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.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.