 11 million estimated by the streets. That suggests the labor market is easing amid growing economic pressures.
OPEC considers modest oil-production increase – report
- WSJ report
OPEC meets tomorrow so the leaks will be non-stop now.
The latest is from The WSJ, which reports that OPEC and its allies “are considering either a modest increase in oil production or maintaining output at current levels.
“They need to find a balance between the U.S. and Russia,” said an OPEC delegate.
EU News
European equity close: Declines but safe Pelosi visit undoes some damage
- Closing changes for the main European bourses
- Stoxx 600 -0.2%
- German DAX -0.2%
- UK FTSE 100 -0.1%
- French CAC -0.3%
- Italy MIB -0.3%
- Spain IBEX +0.2%
Other News
Taiwan’s Defense: China attempts to threaten our key ports and cities with drills
- Threat from China drills to begin on August 4
Taiwan’s Defense Ministry:
- China attempts to threaten are key ports and cities with drills around Taiwan
- express serious condemnation over Chinese drills
- Chinese drills aimed to psychologically intimidate citizens
- as a determination, ability and confidence to safeguard security and Taiwan citizens should feel reassured and support the Army
- military is closely monitoring situation and has reinforced alertness
Taiwan is not out of the woods yet. Is it saber rattling or is it a mirror of Russian military drills?
Cryptocurrency News
MATIC Price Prediction: The knife you’ll want to catch
- MATIC price shows bearish and bullish divergence on intra-hour time frames.
- MATIC Price shows low volume amidst the current sell-off.
- Invalidation of the uptrend should remain at 0.54.
MATIC rice has been one of the best performers in the crypto space. The technicals suggest one more wave up towards $1.20 is a high probability, but a decline towards $0.69 remains in the cards.