1. Home
  2. Live Market Analysis
  3. US Stock Markets Spike as Earnings Pick Up
US Stock Markets Spike as Earnings Pick Up

US stock markets are rebounding from the poor performance at the start of the week as companies continue to release better-than-expected earnings. According to CNBC, on Tuesday all three major indices were trading above their 50-day moving averages for the first time since April. And the rise continues this morning with the Dow Jones Industrial Average climbing by 0.52%, the S&P 500 by 0.58%, and Nasdaq 100 by 0.61%. DOW30 - 20.07.2022.jpg

This comes a couple of days after Monday’s indecisive markets turned early gains into losses towards the end of the trading day. Of course, the dip was a direct result of Apple announcing a hiring freeze, which traders perceived as a sign that worse-than-expected earnings are underway. But as companies continue to release their earnings reports, it is becoming apparent that while some companies are reporting losses, others are exceeding expectations.

According to Fundstrat, 43 of the S&P 500 companies kicked off the earnings season on a positive note with roughly 60% of them beating profit and sales expectations. For the DJIA, Goldman Sachs blew investors away when it reported a profit of $2.9 million at $7.73 per share, against the expected $6.61 per share. For Nasdaq, Netflix took the win when its stock jumped by 7% in after-hours trading. The company announced that it lost 970,000 subscribers of the projected 2 million in the second quarter. The streaming service, which still boasts 220.67 million subscribers, also said that its planning to introduce a lower-cost ad-supported subscription tier early next year.

SNP500 - 20.07.2022.jpg

Advances in the stock market have led some analysts to believe that investors' risk appetite is turning. According to one of the senior marketing strategists at the NYSE, Michael Reinking, “Once again we’re seeing the risk on sentiment within equity markets.” The general assumption amongst traders is that the markets reached rock bottom, which means that they can only go upward now. The question remains: Are strong earnings enough to push the markets higher?

NASDAQ - 20.07.2022.jpg

While the markets appear to be rebounding, the same cannot be said about the weakening US Dollar. The currency is struggling to find support despite the Federal Reserve raising interest rates in an attempt to curb high inflation. The US Dollar Index has shed over 2.60% since reaching a 19-year high just last week.

Traders will be keeping an eye out for the rest of the companies that are scheduled to release their earnings this week. These include Tesla, AT&T, Twitter, Verizon, and others. Another economic event that traders will be monitoring is the Federal Reserve hike at the end of this month. This meeting will determine how many basis points the interest rate will increase. So far the indication has been that it will be 75 basis points, however, some fear that it might be 100 basis points instead.

IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail client investors 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.

Copyright © 2022 – All rights reserved.

NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.

Any trademarks appearing on this website are the property of their respective owners.

The NAGA Group AG is the holding company of various companies, such as NAGA GLOBAL LLC, NAGA MARKETS EUROPE LTD, NAGA Technology GmbH, NAGA Pay GmbH and has a close link with NAGAX Europe OÜ.

RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading derivatives with this provider. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.

Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.

Restricted countries: NAGA Group AG does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Australia, Barbados, Belgium, British Virgin Islands, Burkina Faso, Cambodia, Canada (including Quebec), Cayman Islands, Central African Republic, Congo, Democratic People's Republic of Korea, Democratic Republic of the Congo, Gibraltar, Guam, Haiti, Iran, Iraq, Isle of Man, Israel, Jamaica, Jordan, Libyan Arab Jamahiriya, Mali, Monaco, Morocco, Myanmar, Nicaragua, Philippines, Russian Federation, San Marino, Senegal, Serbia, Somalia, South Sudan, Sri Lanka, Syrian Arab Republic, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Kingdom, US Minor Islands, US Virgin Islands, USA, Vanuatu, Yemen, Zimbabwe.

Member of NAGA Group AG that is publicly listed in Frankfurt Stock Exchange.
close icon
By using this website, you agree to our cookie policy