North American News
Dow Continues 9-Day Winning Streak, While Nasdaq Plunges Over 2% in Market Turmoil
- The bad news is the NASDAQ index tumbles over 2%
The good news today in the US stock market is the Dow Industrial Average closed higher for the 9th consecutive day. The bad news is the Nasdaq index tumbled over 2% today. The S&P also moved lower.
The final numbers are showing:
- Dow industrial average rose 163.97 or 0.47% at 35225.17. The Dow Industrial average reached a high of up 311.55 points and a low of up 30.76 points
- S&P index fell – 30.85 or -0.68% at 4534.86. At session lows the S&P index was down -38.15 points
- NASDAQ fell -294.72 points or -2.05% at 14063.30.At the session lows the NASDAQ index was down -327.39 points
With one day to go in the week, the NASDAQ index is now down:
- Dow Industrial Average is up 2.08%
- S&P index is holding onto a gain of 0.65%
- NASDAQ index is now down -0.36%
IN after hours earnings releases:
PPG Industries Inc (PPG) Q2 2023 Earnings:
- EPS: 2.06, expected 2.13
- Revenue: $4.87 billion, expected $4.84 billion
- Noted: They raised the full-year guidance
- Shares are trading down -2.48% in after-hours trading
Capital One Financial Corp (COF) Q2 2023 Earnings:
- EPS: 3.52, expected 3.23
- Revenue: $9.01 billion, expected $9.12 billion
- Shares are trading down -1.51% in after-hours trading
Intuitive Surgical Inc (ISRG) Q2 2023 Earnings:
- Adjusted EPS: 1.42, expected 1.33
- Revenue: $1.76 billion, expected $1.74 billion
- Despite the beat, shares are trading down -6.15% in after-hours trading
CSX Corp (CSX) Q2 2023 Earnings:
- EPS: 0.49, expected 0.49
- Revenue: $3.7 billion, expected $3.73 billion
- Shares are trading down -3.59%
US treasury auctions $17 billion of 10 year treasury TIPS at a high yield of 1.495%
- WI level at the time of the auction
- High yield 1.495%
- WI level at the time of the auction 1.546%
- Tail -5.1 basis points
- Bid to cover 2.51X (previous 2.31X)
- Directs 12.67% vs previous 5.9%
- Indirects 85.84% vs previous 76.4%
- Dealers 1.49% vs previous 7.7%
US initial jobless claims 228K vs 242K estimate. Continuing claims 1.754M vs 1.729M est.
- US initial jobless claims and continuing claims for the current week
- Prior week initial jobless claims 237K
- Initial jobless claims 228K versus 242K estimate
- 4-week moving average dipped to 237.5K vs 246.75K last week
- Continuing claims 1.754M versus 1.729M estimate
- prior week continuing claims 1.729M revised to 1.721M estimate
- 4-week moving average continuing claims dipped to 1.7315M versus 1.7333M last week.
30yr fixed rate mortgages 6.78% in the week ending July 20th (prev. 6.96%) – Freddie Mac
- Mortgage rates see a fall away from the 7% area
Freddie Mac is reporting the 30 year fixed rate mortgage rate fell to 6.78% in the week ended July 20. Last week the level came in at 6.96%.
The move lower is a reaction to the lower yields in the treasuries as a result of lower than expected CPI data last week.
Philadelphia Fed July manufacturing business index -13.5 vs -10.0 expected
- Philadelphia Fed business index for July 2023
- 11th consecutive negative month for the Philly Fed index
- Six-month index +29.1 versus +12.7 last month
- Capex index +8.6 versus +9.9 last month
- Employment index -1.0 versus -0.4 last month
- Prices paid +9.5 versus +10.5 last month
- New orders -15.9 versus -11.0 last month
US June existing home sales 4.16M vs 4.20M expected
- US June 2023 existing home sales data
- Prior was 4.30M
- Inventory of homes for sale 1.08M vs 1.08M prior
- Supply at months 3.1 months vs 3.0 months prior (balanced is considered 6 months)
- Median sale price $410.2K vs $396.1K prior
- Median sale prices -0.9% vs -3.1% y/y prior
Teranet June Canada house price index +2.2% m/m
- The latest housing survey from Teranet and National Bank
- Prices up a seasonally adjusted 2.2% in June
- Prices up 2.6% non-seasonally adjusted — fourth consecutive increase
- Index down 5.1% y/y
Commodities
Gold drops from 7-week high as US economic data fuels Fed rate hike fears
- US Initial Unemployment Claims data came in at 228K, better than forecasts and previous figures of 240K and 237K, respectively.
- US Existing Home Sales for June declined by 3.3%, with sales at 4.16M, below both the May figures of 4.3M and analyst forecasts of 4.2M.
- Market odds for a Fed rate hike beyond the July meeting increase to 32.2%, up from last week’s 19.8%, as per the CME FedWatch Tool.
Gold price slides from 7-week highs at $1,987.42, as economic data from the United States (US) reignited fears the US Federal Reserve (Fed) would remain tightening conditions past the July meeting.Hence, US Treasury bond yields soared, a headwind for the yellow metal. The XAU/USD is exchanging hands at $1,969.30, down 0.35%.
WTI crude futures settle at $75.63
- Up $0.28 or 0.37%
WTI crude futures are selling at $75.63. That’s up to $0.28 or 0.37%. The high price today reached $76.15. The low price was at $74.52.
Technically the price is settling near the middle of the 100 day moving average below at $73.67, and the 200 day moving average above it $77.22. The price has closed between those levels over the last 8 trading days.
