Wake Up Wall Street (SPY) (QQQ): Tesla soars as GameStop stock split starts

Ivan Brian FXStreet

Here is what you need to know on Friday, July 22:

Equity markets just about held the positive narrative on Thursday with Tesla leading the Nasdaq higher as it surged 8% on the back of positive earnings. However, after the bell things turned ugly as Snap (SNAP) showed that advertising never holds up well in a recession, and this will have a big negative read-across for Alphabet (GOOG) and Meta Platforms (META). Next week is a big one in the earnings space. So far earnings are probably slightly ahead of investors' worst fears, which has helped the current rally. Already this morning though, futures are lower on the back of SNAP as investors now brace for tech earnings season.

The macro environment remains challenging with jobless claims appearing to show the jobs market is indeed slowing and heading for a likely recession. That of course saw yields move lower across the curve, which has been pushing equities higher recently. Markets are pricing in a recession, but so far they are pricing in a mild one. The dollar index is higher at 107.04, and Bitcoin is also higher at $23,500. Gold is at $1,726, and oil is lower at $94.80.

See forex today

European markets are higher: Eurostoxx +0.3%, FTSE flat, and Dax +0.3%.

US futures are mixed: S&P -0.3%, Dow flat, and Nasdaq -0.5%.

Wall Street top news (SPY) (QQQ)

GameStop (GME) down 74%! 4-for-1 share split is the cause, but some vendors have not updated their systems!

American Express (AXP) beats on top and bottom lines.

Verizon (VZ) misses EPS, revenue in line, and lowers guidance.

SNAP down 30% premarket.

Intuitive Surgical (ISRG) is down after earnings.

NextEra Energy (NEE) beats on top and bottom lines and raises dividends.

BJ Restaurant (BJRI) lower on profit miss.

Schlumberger (SLB) beats on top and bottom lines.

Novanta (NOVT) to enter S&P MidCap 400.

Upgrades and downgrades

Source: WSJ.com

Economic releases

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.