US inflation data and Chevron earnings
| Nasdaq => The pair Nasdaq rises above 12800
Procter & Gamble => The stock trades at a 2-month high Exxon Mobil => The stock trades at a monthly high |
Nasdaq looks to inflation data
The Nasdaq rose for a second day despite disappointing economic data. US GDP was much weaker than expected.
The US economy shrank for a second straight quarter, putting the world’s largest economy into recession – two consecutive quarters of negative growth. However, stocks pushed higher, still boosted by the less hawkish than expected Federal Reserve.
Today attention turns to the release of PCE, the Fed’s preferred inflation measure. Hotter than expected inflation could pull stocks lower as aggressive Fed bets build again.
| US GDP Q2 | Actual: -0.9 (1.6) | Previous: -1.6% |
Where next for Nasdaq?
Nasdaq has extended its rebound from the 2022 low from 11036, rising above its 50 sma, and has run into resistance at 12930, the 100 sna, and June high, which could prove a tough nut to crack.
The RSI supports further upside. A break above 12930 is needed to extend the bullish upside to 13550, the May high. On the flip side, failure to retake 12930 could see the index drop to support to 12210, the July 8 high, and 12000, the round number and 50 sma. Below here, 11500 comes into play.
Procter & Gamble
Procter & Gamble is due to report today, and expectations are for EPS of $1.23, up 8% yearly on revenue of $19.4 billion.
The earnings come as the share price has stayed roughly flat over the past 12 months. While sales are rising, profit margins and management outlook will be in focus as the firm faces mounting cost pressures.
P&G has a wide range of products which, like Unilever, will likely serve it well. Last quarter’s organic revenue growth jumped 10%, showing consumers continued to flock to its products despite inflation. However, earnings are bright with rising costs and supply chain issues expected to impact the bottom line.
Exxon Mobile Q2 earnings preview
Exxon Mobile is due to release Q2 earnings.
The Street forecasts that the oil and gas giant will report adjusted earnings of $16.1 billion in Q2, up from $4.7 billion in the same period a year earlier. This equates to an EPS of $3.84. The oil and gas sector expects bumper profits in the quarter as oil and gas prices are considerably higher than where they were at the start of the year.
The Russian invasion of Ukraine and subsequent sanctions on Moscow mean that oil prices soared and are expected to remain supported. Expectations are that oil prices were at $105 on average across the quarter compared to $62 the year before.
Support can be found at 91.10 (50 sma) and 87.50 (100 sma).
Resistance for the index can be seen at 98.80 (June 14 high) and 100 (round number).
