Jul 28, 2022 | Market Updates

Commodities & Agriculture:

  • Brent crude (UKOIL) futures for September rose $1.65, or +1.55%, to $108.27 a barrel by 1034 GMT, after gaining $2.22 on Wednesday.
  • U.S. West Texas Intermediate (WTI) crude (USOIL) up $2.03, or +2.09%, after rising $2.28 in the previous session.
  • Gold futures were up +0.93% to $1,739.40 by 12:01 AM ET (4:01 AM GMT). The dollar, which normally moves inversely to gold, edged down on Thursday morning.
  • Silver gained +2.76%. Platinum jumped +0.33%, while Palladium climbed +0.56%.

Forex:

  • The U.S. currency sank as low as 135.105 yen (USDJPY), its weakest since July 6 after the Fed raised the benchmark rate by an as-expected 75 basis points to bring it closer to neutral.
  • The Euro is marginally higher against the dollar (EURUSD), up +0.04% to $1.0206, ahead of preliminary German inflation data scheduled for release later on Thursday.
  • The British pound (GBPUSD) gained against the dollar, trading in the green by +0.16% to $1.2170

During Market hours Yesterday  (Wednesday – 27.07.2022)

  • The Federal Reserve on Wednesday raised its benchmark interest rate by three-quarters of a percentage (+0.75%) point for the second straight meeting in an effort to tamp down inflation that’s been running at a four-decade high. Mr Powell also mentioned that the Fed has to cause slower growth and accept rising recession risks to bring down inflation.
  • The Dow (Symbol: DIA) went up +1.41%. The S&P 500 (Symbol: SPY) gained +2.60% and the Nasdaq (Symbol: QQQ) spiked +4.23%.
  • Alphabet (Symbol: GOOGL) — The Google parent jumped +7.7% after showing strong year-over-year search revenue growth in the recent quarter. Despite a miss on the top and bottom lines, results were better than feared.
  • Microsoft (Symbol: MSFT) — The Windows and Xbox maker climbed more than +6.7% after issuing a rosy income forecast for the year ahead. However, Microsoft reported quarterly results that missed analysts’ expectations on both its top and bottom lines. Microsoft turned in the slowest revenue growth since 2020, at 12% year-over-year, in the second quarter.
  • Shopify (Symbol: SHOP) — Shopify advanced +11.7% even though the e-commerce platform posted disappointing earnings and issued weak forward guidance. It said inflation and rising interest rates will hurt consumer spending, reiterating what it said on Tuesday when it announced layoffs.
  • Enphase Energy (Symbol: ENPH) — The solar equipment stock rocketed nearly +18% higher after posting strong results for the recent quarter. Enphase said strong growth in Europe amid surging natural gas prices helped results.
  • PayPal (Symbol: PYPL) — PayPal shares rallied +12.2% on the back of a report from the Wall Street Journal that activist investor Elliott Management took a stake in the company.
  • Teva Pharmaceutical (Symbol: TEVA) — The Israel-based pharmaceutical company’s stock soared +21.1% after it reached a tentative settlement to pay more than $4 billion for its alleged role in the opioid crisis.
  • Spotify (Symbol: SPOT) —  Shares added +12.2% after the music streaming service reported a 14% increase in premium subscribers in its most recent earnings report. Spotify reported a worse-than-expected quarterly loss, but exceeded analysts’ revenue estimates.
  • Garmin (Symbol: GRMN) – Shares of the electronic device company dropped more than -8% after second-quarter sales declined to $1.24 billion. Analysts surveyed by Refinitiv were expecting $1.34 billion. The company pointed to a strong dollar and supply chain issues as reasons for the weakness. Garmin’s adjusted earnings per share came in at $1.44, or 4 cents better than estimates.
  • Hilton (Symbol: HLT) – The hotel stock rose almost +7.5% after beating estimates on the top and bottom lines for the second quarter. Hilton reported $1.29 in adjusted earnings per share on $2.24 billion of revenue. Analysts surveyed by Refinitiv were expecting $1.04 in earnings per share on $2.08 billion of revenue. Hilton said its revenue per-available-room was ahead 54% compared with the same quarter last year. The hotel chain also raised its full-year earnings guidance.

During Premarket hours today (Thursday – 28.07.2022)

  • Spirit Airlines (Symbol: SAVE) – Spirit shares rose 3.9% in premarket trading after it agreed to be acquired by JetBlue (Symbol: JBLU) for $33.50 per share in cash. That follows yesterday’s rejection by shareholders of Spirit’s previous deal to merge with Frontier Airlines parent Frontier Group (Symbol: ULCC). Frontier shares added +1.2% while JetBlue stock was little changed.
  • Solar stocks – Shares of solar companies popped in the premarket after Democratic Sen. Joe Manchin agreed to support a bill that would grant a variety of clean energy incentives. Sunrun (Symbol: RUN) surged +11.2%, Sunnova (Symbol: NOVA) rallied +12.9%, First Solar (Symbol: FSLR) jumped +9.9% and SunPower (Symbol: SPWR) leaped +11.9%.
  • Southwest Airlines (Symbol: LUV) – The airline reported better-than-expected profit and revenue for the second quarter, and said demand continued to be strong. The stock sank -6.1% in the premarket, however, after it issued mixed guidance and a prediction of continued rising costs.
  • Harley-Davidson (Symbol: HOG) – The motorcycle maker’s shares jumped +5% in the premarket after it reported better-than-expected second-quarter profit and revenue. Harley also reaffirmed its prior full-year guidance despite a two-week production suspension during the quarter due to a supplier issue.
  • Meta Platforms (Symbol: META) – Meta shares slid -4.2% in the premarket after the Facebook and Instagram parent reported lower-than-expected earnings and revenue for the second quarter. Meta’s decline in revenue was its first ever, amid a pullback in digital advertising.
  • Ford (Symbol: F) – Ford rallied +6.3% in premarket trading as it beat profit and revenue estimates for the second quarter. Ford earned 68 cents per share, compared to a consensus estimate of 45 cents a share, as the automaker had more cars to sell with prices remaining elevated.
  • Best Buy (Symbol: BBY) – Best Buy lost -3.8% in the premarket after the electronics retailer cut its full-year sales and profit forecast. Best Buy said demand for consumer electronics is softening due to higher prices for food and fuel.
  • Etsy (Symbol: ETSY) – Etsy shares rallied +9.1% in premarket trading after the online marketplace operator reported better-than-expected quarterly sales and profit. Etsy was helped by an increase in ad sales as well as higher transaction fees.

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