Daily Market Report by GulfBrokers 2020-2021

Status
Not open for further replies.
morning-brew-FMGX74HeXbA-unsplash (1).jpg

PepsiCo (NASDAQ: PEP) second-quarter earnings beat the Wall Street expectations.

$PEP pre-market +2%, 136.90. The stock has a 52-week high of $147.20 and a 52-week low of $101.42.

EPS $1.32 vs $1.25 expected
Revenue $15.95B vs $15.38B expected
audusd.PNG
 
A busy week ahead as investors keep an eye on the new earnings season and EU summit. Apart from this, there are several other important events to watch.

Gulf_brokers_Kalendar_W29_1200x1200px-002.png
 
shutterstock_309698588 (1).jpg

Investors will shift their attention this week to corporate earnings with some of the biggest U.S. companies reporting their earnings later the week. Global shares trading strong on Monday ahead to the release of major corporate earnings results.

Second Quarter earnings season kicks off with stronger -than – expected results from PepsiCo. On Monday, the drink and snack giant PepsiCo (NASDAQ: PEP) second-quarter earnings beat the Wall Street expectations. PepsiCo stock climbed 1.85% (+$2.49) on Monday and at the time of writing, the stock trading at $136.95 per share.
  • Earnings per share: $1.32 vs. $1.25 expected
  • Revenue: $15.95 billion vs. $15.38 billion expected
“Despite being faced with significant challenges and complexities because of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business” PepsiCo CEO, Ramon Laguarta said.

Here is the lineup of top earnings releases including JPMorgan, Citi, Goldman Sachs, Bank of America, and Netflix to look out for this week.

usa-5018531_1920


Tuesday 14/07/20
  • JPMorgan Chase (NYSE: JPM) kicks off big bank earnings on Tuesday alongside Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C).
  • The Delta Air Lines Inc. (NYSE: DAL) is expected to report its second-quarter results before regular trading begins on Tuesday.
Wednesday 15/07/20
  • The banking giants Goldman Sachs (NYSE: GS) and U.S. Bancorp (NYSE: USB) will release its second-quarter results on Wednesday before the bell.
  • UnitedHealth Group Inc. (NYSE: UNH) is expected to post its second-quarter results before the markets open on Wednesday.

Thursday 16/07/20
  • Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) is expected to reveal its second-quarter results on Thursday before the open.
  • Domino’s Pizza Inc. (NYSE: DPZ) and Johnson & Johnson (NYSE: JNJ) will report its second-quarter results before the markets open on Thursday.
  • Netflix is scheduled to report second-quarter 2020 results on Thursday after market close. Netflix’s stock surged 70% for the year to date through Friday’s close.
Friday 17/07/20
  • Blackrock (NYSE: BLK), the giant asset manager, is due to report its quarterly figures before the markets open on Friday. The $BLK stock surged 19.7% since the company last reported earnings on April 16.
Read more- https://gulfbrokers.com/en/top-earnings-reports-to-watch-this-week
 
Gold price at the decision point. Watching $1790 and $1818 for this week. If the price break above $1818, the next level to watch $1830/36. On the other side break below $1790/92 will open doors to $1780/74 followed by $1760.

audusd.PNG
 
british-107866 (1).jpg

UK GDP slightly rebounded by just 1.8% in May from a record plunge 20.4% in April as lockdown measures eased. Meantime, both manufacturing and industrial production numbers for May showed a decent rebound, with recoveries to 8.4% and 6% respectively. UK Chancellor Rishi Sunak said: "Today’s figures underline the scale of the challenge we face. I know people are worried about the security of their jobs and incomes. “Our clear plan invests up to £30 billion in significant and targeted support to put people’s livelihoods at the centre of our national renewal as we emerge through the other side of this crisis.”

EQUITIES

Global stocks trading lower on Tuesday as concerns about the negative impact of US-China political tensions and the rise in Covid-19 cases. On Monday, Tesla shares jumped 13% to $1,744.11 and later the stock closed 3% lower. The stock has surged in nine of the past 10 sessions, rising nearly 30% in the past three trading days alone.

OIL

Crude oil price slightly recovered from the early losses ahead of OPEC meeting later this week. OPEC and allies, including Russia, are expected to ease production cuts to 7.7 million BPD, down from a record cut of 9.7 million BPD for May through June.

CURRENCIES

The pound trading bearish against the dollar and Euro for the second consecutive day. The GBP/USD dropped to near 1.2500 during the European session after the mixed economic data.

