Here is what you need to know on Wednesday, July 7:
One day without gains and already Wall Street is panicking. Really? Have we become this immune to some setbacks? In Fed-pumped stock market land it seems so, but nothing can go up forever. Whether panic sets in is up to market participants. The longer we are immune from falls, the worse the panic selling will be as investors will not be used to the sensation. The Nasdaq continues to power on regardless while its Relative Strength Index (RSI) continues to head further into overbought territory. Traditionally, ISM is a leading indicator, and yesterday's poor numbers could be a harbinger of doom. European PMI numbers were themselves not too hot, and the ZEW was a shocker.
We could be in for a tough end of summer and Autumn as some threats come over the horizon. Oil harmony is out the window as Saudi Arabia raises prices and continues to haggle with the UAE. Oil prices continue to rise. The Delta variant of COVID-19 is now rampant across much of the EU and looks to spread across the globe. This one is by far the most transmissible, so economies without high levels of vaccination will likely see further lockdowns. Australia has just extended its lockdown, and Toyko looks set to announce a state of emergency to last through the Olympics. Global growth forecasts have not yet accounted for this.
Oil as mentioned is high but has dropped as the UAE hints at cashing in on high prices. Oil drops to $74. The dollar is calm at 1.1810 versus the euro, with Gold at $1,804 and Bitcoin at $34,850. The Vix is at 16, and the US 10-year yield is making four-month lows at 1.3%. The Nasdaq loves low yields.
European markets are higher, Dax +1%, FTSE +0.2% and Eurostoxx +0.7%.
US futures are higher, the Dow is flat, Nasdaq +0.5% and S&P +0.1%.
Wall Street top news
UAE wants to leverage an increase in oil production to subsidize sustainable energy sources.
Japan plans a state of emergency for Toyko until August 22.
EU lifts growth forecast from 4.3% to 4.8% for 2021.
BlackRock (largest fund manager in the world) Investment Institute has gone neutral on US stocks.
Full Truck Alliance (YMM) down again in premarket by 5%. DIDI down 4%.
AMC down 4% premarket. Yesterday, company pulled additional share raise.
SAP upgraded by Bank of America, up 4% premarket.
Monday.com (MNDY) does not have the blues as it rises 3% premarket on multiple strong ratings by investment banks starting coverage.
BigCommerce Holdings (BIGC) up 5% premarket on Amazon fulfillment news.
Clover Health (CLOV) up 5% premarket, top of WallStreetBets' list today.
GS, WFC, MS, BAC, USB all down as yields slump to four-month lows.
Upgrades, downgrades, premarket movers
Source: Benzinga Pro
Economic releases
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