Ipek Ozkardeskaya
Swissquote Bank Ltd
Expectations for Netflix had gone so bad that the company could surprise with 970’000 less subscriptions last quarter. The smaller drop in subscriptions combined with higher fees increased the profit by 7% compared to the same time last year, despite near $340 mio the company lost due to a stronger US dollar. The share price jumped 8% in the afterhours trading, on top of 5% added during the session.
And most technology stocks had a good day yesterday. Nasdaq jumped 3%, while the S&P500 had its best day since three weeks, with a 2.76% gain. The motivation behind yesterday’s equity rally was rather obscure. A softer US dollar certainly helped boosting optimism about the earnings season.
Today, Tesla will release its latest quarterly earnings after the bell. Analysts expect around 2.5% revenue drop in the second quarter as a result of the factory shutdown in Shanghai due to the strict Chinese rules to achieve a zero Covid policy.
Elsewhere, Twitter marked the first goal in the lawsuit against Elon Musk, as a Delaware judged allowed the company to accelerate the procedure. The trial is now set to take place as early as October, while Elon Musk’s legal team was considering a timeline like 3-4 years.
The UK revealed that inflation advanced to 9.4% in June, from 9.1% printed a month earlier and 9.3% penciled in by analysts. Cable bounced back above the 1.20 mark on the back of a softer US dollar. As it is the case for the EURUSD, Cable could extend gains against the US dollar, if the dollar loses some of its strength, of course.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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