Good morning. US equity futures are moderately lower, SPX -14pts, we’re set to open at 3840. USD is +0.4% at DXY 108.27. The precious metals are rather mixed, Gold +$2, with Silver -1.0%. WTIC is -4.4% in the $99s (printing $98.75).
sp’60min
Summary
Yesterday saw early weakness, a recovery into the afternoon, but fading into the close. S/t momentum settled on the moderately low side.
Overnight futures have been leaning on the weaker side. I would expect considerable chop today… ahead of CPI-Wednesday.
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Yours truly holds…
SLB, KMI, RIG, CHPT
GOLD, AG, HL, KGC, CLF
I’m looking to pick up OXY within 1-2 days, and might add to each of my existing energy quartet. However, I should probably wait until the CPI data is out of the way.
Further, let me be clear… I’m VERY cautious right now, and I’m NOT short anything. The only thing I’m comfortable in buying is anything energy related.
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Early movers
AAPL +0.2%, Keybanc maintain ‘overweight’, 191>173
AMD -1.0%
AMZN -0.7%, its Prime Day’1 of 2.
APA -3.5%
AXP -2.6%… as consumers set to default on their CCs this summer
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BAC -1.2%
CCJ -2.0%
CCL -1.6%
CHPT -0.3%
CLF -1.1%
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COIN -2.8%
Bitcoin is -1.6% in the $19000s. Support 13/12k.
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DASH -3.4%
DB -3.8%, weak German/European financials
DVN -3.1%
DWAC -4.1%
FCX -2.7%, with copper -7cents to $3.35
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GME +0.8%, launches NFT marketplace.
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GPS -6.4%, WFC, overweight>equalweight, 16>10
KMI -1.5%
LAC -1.0%
LVS -1.6%
META -0.9%
OXY -3.0%
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PEP +1.1%, EPS $1.86 vs 1.74est. Rev’ y/y +5.2% to $20.2bn vs 19.5est. Positive guidance… as recession or no recession, people still need their snacks/soda.
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PTON +2.2%, will no longer manufacturer its own bikes. This isn’t a mid/long term positive!
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RIG -2.4%
SAN -5.8%, weak Spanish/European financials
SLB -3.0%
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TLT +0.9%, as yields cool
TSLA -0.7%
UAL -0.8%
UNG +2.9%, with Nat’ gas +13cents to $6.56
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VIX +3% in the 27s
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XOM -2.5%
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Overnight markets
Asian markets were significantly lower, whilst European markets are moderately lower…
Japan: -1.8% at 26336.66.
China: -1.0% at 3281
Germany: currently -0.6% at 12748
UK: currently -0.3% at 7173
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A note on the dollar…
The USD is currently net higher for July by +337bps at DXY 107.83. I’d note the breakout in April, after EIGHT years within a broad trading range. Such a breakout offers the 120s.
Reading around… I’m seeing the usual ‘dollar doom’ talk.
Yes, the value/purchasing power of the dollar is less as inflation climbs. Yet… would you want to be in any other currency?
Have a good Tuesday