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