GOLD

Gold price trading below the psychological level $1800 on Tuesday weighed down by a stronger dollar.

Economic Outlook

US Banks earnings will kick-off today as the latest quarterly numbers from JPMorgan, Wells Fargo and Citigroup will release its second-quarter results on Tuesday before the bell.

On the data front, China reported its trade data for June. Imports to China unexpectedly grew by 2.7% and economists were expecting -10%. Exports came in at 0.5%, and the consensus estimate was -1.5%, while the May reading was -3.3%. While the German ZEW headline numbers for July showed that the Economic Sentiment Index came in at 59.3 versus 60.0 expectations and 63.4 last.

On the earnings calendar, PepsiCo’s second-quarter earnings beat the Wall Street expectations. The company reported earnings on Monday before the bell

Coronavirus update:

The number of people infected with the coronavirus across the world hit 13.11 million, of which at least 573 thousand people have died, according to Johns Hopkins. The US, the world’s worst-affected country, now has a total of more than 3.3 million cases and 135,000 deaths.

Technical Outlook

XAU/USD:
The yellow metal price at the decision point. Watching $1790 and $1818 for this week.

audusd


The important levels to watch for today: Support- 1792 and 1780 Resistance- 1806 and 1818.

EUR/USD: The currency pair ignored the negative German economic data. At the time of writing the pair trading above 1.1350.

cruse


The important levels to watch for today: Support- 1.1320 and 1.1280 Resistance- 1.1380 and 1.1420.

Quote of the day: Wealth is only a benefit of the game of money. If you win, the money will be there- J. Paul Getty.

Read more-https://gulfbrokers.com/en/daily-market-report-125
 
AUD/USD trading sideways between 0.6920 and 0.7000. Wait for the breakout. Any break above the psychological level 0.70 will open the doors to 0.7030/65. On the downside break below 0.6920, the next support at 0.6850 then 0.6800.

Fundamentally the important economic news to watch for AUD this week, the Australia employment report- which will publish on Thursday during the Asian session.

audusd.PNG
 
EUR/USD broke above 1.1420 and surged to 4-month high of 1.1440, eying 1.1495 ahead of ECB decision tomorrow. Overall the movement remained bullish throughout today. The important levels to watch for this week 1.1495 and 1.1370.
cruse.PNG
 
covid19-5353006.jpg

On Tuesday, American biotech firm Moderna said its experimental vaccine for COVID-19 produced "reasonably high" levels of antibodies. A Phase 3 trial will probably start on July-27 and will be conducted in 30,000 volunteers. On March 16, Moderna became the first company in the United State to begin human testing of a vaccine for the novel coronavirus. "These positive Phase 1 data are encouraging and represent an important step forward in the clinical development of mRNA-1273, our vaccine candidate against COVID-19, and we thank the NIH for their ongoing collaboration." Said Stéphane Bancel, CEO of Moderna.

EQUITIES

Global stocks trading higher on Wednesday on the news that Moderna’s COVID-19 vaccine has produced antibodies in an initial safety trial. Moving ahead to the North American session the investors will closely monitor the financial results from Goldman Sachs, PNC, US Bancorp, and IBM due to report today. On Tuesday, the Dow Jones Industrial Average rose more than 375 1.5% and the S&P 500 rose 0.5%.

OIL

Crude oil price trading steady ahead of OPEC meeting. The oil price also received boosted by the latest API data showed stocks of crude oil in the US tumbled by 8.3 million barrels in the week ended July 10th.

CURRENCIES

The British Pound recovered from early session losses after UK inflation rate unexpectedly climbed to 0.6% in June from a 4-year low of 0.5% in May. Meantime, the Australian dollar rose to fresh month high and at the time of writing the currency pair hovers around 0.7000 psychological level.

GOLD

The gold price rose on Wednesday supported by mounting coronavirus cases in the world and US-China tensions deepened.

Economic Outlook

On the data front, The Bank of Japan kept interest rates unchanged at -0.1% while maintaining the target for the 10-year Japanese government bond yield at around 0%. On Tuesday, the U.S. Labor Department reported the consumer price index rose 0.6% last month, the biggest gain since August 2012, after easing 0.1% in May.

On Tuesday, President Donald Trump signed a bill approved by the Congress to penalize banks and financial institutions dealing with Chinese officials who implement the new security law in Hong Kong. The Trump administration also plans to scrap a 2013 auditing agreement that could lead to a stronger crackdown on U.S.-listed Chinese companies.

