Wake Up Wall Street (SPX) (QQQ): China crash, big tech boom (AAPL) (MSFT) (GOOGL), Boeing takes off
Here is what you need to know on Wednesday, July 28:
The carnage continued for Chinese-related stocks on Tuesday with sharp falls across the board as a WeChat new registration suspension added to the concern of investors. The Hang Seng at least managed to stabilize overnight, so we may see some bounces today from the more retail-focused Chinese stocks. Big tech earnings continued to smash it with Microsoft, Google, and Apple all coming in well ahead of analyst estimates. Today's reaction by futures and big tech names will give us some good clues as to just how strong this market really is.
The Fed will have its say of course later today, so expect cautious trading until then. Nothing too surprising is expected, but perhaps talk of tapering may get attention. Inflation concerns have been firmly parked by now for equity investors, and the Fed is unlikely to change this view.
Over in the currency market, the dollar is a touch stronger at 1.1790, Gold is at $1,799, and Bitcoin is back above $40,000, holding onto the Amazon #FakeNews-inspired gains. The VIX has been showing some signs of nervousness lately and is poised just below 20, while the put/call ratio spiked 14% yesterday.
See forex today.
European markets are higher with bank stocks boosted by Barclays and Deutsche bank results. The FTSE is +0.3%, Dax +0.5% and Eurostoxx +0.6%.
US futures are flat for Dow and S&P, while the Nasdaq is 0.4% higher after big tech beats.
Wall street top news
US Fed interest rate decision at 1900 UK/1400 NY time.
McDonald's (MCD) smashes EPS and revenue, down 1% premarket.
Pfizer (PFE) beats EPS and revenue, sees covid vaccine sales $7 billion higher than forecast. Also it upped EPS and revenue guidance, more.
Boeing (BA) reports a surprising EPS of $0.40 when a loss of $0.17 was expected. Revenue was just behind, up 5% premarket. more.
Teladoc (TDOC) missed on EPS, revenue in line, and guidance disappoints. Down 9% premarket.
AMD reported after the close on Tuesday, beats on EPS and revenue, up 3% premarket, more.
Google (GOOGL) smashed earnings, up 3.5% premarket, more.
Apple (AAPL) beats EPS estimates by 30%, revenue also ahead but saw supply constraints in Q4 and guidance on slowing growth. Down 0.5%. see more.
Starbucks (SBUX) beats on EPS and revenue and raises guidance, but shares down 3% as it lowers China and international sales growth. more.
Microsoft (MSFT) beats on EPS and revenue, profit up almost 50%, cloud revenue destroys. Up 1% premarket, more.
Bunge (BG) beats on EPS and revenue, ups guidance, shares up 4%.
Spotify (SPOT) beats on EPS and revenue, but average revenue per user down 3% and monthly active users slower than expected. Stock down 4% premarket.
Barclays (BCS) earnings beat, up 3% premarket.
Deutsche Bank (DB) beats on earnings, up 1% premarket.
Wells Fargo (WFC) doubled its dividend, up 0.5% premarket.
Facebook (FB) and Ford (F) release earnings after the close.
MGM Resorts (MGM) upgraded by Goldman Sachs.
Five9 (FIVN): Piper Sandler and Jefferies downgrade.
Sony Group (SONY): Morgan Stanley upgrades.
Upgrades, downgrades, earnings and premarket movers
Source: Benzinga Pro
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
