Wake Up Wall Street (SPX) (QQQ): Buying the dip, any dip, still works

Ivan Brian FXStreet

Here is what you need to know on Wednesday, July 21:

Markets proved once again that buying the dip is the only show in town for 2021 with a strong recovery across global equity markets. Fears over the Delta covid variant have not gone away as the WHO says we are at the beginning of another wave, but investors hope that at least in developed economies high vaccination rates will be enough to keep things booming. Economies globally are surging in the developed world as most of Europe, the UK and the US now have high adult vaccination rates.

Earnings season continues along nicely with beats from Coca-Cola (KO), SAP and JNJ. One of our favourtie tickers, HOG, also beats. Harley Davidson!

The dollar remains calm at 1.1770 versus the euro, Oil is up 3% to $68, Bitcoin is also higher at $31,500, and Gold is at $1,800.

European markets are higher: EuroStoxx +1%, FTSE +1% and Dax +0.9%.

US futures are also up, Dow +0.4%, S&P +0.2% and Nasdaq is flat.

Wall Street top news

The UK warns of a suspension of the Northern Ireland Brexit deal.

US MBA mortgage applications fall 4% from a prior rise of 16%.

Coke (KO): EPS $0.68 versus $0.55 forecast.

SAP: EPS of $2.11 versus $1.45 forecast.

JNJ: EPS of $2.48 versus forecast $2.27.

Verizon (VZ): EPS of $1.37 versus forecast off $1.29 forecast.

Netflix (NFLX) reported after the close on Tuesday, mixed earnings, subscriber outlook growth disappointed.

Chipotle (CMG) reported strong earnings after the close on Tuesday.

Haliburton (HAL) upgraded by Goldman Sachs.

Moderna (MRNA) hits the WallStreetBets most interested list.

Electronic Arts (EA) upgraded by Deutsche Bank.

Upgrades, downgrades, premarket and earnings

Source: Benzinga Pro

Economic releases

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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