Friday’s Market Minute
- Global stocks are mixed on the last trading day of the month, with Asia holding back on recovery concerns and Europe and the US rising on high-tech gains.
- Apple, Amazon, Facebook and Google have all surpassed Wall Street forecasts, and revenue rises to $ 205.2 billion collectively.
- U.S. growth concerns, however, push the dollar to a two-year low, and gold to an all-time high, in overnight trading.
- U.S. coronavirus cases increase by more than 68,000 on Thursday, for a total of 4.6 million.
- Global oil prices have rebounded thanks to a weaker U.S. dollar, but demand concerns remain strictly crude to $ 40 per barrel trading scale.
- U.S. equity futures suggest a firmer open on Wall Street ahead of gains by Merck, ExxonMobil, Chevron and Colgate ahead of the start of trading and inflation and personal consumption data in -8: 30 am Eastern time.
Wall Street futures extended Friday’s gains, driven by gains for the largest U.S. tech stocks following blockbuster gains after yesterday’s close of trading, but steep concerns for the fate of the global economic recovery, and rising rates of coronavirus infection, continue to cloud investor sentiment.
Apple Inc. (AAPL) ̵1; Get a Report alone will add at least 150 points to the Dow Jones Industrial Average at the start of trading, thanks to the pre-stock market which rose 6% after last night’s earnings report, which included nearly $ 60 billion in revenue and better than expected bottom line of $ 2.58 per share.
Apple’s plans to share its shares, which are a current trade north of $ 400 each, could hold gains for the Dow, given the technology giant’s impact on the average measured in -price.
Amazon Inc. (AMZN) – Get a Reportalso will provide a big boost to both the S&P 500 and the Nasdaq, with shares up 5.4% in the previous market after the online retailer posted record quarterly profits on sales of nearly $ 90 billion.
However, the harsh reading of the second quarter of GDP on Thursday, which showed an annualized contraction of 32.9% – the slowest since records began – as well as the recovery in the unemployment claims of each week, were strong reminders for investors that any domestic recovery would be based on taming the spread of cornavirus, which infected 4.6 million Americans and killed at least 154,000.
In fact, those concerns are being expressed much more dramatically in the value of the U.S. dollar than they are in stocks, with the greenback falling to a two-year low against a basket of global business peers. overnight, while its decline in July to about 5%, mostly in a decade.
Gold prices also had their best month in nearly five years, rising nearly 11% since the end of June to a record high of $ 1,974.00 per ounce in overnight trading as new orders of coronavirus locks are put in place in the UK, and Japan has threatened to impose new restrictions on movement and business in Tokyo amid a new outbreak in the capital.
Meanwhile, stocks are set for mixed opening bell gains on Friday, despite the powerhouse impact from Amazon, Apple, Facebook (FB) – Get a Report and Google (GOOGL) – Get a Report, with future Dow-linked contracts suggesting a 55-point advance and those tied to the S&P 500, which is 4.7% for the month, indicating a stronger 15-point jump.
Meanwhile, Nasdaq Composite futures are leading to a 180-point gain that opens the bell that could boost the technology-focused index to a whole new all-time high.
European stocks booked solid early gains, with the Stoxx 600 rising 0.72% in early trading, with a 0.8% gain for the DAX performance index in Germany and a 0.6% gain for the -FTSE 100 in London.
The euro, however, is on its best month against the dollar in a decade, after touching the 1.19 level in overnight trading for the first time since May 2018, with the pound rising to four and a half months of 1.3134 against the decline of the greenback.
The weakness in the Dollar helped global oil prices win higher on Friday, despite demand concerns linked to the return of COVID-19 life and mixed industrial data from China.
WTI contracts for September delivery, the U.S. benchmark, 30 cents higher than their closing Thursday in New York and were changing hands by $ 40.22 each barrel at the start of European business while Brent contracts for September, the global benchmark, were considered 30 cents higher at $ 43.08 per barrel.
Overnight in Asia, Japan’s Nikkei 225 fell 2.82% over the session to bring the benchmark to negative territory for the month, driven by last night’s decline on Wall Street and yen stronger, while the ex-Japan MSCI index of the region’s broad, the region’s Wide share price measure, fell 0.31% in the final hours of trading.