Markets await tomorrow’s US CPI data
US equities finished lower in fairly quiet Tuesday trading as investors navigated a batch of disappointing company reports ahead of a key inflation reading.
Investors are awaiting the latest reading of the July consumer price index, due tomorrow. The report is expected to show a slight slowdown in inflation, thanks in part to a fall in oil prices, which could inform the market about the next steps for the Federal Reserve. The market is expecting the CPI to rise by 0.2 per cent on a monthly basis, or 8.7 per cent year-over-year.
Overnight the S&P 500 fell 0.42 per cent to 4,122.47, while the Nasdaq Composite dropped 1.19 per cent to 12,493.93. The Dow Jones Industrial Average shed 58.13 points, or 0.18 per cent, to close at 32,774.41.
The declines came after chipmaker Micron warned that revenue may fall short of its prior guidance because of “macroeconomic factors and supply chain constraints.” The stock fell more than 3 per cent.
Overall it’s been a rough week for chipmakers. On Monday, weaker-than-expected revenue guidance from Nvidia weighed on the group, and those stocks extended their losses on Tuesday.
The S&P 500 has climbed for three straight weeks, but earnings season has featured demand warnings from executives of major companies.
Across the sectors energy rose while consumer discretionary fell. The worst performing industries were semiconductors, homebuilders, gaming, and travel related companies. Energy, insurance, banks, managed care, steel, food held up better.
Coinbase shares dropped in extended trading on Tuesday after the crypto exchange reported a loss of over $1 billion in the second quarter and missed analysts’ estimates for revenue.
Ford Motor on Tuesday said it is increasing the starting prices of its electric F-150 Lightning pickup due to “significant material cost increases and other factors.”Raw material costs for batteries for electric vehicles more than doubled during the coronavirus pandemic, according to a recent report by consulting and research firm AlixPartners
Currency wise the US Dollar index posted a slight decline with some weakness vs euro but a bit better on yen cross. One Australian dollar has weakened compared to the US dollar on Tuesday, buying 69.66 US cent (Tue: 69.79 US cents), 57.69 Pence Sterling, 94.10 Yen and 68.19 Euro cents.
Commodities
Iron ore futures are pointing to a 1.6 per cent fall.
Gold prices gained 0.4 per cent on Tuesday supported by a softer dollar, while market participants awaited U.S. inflation data for cues on the Federal Reserve’s policy tightening path.
Silver was down $0.13 or 0.6 per cent to US$20.48 an ounce.
Copper was down $0.10 or 0.03 per cent to US$358.55 a pound.
Oil lost $0.26 or 0.3 per cent to US$90.50 a barrel
Bitcoin futures were down 3.9 per cent.
The SPI futures are pointing to a 0.6 per cent fall.
Figures around the globe
Across the Atlantic, European markets closed mixed. Paris fell 0.5 per cent, Frankfurt lost 1.1 per cent and London’s FTSE closed 0.1 per cent higher.
Asian markets closed mixed. Tokyo’s Nikkei lost 0.9 per cent, Hong Kong’s Hang Seng fell 0.2 per cent and China’s Shanghai Composite closed 0.3 per cent higher.
Yesterday, the Australian sharemarket added 0.1 per cent to 7030.
Ex-dividends
There is one company set to trade without the right to a dividend.
Australian Foundation Invest Company (ASX:AFI) is paying 14 cents fully franked
Dividends payable
There are two companies set to pay eligible shareholders today.
Metcash (ASX:MTS)
Praemium (ASX:PPS)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network
Source: Finance News Network
