Your morning bite. Tech earnings knock stocks down. The ECB hikes by 75bp.
Stocks:
The S&P500 fell 0.6% and the NASDAQ shed 1.9% in cash trade, as the markets digested weak tech results. Things took another turn for the worse after Amazon reported results after the bell, posted weak sales guidance, and its shares plunged roughly 20%. Apple also delivered results which reflected potential sales weakness, with its share dropping after hours. SPI Futures are pointing to a 26 point drop for the ASX200 this morning. $S&P 500(.SPX)$ $Amazon.com(AMZN)$ $Apple(AAPL)$ $S&P/ASX 200(XJO.AU)$
Rates/bonds:
The ECB hiked 75 basis points as expected, and flagged further tightening tocome.The tone of the central bank was slightly less hawkish than expected and so the Euro slipped. Yields continued to decline, with the US 10 year dropping seven basis points to3.93%. Gilt and bund yields also fell. The Fed Funds Futures curve flattened slightly but a terminal rate of 5% is still considered probable.
FX:
The Euro dropped 1% and back below parity. Risk aversion also supported the US Dollar, with the DXY rebounding.The Yen and Sterling was less volatile. However, the Aussie Dollar pulled back to 0.6450, with a drop in iron ore prices to a fresh two year low -on fears about Chinese growth - weighing on the currency.
Commodities:
Gold prices were largely steady, despite lower yield. Oil prices rose 1.3% with Brent Crude trading around $96. $Micro WTI Crude Oil - main 2212(MCLmain)$
Crypto:
Bitcoin slipped but remains above $20,000.
Huge fall in $AMZN after Q3 results. $Amazon.com(AMZN)$
EPS beats, $0.28 v. Est. $0.22. Net Sales misses, $127.1B, EST. $127.64B
The key detail is guidance. Q4 Net Sales are expected to be $140.0B to $148.0B, versus the $155.52B forecast.
Amazon is back trading where it was a few days before the Fed's "QE infinity" announcement in March 2020.
It's been a helluva 2 and a half years, my friends.
Follow me to learn more about analysis!!
Comments