Summary:
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US indices remain near weekly highs
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Uber shares to start sharply lower
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US inflation drops; Canadian employment disappoints
The final session of what has been a topsy turvy week for US stock markets could well prove decisive with the price action in the next 7 hours potentially revealing where the path of least resistance lies going forward. Another solid day of gains would amount to a victory for bulls who would point to a 150+ point bounce off the lows and a large hammer on the weekly chart as proof that the worst of the sell-off is behind us. On the other hand if we get a red session then the past 3 days of gains could be seen to have run their course and this would also see the market chalk up a weekly loss.
The S&P500 is trading back around the level it began the week ahead of a potentially pivotal session. The market is also back between the 8/21 EMAs with highs around 2940 of particular interest. Source: xStation
After rival ride-hailing firm Lyft beat the street earlier this week, expectations were raised ahead of Uber’s latest trading update, with the latter gaining as much as 7% when the former announced the news. The figures were always going to face intense scrutiny as the first released since the company went public and unfortunately for investors the results were a disappointment. A loss of $5.2B for the quarter is even worse than expected while the turnover of $.287B was also below consensus forecasts of $3.05B. The stock is called to open lower by around 8% this afternoon.
The bulk of the recent gains in Uber are expected to be handed back on the open with the stock called to start heavily lower. Source: xStation
On the economic data front there’s been the latest inflation figures from the US and the most recent employment data from Canada in the past hour.
US PPI final demand for July came in at 1.7% as expected.. The core reading showed some deviation though with a print of 2.1% vs +2.3% expected. Source: XTB Macrobond
Canadian jobs figures unexpectedly dropped in July, ending what has been a good run higher in recent months. Source: xStation
USDCAD spiked higher after the releases with the move largely due to a drop in the Loonie. Price spiked by 70 pips within 30 minutes of the release but the gains have since been pared back somewhat. Source: xStation
