Megacaps report, Harris in frame, China wobbles
A look at the day ahead in U.S. and global markets from Mike Dolan
Monday's Wall Street bounce saw some relief precede the first two earnings reports from the "Magnificent 7" megacap stocks, while U.S. Vice President Kamala Harris looked set to replace Joe Biden as Democrat candidate for November's White House race.
A volatile couple of weeks for politics and stock markets sees attention switch back to quarterly earnings on Tuesday, with Google-parent Alphabet GOOGL.O and Tesla TSLA.O updating after the bell today.
Last week's sudden rotation out of Big Tech into small caps raised questions about just how high the earnings bar now is for pricey market behemoths, with stocks such as Netflix stumbling despite beating forecasts and chipmakers sideswiped by geopolitics.
A standback look at the earnings season so far offers more solace.
Some 81% of those that have reported to date have beaten estimates, with overall annual profit growth for S&P500 firms still tracking a punchy 11% - slightly ahead of pre-season assumptions. Slower annual revenue growth at 4.5% is also slightly ahead.
And while this pace is expected to dip in Q3, standing forecasts are for a re-acceleration into 2025.
With the S&P500 rebounding more than 1% on Monday in its best day in six weeks, the Information Technology index .SPLRCT climbed 2% - topping sectoral gainers and snapping a four-day losing streak.
The VIX volatility gauge .VIX slipped back from three-month highs.
In a twist ahead of today's updates, Israeli cybersecurity startup Wiz has ended talks with Alphabet GOOGL.O on a reported $23 billion deal, which would have been the U.S. tech giant's largest-ever acquisition, according to a Wiz memo seen by Reuters.
But the election race remains the top talking point.
Less than 36 hours after Biden stepped aside and endorsed VP Harris, she appeared to have secured the Democratic nomination on Monday night by winning the pledged support of a majority of the party's delegates who will determine the outcome at next month's convention.
While another round of speculation about Harris' pick of running mate now ensues, markets are already tentatively re-calibrating election bets.
Although former President Donald Trump is still seen as clear favourite to return to the White House, online betting site PredictIt shows the probability of his win has slipped to 60%.
The solidifying of a clear two horse race after weeks of uncertainty about the candidates has seen Harris' ascribed probability jump 17 points from last week to some 44% on Tuesday as her campaign now begins in earnest.
The somewhat cagey election positioning to date has run into sand as a result, with many of the so-called Trump trades being pared back slightly.
With another heavy week of Treasury debt auctions kicking off with a $69 billion two-year note sale on Tuesday, Treasury yields sensitive to the fiscal implications of the election remained under wraps. The 2-to-30 year yield curve US2US30=RR, which had briefly turned positive last week, remains inverted.
Bitcoin BTC= also slipped back.
The dollar .DXY was mixed too, falling back against Japan's yen JPY= on Tuesday as pressure built on the Bank of Japan to resume monetary tightening there.
Senior Japanese ruling party official Toshimitsu Motegi said the BOJ should more clearly indicate its resolve to normalise monetary policy, including through steady interest rate hikes. The BOJ next sets rates on July 31.
Increasingly correlated in Asia, yen strength came in tandem with a small bounce in China's yuan CNH= too, despite Monday's surprise interest rate cut from the People's Bank of China.
Trump's draconian tariff pledges may play a part there too.
But Chinese stocks recorded their biggest single-day drop in six months, demonstrating the fragility of investor sentiment despite ongoing stimulus efforts.
China's blue-chip CSI300 index .CSI300 closed down 2.1%, its largest one-day decline since mid-January and ending a seven-session winning run.
European stocks were mixed on Tuesday, with the euro EUR= retreating after European Central Bank Vice President Luis de Guindos said new data and macroeconomic projections will help the ECB better reassess its monetary policy stance in September - when markets now see its next rate cut.
Back on Wall Street, stock futures were off slightly ahead of the big earnings reports and with a thin economic diary.
Key developments that should provide more direction to U.S. markets later on Tuesday:
* U.S. June existing home sales, Richmond Federal Reserve's July business surveys; Euro zone July consumer confidence
* US corporate earnings: Alphabet, Tesla, Comcast, Texas Instruments, Lockheed Martin, UPS, GE, GM, Invesco, Visa, Capital One, Moody's, MSCI, Coca Cola, Kimberly-Clark, Chubb, HCA Healthcare, Freeport McMoRan, AO Smith, Pentair, Philip Morris, Avery Dennison, Danaher, PulteGroup, Quest, Seagate Technology, Sherwin-Williams Enphase Energy, CoStar, Genuine Parts, Packaging Corp of America
* G20 Finance Ministers and Central Bank Governors meet in Rio de Janeiro ahead of the G20 Brazil Summit
* European Central Bank Chief Economist Philip Lane speaks
* US Treasury sells $69 billion 2-year notes
S&P500 streak without 2% recoil https://tmsnrt.rs/3ybuh9g
Tesla's margin set to slip due to cheaper financing options https://reut.rs/4bSmhaP
Big Technology stocks post gains powered by AI boom https://reut.rs/3Yc6pNe
Betting markets trimmed Trump's odds as Biden exits https://reut.rs/3LvDVXo
By Mike Dolan; Editing by Sharon Singleton mike.dolan@thomsonreuters.com
免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。