Nasdaq suffered its second-worst day of the year amid earnings disappointment and rising yields - Newsquawk Asia-Pac Market Open

US stocks mostly tumbled with the declines led by the Nasdaq 100 which posted its second-worst day of the year as poor earnings receptions for NFLX and TSLA catalysed a sharp pullback, while a higher yield environment also provided headwinds for equities ahead of Friday's monthly stock options expiry and Nasdaq 100 rebalances.
USD strengthened and the DXY climbed to just shy of the 101.00 level following the initial jobless claims data which fell to multi-month lows and was accompanied by a jump higher in US yields and the risk aversion across stocks.
Looking ahead, highlights include Japanese National CPI, New Zealand Credit Card Spending, Supply from Japan.

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Highlights include Japanese National CPI, New Zealand Credit Card Spending, Supply from Japan.

US TRADE

US stocks mostly tumbled with the declines led by the Nasdaq 100 which posted its second worst day of the year as poor earnings receptions for NFLX and TSLA catalysed a sharp pullback, while a higher yield environment also provided headwinds for equities ahead of Friday's monthly stock options expiry and Nasdaq 100 rebalances.
SPX -0.68% at 4,534, NDX -2.28% at 15,466, DJIA +0.47% at 35,225, RUT -0.89% at 1,967.
Click here for a detailed summary.

NOTABLE HEADLINES

Fed announced a meeting on July 27th to discuss proposed bank rules, according to Reuters.
USTR's Tai had a direct and candid exchange with EU's Dombrovskis regarding the October 31st deadline for a steel and aluminium trade agreement.
Apple (AAPL) is reportedly facing challenges assembling its two upcoming new iPhone models, the iPhone 15 Pro and Pro Max, which could lead to a shortage of units at the launch in September, according to The Information citing sources.

DATA RECAP

US Philly Fed Business Index (Jul) -13.5 vs. Exp. -10.0 (Prev. -13.7)
US Leading Index MM (Jun) -0.7% vs. Exp. -0.6% (Prev. -0.7%)
US Existing Home Sales (Jun) 4.16M vs. Exp. 4.2M (Prev. 4.3M)
US Initial Jobless Claims 228.0k vs. Exp. 242.0k (Prev. 237.0k)
US Continued Jobless Claims 1.754M vs. Exp. 1.729M (Prev. 1.729M)

US Treasuries were heavily pressured ahead of supply and after low initial jobless claims data although the curve unwound its initial flattening bias as the front end recovered somewhat.

USD strengthened and the DXY climbed to just shy of the 101.00 level following the initial jobless claims data which fell to multi-month lows and was accompanied by a jump higher in US yields and the risk aversion across stocks.
EUR suffered against the firmer dollar which dragged the single currency beneath the 1.1200 handle.
GBP extended on declines with GBP/USD now at a sub-1.2900 level, while the focus turns to UK Retail Sales.
JPY was pressured against the dollar with USD/JPY lifted above 140.00 by widening yield differentials.

Crude was firmer on what was a choppy session amid mixed data, dollar strength and a ramp in Chinese oil imports.
OPEC+ moved the online panel a day later to August 3rd (prev. August 2nd), according to Reuters sources.
US Senate voted to block sales of US oil reserves to China, according to Bloomberg.
Freeport-McMoran (FCX) CEO said copper demand is much stronger than headline economic data would indicate and fundamentals in the copper market are positive despite frequently expressed concerns about a global economic slowdown.

White House's Kirby said cluster munitions are now in Ukrainian hands and are being deployed in the field, while he expects to see another round of Ukraine support in the coming days.
Ukraine Defence Ministry said it could consider all ships travelling to Russia and Ukrainian ports occupied by Russia in the Black Sea as potential carriers of military cargoes from July 21st.
Russia lifted restrictions on navigation for cargo vessels via the Kerch Strait, according to sources cited by Reuters.
Russia is not preparing to attack civilian ships in the Black Sea despite US claims, according to RIA quoting the Russian ambassador to the US.
Russian Kremlin said Poland's decision to bolster its border with Belarus because of Wagner's presence is a cause for concern, while it called Poland aggressive and said the hostile attitude requires heightened attention.
Belarusian military is to undertake exercises with Russia's Wagner Group fighters near the border with Poland, according to the Belarusian Defence Ministry.
China and Russia started joint military exercises in the East Sea, according to state media.
IRGC Commander warned of reprisals to any Co. that is willing to unload Iranian oil from the seized tanker and would hold the US responsible for such action, according to Tasnim.

North Korean hackers reportedly breached US firm JumpCloud to gain access to crypto companies, according to Reuters citing sources.

NOTABLE APAC HEADLINES

Chinese President Xi urged China to strengthen farmland protection, according to state TV.
China’s Vice Premier said will prevent fiscal and financial risks in new infrastructure.
China's NDRC Vice Chair said they will roll out supporting measures to remove difficulties facing the private sector.
China’s market regulator will speed up the creation of rules, guidelines and standards for the protection of trade secrets in high-tech industries and strategic emerging industries.
Japan and India have signed a memorandum of cooperation for chip development, manufacturing and R&D, according to Indian press ANI.

NOTABLE HEADLINES

UK PM Sunak reportedly eyes holding the UK general election in November 2024 to allow the economy as much time as possible to recover before going to the polls, according to Bloomberg citing sources.
UK Treasury said banks will be forced to explain and delay any decision to close an account under new rules.
ECB made an adjustment to its banking stress test submissions and increased the capital hit impact to around 5ppts from about 3.5ppts, according to Bloomberg.

DATA RECAP