After four weeks of bullish action, it appears the market may be reaching the height of its rally.
Experts from BlackRock Inc. (NYSE: BLK) and JPMorgan Chase & Co. (NYSE: JPM) have been warning the public that the rally experienced in the last month is bound to be met with resistance soon, a premonition they attributed to worsening global economic conditions.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY) has, perhaps, begun validating these beliefs, declining 1.16% last week and starting off Monday by gapping down more than 1%. Cboe Global Markets Inc. (BATS: CBOE) reports that European exchange-traded funds (ETFs) like the iShares Core MSCI Europe ETF (NYSEARCA: IEUR), iShares Core DAX UCITS ETF (BIT: EXS1) and Lyxor CAC 40 ETF (EPA: CAC) have all experienced price drops last week, too.
Cryptocurrency leaders Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have mirrored the equities market, each declining more than 10% last week. Exemplifying the market’s downturn is Zoom Video Communications Inc. (NASDAQ: ZM), this week’s chart of the week following a disappointing earnings report.
Finally, Cboe notes upcoming earnings that may lift investors’ eyebrows in the week to follow.
Quick BitesExchange-Traded Funds
The SPDR S&P 500 ETF decreased by 1.16% last week, hinting at a potential top following a strong rally throughout June, July and the first half of August.
The Invesco QQQ Trust Series 1 (NASDAQ: QQQ) increased by 2.28% last week, following suit with the SPY’s overall movements.
The iShares Russell 2000 ETF (NASDAQ: IWM) rose by 2.85% last week, the highest increase among the three exchange-traded funds recorded in this series.
The Cboe Volatility Index™ (INDEXCBOE: VIX) decreased by 0.15% last week.
World Markets
The iShares Core MSCI Europe ETF (NYSEARCA: IEUR) decreased by 3.69% week-on-week.
The iShares FTSE 100 UCITS ETF (LSE: ISF) increased by 0.81% week-on-week, showing unusual strength.
The iShares Core DAX UCITS ETF (BIT: EXS1) decreased by 1.86% week-on-week.
The Lyxor CAC 40 ETF (EPA: CAC) decreased by 0.98 % week-on-week.
Chart Of The Week: ZM
Shares of telecommunications company Zoom Video Communications tumbled following an earnings report that surprised Wall Street analysts.
On Aug. 22, the company reported an earnings per share (EPS) profit of $1.05, a figure 10% greater than consensus estimates. The positive EPS figure, however, was eclipsed by the company’s revenue miss, which saw it record $1.099 billion instead of the $1.116 billion estimate.
The small deviation — amounting to 1.45% — was enough to drive the company’s stock from $97.44 a share to $84.56 on the next day’s open, a 13% decline overnight.
Since its height in October 2020, the company’s stock has fallen a whopping 86%.
Major Cryptocurrencies
Bitcoin decreased by 11.48% last week following weeks of upward momentum. The cryptocurrency remains in a downtrend on the weekly and daily charts.
Ethereum decreased by 16.49% last week, completely erasing the week prior’s upward movement.
Solana decreased by 18.7% and closed at a price of $36.47 per coin.
Upcoming Earnings Releases
A number of high-end companies report earnings in the following week, including:
Xpeng Inc. (NYSE: XPEV) – EPS estimate: -$2.61
Mawson Infrastructure Group (NASDAQ: MIGI) – EPS: $0.23
Urban Outfitters Inc. (NASDAQ: URBN) – EPS estimate: $0.70
Nvidia Corp. (NASDAQ: NVDA) – EPS estimate: $0.49
Salesforce Inc. (NYSE: CRM) – EPS estimate: $1.02
Snowflake Inc. (NYSE: SNOW) – EPS estimate: -$0.01
Royal Bank of Canada (TSE: RY) – EPS estimate: $1.97
Toronto-Dominion Bank (NYSE: TD) – EPS estimate: $2.04
Peloton Interactive Inc. (NASDAQ: PTON) – EPS estimate: -$0.72
Dell Technologies Inc. (NYSE: DELL) – EPS estimate: $1.64
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Michele Ormont