Silver retreats on rising US yields
- The XAG/USD dropped more than 1% on Thursday below the $25.00 mark.
- US Jobless Claims in the second week of July came in lower than expected.
- Rising US Treasury yields weight on the precious metals.
Silver spot price dropped towards the $24.80 area, recording 1.28% losses on Thursday amid a recovery of the USD. Despite weak Manufacturing and Housing data, lower-than-expected Jobless Claims fueled a rise in hawkish bets on the Federal Reserve (Fed) and US Treasury yields, making the grey metal lose interest.
EU News
European equity close: Good gains across the board
- Closing changes in Europe
- Stoxx 600 +0.5%
- German DAX +0.6%
- Francis CAC +0.8%
- UK’s FTSE 100 +0.8%
- Spain’s Ibex +0.7%
- Italy’s FTSE MIB +0.4%
Eurozone consumer confidence flash for July -15.1 vs -16.0 estimate
- Eurozone consumer confidence for July 2023
- Prior -16.1
- Consumer confidence in the Euro area flash for July 2023 -15.1 vs -16.0 estimate
- The EU confidence moved up to -16.1 (up 1.1)
Eurozone May current account balance €9.1 billion vs €4.0 billion prior
- Latest data released by the ECB – 20 July 2023
- Prior €4.0 billion; revised to €3.8 billion
France July business confidence 100 vs 100 prior
- Latest data released by INSEE – 20 July 2023
- Prior 100
- Manufacturing confidence 100
- Prior 101; revised to 100
- Services confidence 102
- Prior 102
Germany June PPI -0.3% vs -0.4% m/m expected
- Latest data released by Destatis – 20 July 2023
- Prior -1.4%
- PPI +0.1% vs 0.0% y/y expected
- Prior +1.0%
Switzerland June trade balance CHF 4.82 billion vs CHF 5.48 billion prior
- Latest data released by the Federal Statistics Office – 20 July 2023
- Prior CHF 5.48 billion; revised to CHF 5.44 billion
BofA trims euro area growth forecast for the year to 0.3%
- That’s a 0.1% revision lower, with the firm citing the region’s exposure to a slowing Chinese economy
They also moved to trim its 2024 growth forecast for the euro area to 0.7%, down from 0.8% previously.
Other News
Japan government cuts economic growth forecast for the current fiscal year
- But they do see inflation exceeding the BOJ’s 2% target in the latest projections released today
- Growth forecast for FY2023/24 seen at 1.3% (previously 1.5% in January)
- Growth forecast for FY2024/25 seen at 1.2%
- Inflation forecast for FY 2023/24 seen at 2.6% (previously 1.7%)
- Inflation forecast for FY 2024/25 seen at 1.9%
Japan PM Kishida says must ensure sustained exit from deflation
- Remarks by Japan prime minister, Fumio Kishida
- Must create a society where wage hikes become a norm
- Must be mindful of impact of any inflation overshoot on real income
U.S. Ambassador to China Hacked in China-Linked Spying Operation
- Spying campaign also is said to have compromised a State Department official who oversees East Asia
Hackers linked to Beijing accessed the email account of the U.S. ambassador to China, Nicholas Burns, in an attack that is believed to have compromised at least hundreds of thousands of individual U.S. government emails, according to people familiar with the matter.
Bank of America lowered their 2023 China GDP forecast to 5.1% from 5.7% previously
BoA jumping on board with the GDP projection cuts for China
Cryptocurrency News
Bitmain to launch Filecoin token mining machines, venture announcement rescues FIL holders from 10% losses
- Bitmain has announced the launch of Filecoin mining machines, marking its first foray into the FIL ecosystem.
- With monthly delegated staking service fees as low as 0.5%, traders will earn more with little computational energy.
- The announcement has attracted bulls back to the FIL market, breaking the 10% fall that began on July 14.
Bitmain, the world’s leading manufacturer of cryptocurrency mining servers via its ANTMINER branch, has revealed plans to develop Filecoin token mining machines, set to premiere in the market on July 21. The venture has inspired a wave of optimism in the FIL market, causing a resurgence among the bulls to cut short the 10% losses streaming out since mid-July.
Bitmain landmark announcement offers support for Filecoin price
Bitmain, a giant Bitcoin mining machines manufacturer and renowned miner, has announced its first foray into the Filecoin ecosystem, marked by the development of FIL token mining machines. Based on the announcement, individual units will retail for $38,888 and have a hash rate of up to 4,300T each.
Hong Kong’s largest online bank competes with banking giants for Web3 market
- Hong Kong’s ZA Bank has 30-50 licensed crypto entities queuing up to open accounts.
- China SAR’s largest online bank to offer compliant entities financial services while traditional banks hit AML roadblocks.
- Licensed crypto entities in Hong Kong can avail of services in fiat currencies, the virtual bank does not custody cryptocurrencies.
Hong Kong’s banking giants recently delayed the onboarding of crypto entities, awaiting further clarity and updates to Anti-Money Laundering regulation. However, virtual bank ZA is working on welcoming licensed web3 entities in Hong Kong, looking for fiat banking services.
Hong Kong’s online bank works on offering services to complaint entities
China’s Special Administrative Region’s (SAR) largest online bank told Colin Wu, a Chinese reporter, how the bank is working on welcoming licensed web3 entities to Hong Kong. ZA bank currently has 30-50 crypto clients lined up for onboarding. The virtual bank will offer fiat-based financial services to crypto clients since the bank does not offer custody for virtual assets yet.
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