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Equity markets basically unchanged on Thursday
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Bond yields tick up higher after high PPI inflation print
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eBay’s third-quarter forecast missed analysts’ expectations
US equity markets opened mostly flat on Thursday after two economic data releases. Firstly, jobless claims were in-line with expectations as the print showed that 375k Americans filed for unemployment benefits last week. However, US PPI inflation for July came in above estimates. The headline number rose to 7.3% YoY (vs exp. 7.3%) while the core gauge advanced to 6.2% YoY (vs exp. 5.6% YoY). US bond yields ticked up higher after the publication with the 10-year benchmark yield up by 3 bps. The technology-heavy Nasdaq100 (US100) was an underperformer, falling roughly 0.30%. Other major US indices were trading flat.
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Create account Try a demo Download mobile app Download mobile appUS100 was hovering near the 15,000 pts mark ahead of today’s opening bell. However, the index fell after the US market open and plunged below an upward trend line. The area near 14,900 pts may turn out to be the next support if declines continue. US100 is down by 0.30% as the index remains under pressure amid rising US bond yields. Source: xStation5
Company News
NIO (NIO.US) shares gained slightly after the electric vehicle producer posted a narrower second-quarter loss. Revenues came in at $1.308 billion (+127,2% YoY), exceeding the consensus estimate as well ($1.298 billion). Second-quarter vehicle margin amounted to 20.3% vs 21.2% in the first quarter and 9.7% a year ago. Nio’s deliveries growth slowed, but the company still had its record quarter (21,896 vehicles delivered). The firm expects to deliver between 23,000 and 25,000 vehicles in the third quarter.
eBay’s (EBAY.US) second-quarter earnings topped analysts’ estimates. The e-commerce company posted adjusted profit of $0.99 per share vs the consensus estimate of $0.97 per share. Nevertheless, revenues plunged about 7% to $2.67 billion from a year earlier and missed expectations of $2.97. eBay’s third quarter revenue forecast came in below Wall Street estimates as well.
eBay (EBAY.US) shares have been moving in an upward channel recently. The area near $64.75 seems to be an important level for now. Also, the price reacted to the 200-day moving average (orange line) three times in recent months (orange circles). Shares climbed above the 50-day moving average shortly after the opening bell. Source: xStation5
Moderna (MRNA.US) shares rose almost 5% after reports that said that Food and Drug Administration (FDA) would authorise a third shot of Covid-19 vaccine as soon as Thursday for people with weakened immune systems.
Ford’s (F.US) electric vehicle battery joint venture with South Korea’s SK Innovation will extend beyond North America into Europe - a senior Ford executive said. Chief product platform and operations officer did not provide timing for when it would open a plant in Europe. SK Innovation declined to comment.
