BMW fell more than 6% after warning of higher electric car development costs, while logistics giant DHL Group issued a profit forecast that missed analysts' estimates. Software company ZoomInfo plunged 20% in pre-market U.S. trading after lowering its revenue forecast. Pfizer slipped slightly after the drugmaker cut its sales forecast, with rival Merck delivering a solid forecast and beating profit expectations. HSBC rose after strong sales growth and Toyota closed higher than ever after strong sales growth and a positive forecast. Uber and Caterpillar also beat expectations.
It's another eventful day on the stock market. AMD will report after the bell today. Tech giants Apple and Amazon will be watched very closely on Thursday.
The worsening risk sentiment is also reflected in the USD, which continued to strengthen against its peers. U.S. Treasury yields also rose slightly, putting some pressure on commodity prices and the growth sector.
Another reason for the sideways movement / slightly increased downward pressure was the renewed disappointing results of important Chinese data. Industrial activity continued to decline in July, missing expectations of modest growth.
The JPY remains weak as investors do not see the hawkish monetary stimulus sought by the Bank of Japan. The AUD came under pressure as risk sentiment weakened and the RBA unexpectedly left interest rates unchanged.
The hope that interest rates are already in the final phase will further support general expectations of an improving global economy. The main focus will be on earnings reports, especially those that provide insight into overall demand and economic activity, such as today's DHL report, which however was rather disappointing.
We will see mostly sideways and mixed markets today. Growth stocks will see some profit taking.
👁 ROB'S MARKET OVERVIEW:
August 1, 2023
🇺🇸 US Markets ➡️/↘️
Cyclical Stocks ➡️/↘️
Tech/Growth Stocks ➡️/↘️
Financial Stocks ➡️
Defensive Stocks ➡️
Energy Stocks ➡️
Materials Stocks ➡️/↘️
💱 Forex
USD ➡️/↗️
EUR ➡️
CAD, JPY, CHF ➡️/↘️
GBP ↘️ (expectations rise that BoE points to near end of hiking campaign)
AUD ↘️ (worsened risk sentiment, pressure on commodity prices, RBA pause)
⚒ Commodity Markets ➡️/↘️
Oil prices ↕️ (pressure from worsened risk sentiment, stronger USD – remains bullish)
Natural Gas prices ➡️/↘️
Metal prices ➡️/↘️
Precious Metal prices ➡️/↘️ (strong USD puts some pressure on gold, still high Treasury yields)
⚡️Cryptos ↘️ (worsened risk sentiment, high bond yields)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
Yours, Robert
