Oil Steadies As Weak China Economic Data Offsets Gains
Brent oil prices experienced small changes today and were set to close flat for the week after three straight weeks of gains, as markets weigh lower U.S. crude inventories and tapering interest rate hikes against weak Chinese economic data that could cap demand.
U.S. Leading Indicators Point To Recession
An index designed to track turns in U.S. business cycles fell for the 15th straight month in June, dragged down by a weakening consumer outlook and increased unemployment claims, marking the longest streak of decreases since the lead-up to the 2007-2009 recession.
Fed Launches Long-Awaited Instant Payments Service
The U.S. Federal Reserve has launched a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week, the central bank announced yesterday.
Today’s News
What goes up, must come down. The old saying came true when Wall Street’s moves yesterday will more than likely set the tone at the open for Asian markets later today. After rallying almost 40% since the turn of the year, the Nasdaq posted its biggest one-day loss since March, dragged down 2.05% by steep post-earnings plunges in ‘mega tech’ stocks Tesla (-10%) and Netflix (-8.5%).
Before Thursday’s second quarter results, Tesla and Netflix had posted year-to-date gains at approximately 140% and 60%, respectively, lifting a closely watched index of mega tech shares up by 85%. The ‘NYSE FANG+TM’ index slumped by 4.6% yesterday, its biggest fall of the year thus far.
Other more defensive parts of the market, however, are powering through. The Dow Jones Industrials chalked up its ninth consecutive gain, lifted by another 6% post earnings surge in Johnson & Johnson shares, its biggest rise in over three years!
Other technology-related reports include the following:
Tesla Stocks Stumble With Price-Cutting Spree
Tesla Inc’s (TSLA.O) stock tumbled nearly 10% yesterday after CEO Elon Musk signaled the electric vehicle maker will keep cutting prices to drive up demand, even after taking a painful hit to margins.
The leading electric car manufacturer lost over USD 50 billion of its stock market value, while fears of an escalating price war also hit the shares of General Motors (GM.N), Volkswagen AG (VOWG_p.DE) and other automakers respectively.
At USD 517 billion, Tesla’s market capitalization ended Thursday below Meta Platforms’ (META.O) for the first time since 2021.
Chile’s Progressive Mining Plan Meets Indigenous Hurdles
Chile’s millennial president, Gabriel Boric, promised to mine differently. He would turn the world’s largest copper producer and second largest lithium miner into a country that focused on environmental and social responsibility.
When Boric announced his ambitious plan in April to take state control over the country’s lithium industry and expand extraction of this essential component of electric car batteries, he pledged to so with pioneering environmentally-friendly technology, and personally talk with local Indigenous communities.
MarketAxess Tops Profit Estimates In Eurobond Trading
MarketAxess Holdings (MKTX.O) reported a better-than-expected second-quarter profit yesterday, as a bustling Eurobond market helped offset the hit from a decline in U.S. government bond trading.
The New York-based bond trader reported a profit of USD 1.59 per share for the three months ended June 30, beating analysts’ estimates of USD 1.57 per share, according to Refinitiv data.
Shares of the company rose nearly 5% and were on track for their biggest one-day percentage gain since 25 January 2023.
