News & Analysis

Nasdaq takes another hit, Twitter Intel disappoint; US GDP fails to lift USD; Bitcoin consolidation pattern.

Jul 30, 2018 | Market Updates

Upcoming high impact news:

No high impact news due out today.

Friday’s session saw a continuation of the Tech sector decline, Twitter and Intel lead the Nasdaq lower closing more than 1% in the red. Selling was widespread the Dow Jones and S&P500 finishing in the red. Shares of Intel and Twitter led the charge lower on Friday, falling after the release of their latest quarterly results. Intel dropped more than 8.5% after announcing delays on its next-generation chips. The company did report better-than-expected earnings, however. Twitter, which reported earnings that matched expectations, dropped more than 20% after it said its number of monthly active users fell. – CNBC

Over 50% of S&P 500 companies have reported earnings. Of those companies, 79.8% have reported better-than-expected earnings, according to data from FactSet.

GDP- The Commerce Department said the U.S. economy grew by 4.1% in the second quarter, in line with analyst expectations. White House officials have been indicating the reading will be strong. “You’re going to get a very good economic growth number tomorrow. Big,” White House economic advisor Larry Kudlow said ahead of the release.

“The number at 4.1% is strong, but the whisper number was higher than that,” said Jeff Zipper, managing director of investments at U.S. Bank Private Wealth Management. “I think that’s why you got the non-reaction in the market to it.”

The Dow Jones settled 76.01 pts lower – the S&P500 lost 18.62 pts – The Nasdaq lost 114.72 pts after further negative influences.

European markets ended the week higher by earnings and calmer trade, the DAX gained 51.17 – the FTSE added 38.14 and the Euro Stoxx 50 added 19.82.

Markets have started Monday weaker, the local ASX200 33.80 pts lower. Asian indices are also mainly in the red. The Nikkei -174, the Hang Seng 23.14 pts higher. Markets mainly lower due to tech worries after Friday’s sharp losses. Focus will be moving to tomorrow’s Bank of Japan’s policy meeting.

Oil settled lower on Friday losing 1.3%, posting it’s fourth weekly decline. “That could show some sign of a slowdown in the economy, which could, in turn, affect oil consumption,” said Phillip Streible, senior market strategist at RJO Futures.

USOUSD closed 53 cents lower at 68.58, sellers hitting a low at 67.92. Price trading slightly lower this morning.

Gold closed flat with mixed signals inc a weaker USD after Friday’s GDP data. Price continues to hold around 12220 support. Currencies, the majors continued lower to the Japanese Yen. This morning there’s a fightback on the Yen. The USD failed to get traction post GDP on Friday, the euro stabilized following its biggest one-day loss in a month in reaction to the European Central Bank on Thursday reaffirming its plan to slowly end its accommodative monetary policy.

The greenback gave up initial gains after the U.S. government reported gross domestic product grew at a 4.1% annualized pace in the second quarter, matching the median forecast among economists polled by Reuters.

Very little movement at this point to the USD from risk, the USDCAD has added 16 pips but remains in corrective phase inside a developing downtrend. 1.3040 seen as support. USDJPY 12 pips higher holding a low from previous high 110.90.

Bitcoin is tracking in a consolidation pattern, 8055 support – 8286 resistance. Price flat at this point in the session.

Good trading from Eightcap.

Sources; CNBC – All times are AEST

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.