CFD Markets News and Forecasts — 23-07-2018

The major US stock indexes ended the trading mixed, but with a slight change, as the profit of financial stocks was compensated by the fall in shares of Amazon and industrial companies amid investors' expectations of earnings reports by large companies in order to assess the impact of the escalating trade conflict.

A certain influence on the course of trading also provided data on the United States. Led by improvements in production indicators, the index of economic activity from the Federal Reserve Bank of Chicago (CFNAI) recovered to +0.43 in June from -0.45 in May. The three-month moving average of the index, CFNAI-MA3, in June rose to +0.16 from +0.10 in May. The diffusion index CFNAI, which is also a three-month moving average, has not changed and remained at the level of +0.15 in June.

In addition, according to the National Association of Realtors (NAR), home sales in the secondary market decreased last month for the third month in a row, as the decline in the South and West exceeded sales in the Northeast and the Midwest. The constant imbalance of supply and demand helped the median selling price in June to reach a new record high. The total volume of home sales in secondary markets, which are completed transactions, including single-family homes, urban homes, condominiums and cooperatives, declined by 0.6% to a seasonally adjusted exchange rate of 5.38 million units from the revised 5.41 million units in May. With a decrease in June, sales are now 2.2% lower than a year ago.

Most DOW components recorded a decline (17 out of 30). Outsider were shares of 3M Company (MMM, -1.58%). Leader of the growth were shares of JPMorgan Chase & Co. (JPM, + 2.07%).

Most sectors of the S & P finished trading in the red. The largest decrease was shown by the sector of industrial goods (-1.0%). The financial sector grew most (+ 0.7%).

At closing:

Dow 25,044.29 -13.83 -0.06%

S&P 500 2,806.98 +5.15 +0.18%

Nasdaq 100 7,841.87 +21.68 +0.28%

• Additional Two Phases Under Consideration With Potential to Produce More Than 750,000 Barrels/Day

• Success in Upstream Projects Increases Confidence in Earnings Growth Plans

• Previous Stabroek Recoverable Resource Estimate Was 3.2 Billion Oil-Equivalent Barrels

Existing-home sales decreased for the third straight month in June, as declines in the South and West exceeded sales gains in the Northeast and Midwest, according to the National Association of Realtors. The ongoing supply and demand imbalance helped push June's median sales price to a new all-time high.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 0.6 percent to a seasonally adjusted annual rate of 5.38 million in June from a downwardly revised 5.41 million in May. With last month's decline, sales are now 2.2 percent below a year ago.

U.S. stock-index futures were mixed on Monday, as investors as investors assessed the impact of an escalating trade dispute between the U.S. and China on future corporate results, while awaiting a large bulk of Q2 earnings this week.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Wholesale sales rose 1.2% to a record $63.7 billion in May. Sales were up in four of seven subsectors, representing approximately 50% of total wholesale sales.

The miscellaneous, building material and supplies, and farm product subsectors contributed the most to the gains in May, while the motor vehicle and parts subsector posted the largest decline.

In volume terms, wholesale sales increased 1.3%.

In dollar terms, the miscellaneous subsector reported the largest increase in May, as sales rose 7.8% to $8.3 billion. Sales were up in four of five industries, led by the agricultural supplies industry (+25.6%) following a 5.4% decline in April. In volume terms, the agricultural supplies industry increased 27.4%.

Int'l Paper (IP) resumed with a Buy at Citigroup; target $65

General Electric (GE) downgraded to Hold from Buy at Argus

Raiffeisen revises upward its forecast for the Russian ruble, seeing USD/RUB at 62 in September versus 63 previously. Raiffeisen's analysts say the Russian currency accumulated a significant valuation buffer after the sharp devaluation at the beginning of April 2018, making the currency better shielded against any systemic shocks like the Italian mini-crisis, the global trade conflict and the Chinese currency depreciation.

U.S. President Donald Trump's criticism of the Federal Reserve's rate hikes and his view that the dollar is strong caused the currency to fall on Friday but UniCredit's analysts believe the nearterm picture for the forex market hasn't changed dramatically. The EUR/USD "is still flipping alternately between moves towards 1.16 and over 1.17 in response to news on the trade row, given the lack of clear direction," UniCredit says.

