US stock futures rose as bond yields declined and after Tesla published strong quarterly results. Futures linked to the Dow Jones rose by 25 points while those tied to the S&P 500 added 10 points. Meanwhile., US 10-year bond yield declined to 1.25% while the 30-year yield declined to 1.90%. At its peak this year, the 10-year rose to 1.776%. Therefore, this decline is a sign that investors are pricing in a lower inflation rate and a relatively dovish Federal Reserve in the near term. The Fed will start its meeting today and deliver its decision tomorrow.
US stocks are also tilting higher after Tesla published strong quarterly results as it overcame higher costs and supply shortages. The company made close to $12 billion in revenue in the second quarter, higher than the median estimate of $11.2 billion. The firm’s gross margin increased to 28.4%, which was substantially higher than in the first quarter. As a result, Tesla’s operating profit rose to more than $1.3 billion while net income rose to $1.4 billion. The earning season will continue this week, with companies like Ecolab, Archer-Daniels-Midland, Waste Management, Raytheon, Pulte Group, Microsoft, Amazon, and AMD set to publish.
Bitcoin retreated from a six-year high during the overnight session as investors took profit. The coin’s price declined to $36,920 from this week’s high of almost $40,000. Other altcoins like Ether, Cardano, and Ripple have also retreated. Bitcoin rose sharply during the weekend after bullish comments from people like Elon Musk and Cathie Wood. Speaking at the B Word conference, he said that he remained bullish on Bitcoin and that SpaceX had also bought some coins. Amazon also confirmed that it was looking at the crypto industry. Its adoption would incentivize other firms to start accepting it. Later today, Bitcoin, US dollar and stocks will react to the latest US consumer confidence data.
ETHUSD
The ETHUSD pair declined to 2,170, which was lower than this week’s high of 2,433. On the 4 hour chart, the pair is forming a cup and handle pattern. It is now at the handle section of this pattern. Also, it has moved to the 25-day and 15-day moving averages while the MACD is above the neutral level. Therefore, the pair will likely resume the upward trend later this week. A bullish breakout will be confirmed when the price rises above this week’s high at 2,433.
NDX100
The Nasdaq 100 index is hovering near its all-time high after the strong quarterly results by Tesla. It is trading at $15,113, which was slightly below the all-time high of $15,143. On the 4 hour chart, the index has moved above the short and long-term moving averages while the RSI and MACD have continued rising. The price is also above the important resistance at $15,000, which was highest on July 14. Therefore, the index will likely maintain an upward momentum as earning season continues.
EURUSD
The EURUSD continued its consolidation phase ahead of the latest consumer confidence and FOMC decision data. The pair is trading at 1.1803, which was along the upper side of the falling wedge pattern. The MACD and the RSI have also tilted upwards modestly. The pair will likely remain in this range and then break out higher after the FOMC decision.
