Earnings Push Stocks Higher, Bitcoin Tries To Hold $22k
MarketPulse | Jul 19, 2022 02:06PM ET
US stocks are rallying as corporate earnings haven’t been terrible and on optimism that Russia won’t delay the restart of gas flows on Nord Stream 1 pipeline. Earnings have been coming in mixed but nothing too terrible that is unnerving investors. Even reports that Apple (NASDAQ:AAPL) is slowing hiring is not enough to sink risk appetite. Stocks are already down significantly this year and disastrous outlooks are what was needed to send the major indexes to fresh lows.
Two big risk events on this week’s calendar are the ECB decision and the potential restart of the Nord Stream 1 pipeline. Reports have been circulating that Russia will not play games and delay the restart of the key pipeline, but they might reduce the levels given to Europe, which should keep supporting natural gas prices.
h2 Housing/h2Building permits are dropping which confirms the cooling of the housing market. The weakening trend in the housing market will continue as the Fed won’t be easing up with its aggressive tightening schedule. New home construction in June fell to the weakest levels since September, while residential starts posted a surprising decline. Single-family construction is obviously weakening as the consumer struggles with widespread inflation and that sends permits to a 2-year low. The housing market is cooling quickly and that should continue as inventories build up. Tomorrow’s existing home sale data could show sales of previously owned US homes plunged to two-year lows and more than halfway towards the pandemic lows.
h2 Bitcoin/h2Bitcoin is holding above the USD 22,000 level as the cryptoverse awaits any major announcements or financial commitments from Bloomberg’s crypto summit. Galaxy Digital CEO Mike Novogratz noted that more crypto hedge funds will fail, but did hold out optimism that Bitcoin can still get to $500,000 in five years. Novogratz acknowledged he was ‘darn wrong’ about how much leverage was in the cryptoverse.
US Senators’ Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) pre-recorded interview was played at the key summit and highlighted that they expect their crypto legislation to be deferred until next year.
The dollar has been in freefall for a few days and that has provided some underlying support here for crypto. This is a massive week for bitcoin and if prices can continue to grind higher, more investors might start to believe the bottom is in place. Earlier in the week, reports that crypto miners are abandoning their bitcoin positions was not enough of a bearish catalyst to send prices back to the recent lows.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.