Market Daily Update from Etoro
- US indices dragged down by retailers
- 14-year high for natural gas
- Meta to report earnings
Retailers drag US indices lower
US stocks closed lower yesterday, with retailers pacing the declines. The SPX500 (-0.62%), DJ30 (-0.29%) and NASDAQ100 (-1.07%) all retreated. Walmart (-7.6%) was one of the worst performers on the SPX500 after issuing a profit warning. Fellow retailers Dollar Tree (-6.29%) and Ross Stores (-5.65%) also struggled. Conglomerates 3M (+4.94%) and General Electric (+4.61%) led the index. Zscaler (-9.06%) and Crowdstrike Holdings (-7.37%) dragged the NASDAQ100 lower, with biotech firm Seagen (+2.7%) among its best performers. Investors will be closely following the Federal Reserve’s FOMC Statement and Federal Funds Rate, set to be released today at 18:00 GMT, followed by a press conference at 18:30.
Natural gas reaches highest level since 2008
Intense heatwaves are driving up the demand for natural gas, and Europe’s effort to switch away from Russian fuel is rattling the world’s energy markets. Meanwhile, the first pipeline that can transport gas from Siberia to Shanghai is being constructed by China and Russia, and will soon be operational.
Earnings season continues with Meta
Facebook’s owner’s struggling ad business will be under the microscope today, when the social media giant reports its second-quarter earnings. Consensus earnings are pegged at $2.51 a share, which would represent a more than 30% year-on-year decrease. Advertising-reliant firms have struggled of late as companies have cut their marketing budgets. Meta’s shares are down more than 57% over the past year. To follow upcoming earnings reports, go to eToro’s Earnings Reports Calendar.
- UK100 edges lower on economic concerns: The UK100 (-0.32%) edged lower yesterday as the International Monetary Fund (IMF) predicted the UK would be the slowest growing economy in the G7 club of rich nations next year. Food firm Compass Group (+3.01%) led the index following a well-received trading update.
- Cryptos slightly higher: The crypto market was slightly higher this morning, with most of the top 10 cryptos registering small gains. Bitcoin registered minor gains, trading above $21,000. Ethereum also registered small gains, and Cardano, XRP and Solana were all approximately 1% higher.
- Oil edges higher: The black gold’s price was seen higher this morning. Prior to the Federal Reserve’s anticipated interest rate hike, industry data indicated a significant decline in US crude stockpiles, which edged the price of oil higher.
- Asian markets mixed: Markets in the East were seen mixed this morning, with the China50 registering small losses, and the JPN225 and HKG50 registering small gains
- Shopify plummets 14%: Shopify shares tanked 14.06% yesterday after the e-commerce giant revealed plans to lay off 10% of its global workforce. In a memo to staff, CEO Tobi Lutke admitted the firm had overestimated the shift to online shopping post-lockdown and had hired too many staff. For the most recent and significant price movements in markets, check out the Market Movers page.
- Mixed open for European markets: The UK100 opened 16 points higher, the GER40 was up 47 points and the FRA40 opened 9 points lower.
-Cryptoassets are a highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.
-Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
-The information above is not investment advice.