July 23

After the Close:

Alphabet (GOOG). Consensus EPS $9.70, Consensus Revenues $32127.49 mln.

July 24

Before the Open:

3M (MMM). Consensus EPS $2.60, Consensus Revenues $8356.59 mln.

United Tech (UTX). Consensus EPS $1.86, Consensus Revenues $16255.22 mln.

Verizon (VZ). Consensus EPS $1.15, Consensus Revenues $31753.77 mln.

After the Close:

AT&T (T). Consensus EPS $0.89, Consensus Revenues $38447.16 mln.

July 25

Before the Open:

Boeing (BA). Consensus EPS $3.29, Consensus Revenues $23991.83 mln.

Coca-Cola (KO). Consensus EPS $0.60, Consensus Revenues $8538.77 mln.

Freeport-McMoRan (FCX). Consensus EPS $0.52, Consensus Revenues $4966.09 mln.

General Motors (GM). Consensus EPS $1.82, Consensus Revenues $36583.70 mln.

After the Close:

Barrick Gold (ABX). Consensus EPS $0.14, Consensus Revenues $1747.61 mln.

Facebook (FB). Consensus EPS $1.70, Consensus Revenues $13357.83 mln.

Ford Motor (F). Consensus EPS $0.31, Consensus Revenues $35648.17 mln.

Visa (V). Consensus EPS $1.08, Consensus Revenues $5090.56 mln.

July 26

Before the Open:

Altria (MO). Consensus EPS $1.00, Consensus Revenues $5022.87 mln.

Int'l Paper (IP). Consensus EPS $1.10, Consensus Revenues $5799.68 mln.

McDonald's (MCD). Consensus EPS $1.93, Consensus Revenues $5329.84 mln.

Yandex N.V. (YNDX). Consensus EPS RUB15.36, Consensus Revenues RUB29050.56 mln.

After the Close:

Amazon (AMZN). Consensus EPS $0.40, Consensus Revenues $53370.94 mln.

Intel (INTC). Consensus EPS $0.97, Consensus Revenues $16776.49 mln.

Starbucks (SBUX). Consensus EPS $0.60, Consensus Revenues $6254.76 mln.

July 27

Before the Open:

Chevron (CVX). Consensus EPS $2.09, Consensus Revenues $46621.54 mln.

Exxon Mobil (XOM). Consensus EPS $1.28, Consensus Revenues $71758.95 mln.

Merck (MRK). Consensus EPS $1.03, Consensus Revenues $10292.67 mln.

Twitter (TWTR). Consensus EPS $0.16, Consensus Revenues $697.35 mln.

• Hopes US Will Remain Level-Headed And Resolve Issues In Reasonable Manner

"To Iranian President Rouhani: Never, ever threaten the United States again or you will suffer consequences the likes of which few throughout history have ever suffered before. We are no longer a country that will stand for you demented words of violence & death. Be cautious!".

• President Trump Isn't Trying to Interfere in Currency Markets

• Says He and President "Fully" Support Fed Independence

• Resolving Trade Issues with Canada, Mexico Is a Big Priority

• "Wouldn't Minimize" Chance of Tariffs on All Chinese Imports to U.S.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1851 (3489)

$1.1809 (2360)

$1.1787 (886)

Price at time of writing this review: $1.1733

Support levels (open interest**, contracts):

$1.1665 (3206)

$1.1627 (3393)

$1.1586 (3721)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 13 is 87714 contracts (according to data from July, 20) with the maximum number of contracts with strike price $1,1850 (5340);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3265 (682)

$1.3220 (708)

$1.3194 (285)

Price at time of writing this review: $1.3142

Support levels (open interest**, contracts):

$1.3074 (1745)

$1.3044 (2111)

$1.3009 (2191)

Comments:

- Overall open interest on the CALL options with the expiration date August, 13 is 23979 contracts, with the maximum number of contracts with strike price $1,3600 (3206);

- Overall open interest on the PUT options with the expiration date August, 13 is 27153 contracts, with the maximum number of contracts with strike price $1,2950 (2325);

- The ratio of PUT/CALL was 1.13 versus 1.14 from the previous trading day according to data from July, 20.

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.