DAILY MARKET UPDATE

July 17, 2019

Asia Pacific stocks were mostly lower on Wednesday. U.S. President Trump said late Tuesday that Washington and Beijing have a long way to go on trade, adding that America could place tariffs on an additional $325 billion worth of Chinese goods if needed. European bourses were also on the backfoot while earnings season gathered pace. Telecom equipment maker Ericsson dropped 11.2% after warning that the costs of winning new network business may negatively impact its profit margins in the second half of the year. U.S. stock markets ended in the red as earnings season headlines took center stage amid a dearth of macro readings. CSX conference call commentary, along with a Knight-Swift Transportation outlook cut, resulted in a large move lower in the Transports. Banks were under pressure after BAC and CMA followed JPM by cutting their FY19 NII outlook. Tech modestly reversed some of yesterday’s de-risking/unwind behavior and both Semis and Software rallied back. Rates slipped on both sides of the pond, and yield curves flattened. After the DOE reported big inventory builds in gasoline and distillates, WTI crude futures fell nearly 2% despite moderate weakness in the greenback. 

 

 – After Market Movers:

-EBAY Reports Q2 $0.68 v $0.63e, Rev $2.70B v $2.67Be; +5% afterhours
-IBM Reports Q2 $3.17 v $3.06e, Rev $19.2B v $19.1Be; +2% afterhours
-URI Reports Q2 $4.74 v $4.48e, Rev $2.29B v $2.26Be; cuts FY19 Rev and adj EBITDA guidance; -4% afterhours
-NFLX Reports Q2 $0.60 v $0.56e, Rev $4.92B v $4.93Be; paid domestic memberships decline q/q; -10% afterhours
-LLNW Reports Q2 -$0.03 v -$0.01e, Rev $45.9M v $47.3Me; -18% afterhours.