On the earnings calendar, major US banks like JP Morgan Chase, Citigroup, Wells Fargo, and the major airline carrier reported their latest financial results on Tuesday. JPMorgan Chase & Co. (NYSE: JPM) announced better-than-expected Q2 earnings, while Wells Fargo Reported Q2 Net Loss of $2.4 billion.

Coronavirus update:

The number of people infected with the coronavirus across the world hit 13.32 million, of which at least 578 thousand people have died, according to Johns Hopkins. The United States has become the worst-affected country, with more than 3.4 million diagnosed cases and at least 136,440 deaths. Russia confirmed 6,422 new coronavirus infections Wednesday, bringing the country’s official number of cases to 746,369.

Technical Outlook

XAU/USD:
The yellow metal trading steady above $1810 on Wednesday, eyeing a test of $1818 level.

euraud


The important levels to watch for today: Support- 1806 and 1800 Resistance- 1818 and 1826.



EUR/USD: The currency pair climbed to fresh 4- month high and at the time of writing the pair trading around 1.1430.

cruse


The important levels to watch for today: Support- 1.1420 and 1.1380 Resistance- 1.1440 and 1.1495.


Quote of the day: If you have trouble imagining a 20% loss in the stock market, you should not be in stocks – John C. Bogle.

Read more- https://gulfbrokers.com/en/daily-market-report-126
 
europe-4224216 (1).jpg

It's a big day for the EURO. The traders and investors remained cautious of the ECB's monetary policy decision and the press conference of its president Christine Lagarde. The main interest rate to remain unchanged at 0% and the deposit rate at -0.50%.

EQUITIES

Chinese stocks ended lower on Thursday after China's retail trade unexpectedly declined by 1.8% in June 2020. Australian shares closed lower today, on the concern of accelerating coronavirus infection rates in the country and the unemployment rate surged to 7.4% in June 2020 from 7.1% in May.

OIL

Crude oil prices eased after OPEC and allies such as Russia agreed to taper record supply curbs from August. Meanwhile, the recent industry data showed that US crude inventories declined by 7.5 million barrels last week, compared with market expectations of a fall of 2.1 million barrels.

CURRENCIES

The British pound trading remained unchanged after better than expected employment report. The UK unemployment rate remained unchanged at 3.9% for May as compared to 4.2% anticipated.

GOLD

The gold price rose to continue to stay near the record highs, amid rising COVID-19 infections globally and increased tensions between U.S and Beijing.

Economic Outlook

On the data front, China's gross domestic product grew 3.2% on year in the April-June quarter after contracting during the previous three months. In the first quarter, the country experienced a 6.8% contraction. Meantime, Australia's unemployment rate increased to 7.4% in June from 7.1% in May, reaching the highest mark since November 1998 while employment change in June increased by 210.8K, which turned out to be almost twice as good as market expectations.

On the earnings calendar, major US banks Goldman Sachs and U.S. Bancorp reported their latest financial results on Tuesday. The bank second-quarter earnings improved 7.75 % compared with the same quarter last year.

Moving ahead today, the important events to watch:

EUROZONE ECB Interest rate decision – 11.45 GMT

US Retail sales – 12.30 GMT

EUROZONE ECB Press conference – 12.30 GMT

US Weekly jobless claims – 12.30 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world hit 13.55 million, of which at least 584 thousand people have died, according to Johns Hopkins. The United States set a record Wednesday with more than 67,000 cases registered in the previous 24 hours. India reports another biggest single-day jump with 32,695 new infections in the past 24 hours, bringing the country's tally to 968,876.

Technical Outlook

XAU/USD:
The yellow metal moving sideways and stay in a trading range between $1790 and $1818.

audusd


The important levels to watch for today: Support- 1800 and 1790 Resistance- 1810 and 1820.

EUR/USD: The currency pair retreated from 4-month high, at the time writing the pair trading below 1.14000 ahead of ECB meeting.

cruse


The important levels to watch for today: Support- 1.1370 and 1.1320 Resistance- 1.1450 and 1.1500.


Quote of the day: Patience is one of the most valuable attributes in investing – Martin Zweig.


Read more-https://gulfbrokers.com/en/daily-market-report-127
 
Since the situation in the U.S. is still not very stable, gold now also provides an opportunity to earn almost every day. So I've included that in my action plan too, because it seems to me very promising.
 
Status
Not open for further replies.
Back
Top