The JPY is the strongest and the EUR is the weakest as the NA session begins.

The strongest to weakest of the major currencies

The JPY is the strongest and the EUR is the weakest as the NA session begins and the day after the FOMC rate hike of 75 basis points where Chair Powell’s comments on rate dependency were met with positive ears from the market given the back off of oil prices since the June inflation report as well as other commodities. Walmarts warning on earnings is also good news for inflation as they overstocked with inventory, and consumers are choosing food over other goods. That should put a lid/lead to lower prices in other goods.

The USD fell, stocks rallied and yields edged lower. Gold prices moved higher. The NASDAQ at its best day since April 2020.

Today, a modest wall of worry has returned a bit with stocks lower (led by the Nasdaq). Facebook/Meadows earnings disappointed. It’s shares are down over 4% in premarket trading. US GDP for the 2nd quarter will be released with a negative number signaling a technical recession (two back to back quarters of negative growth). However a gain is expected of 0.5%. Initial jobless claims will also be released. They have been taking back to the upside (expected 253K) .

Earnings this morning showed Honeywell beating on the top and bottom line. MasterCard also exceeded expectations as people traveled and spent. Comcast beat. Pfizer beat and raised fiscal year guidance for revenue. Southwest Airlines beat on earnings-per-share, revenues were in line with expectations. Merck beat estimates on the top and bottom lines as well. After the close the final leg of the big cap earnings will be released with Amazon, Apple, and Intel all reporting. Tomorrow morning oil companies including Chevron and Exxon Mobil will be reporting.

A snapshot of the market currently shows:

  • spot gold has continued its moved to the upside with a gain of $5.15 or 0.29% at $1739
  • spot silver is up $0.25 or 1.35% at $19.34
  • WTI crude oil is higher and $99.41 that’s up $2.14 on the day
  • The price bitcoin is trading at $23,041 after trading as high as $23,452. The price low for the week on Wednesday reached $20,700. Yesterday the price rallied with stocks and extended back above both its 100 and 200 hour moving average at $21,916 and $22,444 respectively

In the premarket for US stocks, the major indices are trading lower after the sharp gains yesterday:

  • Dow industrial average is down -61 points after yesterdays 436.05 point rise
  • S&P index is down -13.6 points after yesterdays 102.58 point rise
  • NASDAQ index is down -96 points after yesterdays 469.85 point surge

In the European equity markets major indices are mixed with France and Italy higher

  • German DAX -0.1%
  • France’s CAC +0.1%
  • UK’s FTSE 100 -0.2%
  • Spain’s Ibex -0.6%
  • Italy’s FTSE MIB +1.1%

In the US debt market, yields are lower in the short end, and little changed further out the curve:

  • 2 year 2.957%, -2.1 basis point
  • 5 year 2.807%, -2.2 basis points
  • 10 year 2.765%, -1.0 basis points
  • 30 year 3.069%, +0.8 basis points

In the European debt market, yields are mixed:

Benchmark 10 year yields in Europe
Technical Analysis

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