NEW YORK (Dow Jones) — The US stock indexes are likely to register gains at the start on Friday after technology stocks had been under massive pressure the previous day. Two factors in particular will play a role on the reporting day. One is the rebalancing in the Nasdaq 100, which takes place after Friday’s market close and takes effect at Monday’s opening, and the other is the expiry of roughly $2.3 trillion in US listed options.
“There seems to be a bit of fear in some of the top tech stocks as they will take a discount on Monday’s Nasdaq rebalancing,” Navellier said. Nvidia and Microsoft are the hardest hit by the Nasdaq rebalancing.
The day before, poorly received earnings figures from Tesla and Netflix had put pressure on the Nasdaq indices. “The current market is primed for perfection,” says Louis Navellier, chairman and founder of Navellier & Associates: “If a company beats expectations and upgrades guidance, it (with the stock) can still go down if there are any concerns or worries.” Navellier specifically cites Tesla’s results.
American Express weak by the numbers
American Express posted record sales and earnings per share for the fifth consecutive quarter, but the company remains cautious about cardholder debt issues. Provisions for loan losses were increased further. The stock fell 3.6 percent premarket.
Schlumberger shares fell 1.2 percent. The oil drilling company beat earnings guidance in the second quarter, but revenue came in slightly below guidance.
CSX reacted to the railway company’s quarterly figures with a minus of 4.9 percent. CSX had reported declines in both sales and profits, in part because the company is struggling with staff shortages.
Knight-Swift Transportation reported a significant decline in revenue in the second quarter. The share of the largest North American transport company became cheaper by 2.6 percent.
Yen under pressure
There is little movement in bonds, the lack of economic data means that there is a lack of impetus, the participants complain. Dollar gains modestly, correcting recent weakness. At the same time, the yen came under significant pressure. According to market participants, the trigger should be a Bloomberg report, according to which the Japanese central bank currently sees no urgent need to deal with the side effects of its program to control the yield curve.
The oil market is on the up. Participants expect that there will be a shortage of supply in the second half of the year. Expectations that central banks have reached the end of their rate-hike cycles and that the economy may prove more resilient than feared accompany the current price rally. Supply cuts by Saudi Arabia and Russia also had an effect.
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US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.85 -1.6 4.86 42.6
5 years 4.10 -0.9 4.11 10.2
7 years 3.98 -0.6 3.98 0.8
10 years 3.84 -0.8 3.85 -3.6
30 years 3.89 -1.9 3.91 -7.6
FOREX last +/- % Fri 8:16am Thu 5:23pm % YTD
EUR/USD 1.1125 -0.1% 1.1142 1.1143 +3.9%
EUR/JPY 157.64 +1.1% 156.21 156.42 +12.3%
EUR/CHF 0.9630 -0.2% 0.9646 0.9651 -2.7%
EUR/GBP 0.8673 +0.2% 0.8637 0.8673 -2.0%
USD/JPY 141.69 +1.2% 140.20 140.36 +8.1%
GBP/USD 1.2825 -0.3% 1.2902 1.2847 +6.0%
USD/CNH (Offshore) 7.1792 +0.1% 7.1726 7.1839 +3.6%
Bitcoin
BTC/USD 29,812.95 -0.1% 29,838.09 29,811.77 +79.6%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 76.71 75.65 +1.4% +1.06 -2.7%
Brent/ICE 80.60 79.64 +1.2% +0.96 -3.1%
GAS VT Settlem. +/- EUR
Dutch TTF 30.04 28.02 +7.2% +2.02 -64.3%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,966.40 1,969.46 -0.2% -3.07 +7.8%
Silver (Spot) 24.83 24.83 +0.0% +0.00 +3.6%
Platinum (Spot) 957.48 958.00 -0.1% -0.53 -10.4%
Copper Future 3.83 3.83 +0.1% +0.00 -0.6%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
July 21, 2023 08:22 ET (12:22 GMT)