US MARKETS / Almost Maintained – Encouraging company numbers should support | News

NEW YORK (Dow Jones) – US stocks are likely to see modest profit taking in the middle of the week after a surge on Tuesday as unconfirmed reports of the resumption of Russian gas supplies via the Nord Stream 1 pipeline have raised fears that the energy crisis in Europe has eased. Futures contracts on major US stock indices indicate a tightly held position on Wall Street.

Encouraging quarterly reports from some large companies soothe fears of recession. However, the key issues remain high inflation and the efforts of the US Federal Reserve to combat it. speculation about one rate hike The 100bp rate hike, which was sometimes hot in the past week, has now largely disappeared from the market, but a 75bp rate hike is considered agreed. Investors fear the Federal Reserve may hold the economy down by being too rigid.

As for the economic data, only the sale of existing houses from June will be published.

To this end, investors are faced with a series of quarterly reports. Netflix in particular (+ 6.6%) was a positive surprise. The streaming provider lost subscribers in the second quarter, but by no means as many as feared.

Pharmaceutical company Abbott Laboratories not only fared better than expected, but also improved its prospects. Despite this, before the market, this share fell by 1.4 percent. The Group’s nutrition department recorded a decrease in sales, caused, inter alia, by a campaign to recall baby food and a temporary suspension of the production of relevant products.

Elevance Health’s outlook (-1.5%) includes both good and bad. While the company raised its full-year adjusted earnings forecast, it is increasingly pessimistic about its unadjusted earnings.

The stock market operator Nasdaq (+ 1.5%) made more than expected. The company also announced a 1: 3 split of shares.

In turn, oil industry equipment supplier Baker Hughes disappointed expectations, and its shares then fell 5.8%.

Merck & Co’s mileage fell 0.8 percent after Keytruda failed in a head and neck cancer treatment (HNSCC) study.

After the closing bell, Tesla, Alcoa, Qualtrics and United Airlines report on their operations.

Safe Haven Demand – Recession concerns drive down oil prices

The inflow of “safe havens” proves that a few good data about companies is not enough to reassure investors. Rising prices lower yields on the bond market. The dollar is gaining again; the dollar index rose by 0.3 percent.

Meanwhile, the euro rebounded slightly, falling below $ 1.02. In light of the rumors that appeared the day before that the ECB – contrary to earlier assurances – will consider raising the ECB’s deposit rate by 50 instead of 25 basis points, the currency expert Ulrich Leuchtmann from Commerzbank speaks of a clearly positive euro signal. Together with the rumors, the ECB market expectations would move upwards along the entire curve.

Not only the date but also the scale of the increases would be analyzed. If it is still only 25 basis points, it fears a big disappointment for the euro. Now, when 50bp is being discussed, a 25bp step would have to be interpreted as a decision that the ECB would consciously and deliberately disappoint with market expectations. This would be more damaging to the euro than if this expectation never existed.

Concerns about recession bring oil prices down again. The market is currently torn between concerns about a possible economic downturn in demand and a supply shortage. However, most analysts assume that demand will remain relatively high even with weaker economic growth. Both the International Energy Agency and OPEC only slightly lowered their demand forecasts.

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US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 3.18 -6.3 3.24 244.9

5 years 3.10 -4.6 3.15 184.0

7 years 3.08 -4.8 3.13 164.0

10 years 2.97 -4.9 3.02 146.4

30 years old 3.14 -3.5 3.18 124.1

FOREX last +/-% Wed 8:37 Tue 17:25% YTD

EUR / USD 1.0196 -0.3% 1.0232 1.0239 -10.3%

EUR / JPY 140.94 -0.3% 141.26 141.10 + 7.7%

EUR / CHF 0.9899 -0.1% 0.9920 0.9913 -4.6%

EUR / GBP 0.8517 -0.1% 0.8527 0.8515 + 1.4%

USD / JPY 138.20 + 0.0% 138.29 137.81 + 20.1%

GBP / USD 1.1972 -0.2% 1.1998 1.2025 -11.5%

USD / CNH (offshore) 6.7566 + 0.2% 6.7565 6.7469 + 6.3%

Bitcoin

BTC / USD 23 749.45 + 0.4% 23 635.89 22 818.02 -48.6%

ROHOEL the last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 102.60 104.22 -1.6% -1.62 + 42.2%

Brent / ICE 105.80 107.35 -1.4% -1.55 + 41.2%

GAS VT close +/- EUR

Dutch TTF 160.00 154.60 + 3.6% 5.54 + 41.5%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,708.22 1,711.75 -0.2% -3.54 -6.6%

Silver (Spot) 18.81 18.75 + 0.3% +0.06 -19.3%

Platinum (Spot) 876.98 878.00 -0.1% -1.03 -9.6%

The future of copper 3.36 3.29 + 2.1% +0.07 -24.4%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / cln / smh

(END) Dow Jones Newswires

July 20, 2022 08:25 ET (12:25 GMT)

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