Shrugging off the GDP and jobless claims, miss the DIA and SPY briefly touched the sky, printing new records but was unable to hold there into the close.  Amazon reported another $100 billion quarter but missed expectations and guided lower slipping more than 200 points after the bell.  Though the futures suggest a little selling pressure, this morning, anything is possible as we digest more than 125 earnings reports and react to Employment cost and Personal income data before the open. 

Asian markets had a rough night closing in the red across the board, led by the NIKKEI falling 1.80%.  European markets are also retreating this morning, seeing red across the board as earnings roll out.  Ahead of another big day of data, the U.S. futures point to a lower open, with the NASDAQ leading the way down 1% after the AMZN miss. 

Economic Calendar

Earnings Calendar

On the Friday earnings calendar, we finish the week with more than 125 companies reporting.  Notable reports include ABBV, BLMN, BAH, COG, CPRI, CAT, CBOE, CERN, CVX, CL, XOM, HUN, ITW, JCI, LIN, LYB, NWL, PG, QSR, VFC, WPC, GWW & WY.

News & Technicals’

Amazon gave a weaker-than-expected outlook for the third quarter.  Sales topped $100 billion for the 3^rd quarter in a row but missed expectations and look to open more than 200 points lower this morning.  Tesla has agreed to pay $1.5 million to settle claims that one of the company’s updates temporarily limited maximum battery charging, paying owners $625 each.  The company also suffered a setback after a Tesla Megapack battery ignited in  Australia’s Victoria State.  The 19-member Eurozone economy grew by 2% in the three months ending in June, reporting an annual inflation projection to reach 2.2%.  Treasury yields are pulling back again this morning, with the 10-year falling to 1.247% and the 30-year dipping to 1.904% ahead of the June personal consumption index and employment cost index numbers.

Both the DIA and SPY briefly touched the sky, printing new record highs before slipping back before the close.  Though there appears to be a little selling pressure in the futures this morning, the DIA, SPY, and QQQ remain in bullish patterns.  A substantial miss on yesterdays GDP and jobless numbers topping expectations didn’t seem to bother the bulls at all as they continued to charge higher.  The China tech crackdown is also not slowing down the bullish activity, with CNBC reporting $3.6 billion flowing into the stocks in a week ending Wednesday.  The buy the dip crowd is still working hard.  The only index suffering technical damage is the IWM, still lingering below its 50-day average though well-off recent lows.  As we wind down the week, I will once again repeat; stay with the trend, avoid overtrading, and have a plan to protect your capital should the market stumble from these lofty valuations.

Trade Wisely,

Doug