US open: Stocks mixed Snap, Twitter disappoint

US futures

Dow futures +0.18% at 32100

S&P futures +0.1% at 3960

Nasdaq futures -0.35% at 12570

In Europe

FTSE +0.37% at 7250

Dax +0.8% at 13320

Euro Stoxx +0.4% at 3616

Learn more about trading indices

Stocks mixed but set for weekly gains

US stocks are pointing to a mixed start to trading on Friday, with the Nasdaq lower after Snap and Twitter earnings disappoint.

Earnings season is in full swing and so far have been broadly ahead of expectations. Rising costs, the stronger USD and slowing growth are areas that remain in focus.

Whilst Netflix and Tesla beat forecasts this week, boosting optimism, Snap is hurting the mood today after weaker earnings.

The markets have risen higher across the week, boosted by upbeat earnings and tempered expectations of aggressive Fed rate hikes.

The big test for the rally will be next week when faced with the Fed interest rates decision and more earnings from big tech, which have already indicated slower hiring and therefore slower spending.

Looking ahead US PMI data is expected to show that business activity growth slowed,. With the composite PMI is expected to slip to 51.7 in July from 52.3 in June.

In corporate news:

Snap was the first major tech firm to report Q2 earnings, and the picture was pretty grim, with the company falling 25% pre-market. The stock missed the top and bottom line and said that it plans to slow hiring substantially as it battles slowing revenue.

Twitter also disappointed on top and bottom lines citing weaker advertising revenue and uncertainty surrounding the Musk takeover.

Where next for the Nasdaq?

The Nasdaq is extending its rally from 2022 lows, retaking the 50 sna, which, combined with the bullish RSI, is keeping buyers optimistic about further gains. Buyers need to break above 12585, the 100 sma, and the June high. On the flip side, it would take a move below the 50 sma at 12040 to negate the near-term downtrend.

FX markets – USD rises, EUR falls.

USD is rising but is set for losses across the week as investors pare back expectations of a more aggressive rate hike. Higher than expected jobless claims yesterday raised recession concerns.

EURUSD is falling after PMI data showed that business activity slipped into contraction. The composite PMI fell to 49.4 in July, worse than the 51 forecasts and down from 52 in June. The data doesn’t bode well for GDP growth in the quarter.

GBP/USD is falling against a stronger USD and despite retail sales and business activity falling less than feared. Retail sales slipped -0.1% YoY, better than the -0.3% feared and up from -0.5%. The composite PMI data fell to 52.8, down from 53.7.

GBP/USD -0.06% at 1.1950

EUR/USD -0.5% at 1.0180

Oil falls by $5

Oil prices are falling, extending losses from the previous session and puts oil on track for losses of around 2.5% across the week, the third straight week of declines.

The weakening global demand outlook combined with the resumption of Libyan crude oil output is dragging on oil prices.

Macro data points to a global economic slowdown just as central banks are aggressively hiking rates. Slower growth hurts the demand outlook.

WTI crude trades -4.5% at $95.20

Brent trades -4% at $99.00

Learn more about trading oil here.

Looking ahead

N/A

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.