 Okay, very good morning Tuesday 27th of July. I hope you're doing well in this briefing We'll talk about the record high close on Wall Street again. We'll talk about Tesla earnings I'm gonna talk about the regulatory crackdown in China UK COVID pound out performing yesterday and why And then also we're gonna have a look at a preview for a couple of the metrics to look out for with Apple Microsoft and alphabet or Google reporting aftermarket tonight So quick look at the charts to kick things off and as Europe is coming into the market Just seeing a bit of a pickup in the dollar index, which is testing up in the Dixie at around 9267 which was the high that we saw pretty much on the US exit last night And so as such seeing a bit of downward pressure just being exhibited in the major currency pairs You're a dollar just coming down towards its pivot level Respecting then a relative kind of range that we've been looking at of late over recent sessions cable Just breaking some of the price action that was seen as we were going in from the Extension of gains into the European close yesterday Quite a nice trend line there just being respected in the short term and from the overnight Asia pack session We're just fading down probably keeping an eye on that low that we saw Going into late US trading hours yesterday at 138 13 looking at sterling futures decent move yesterday actually in sterling Managing to break out of that downward trend line Finding some support and a decent area at 137 43 and really taking a bit of a lift Just while we're on sterling a quick word on the COVID front. This was quite an interesting piece that came out in the overnight telegraph release So first off UK is reportedly considering easing restrictions from the US and The EU and in other news and in the telegraph leaked data from the UK showed that over half of COVID hospitalizations were patients who only tested positive after admission Which suggests that large numbers were being classified as hospitalized by COVID when actually they were admitted with other ailments while experts noted it meant that national statistics may greatly overstate the levels of pressure on the NHS which of course is one of the main fears so this would Obviously paint a more positive picture on the already developing numbers and you might have seen I tweeted if you want these graphics I'm showing right now some COVID updates from the FT and This is the kind of week-on-week change in daily cases that we've been seeing of course we've had some consecutive declines of a rather rapid fashion of COVID cases in the UK, which is somewhat against expectations of what the market was very much prepping up for kind of us moving north towards that 100k marker and that's not to say we still might not see some upside pressure Of course as we start to see the effects of freedom they start to filter in But as you can see that rolling average has been declining, but has been getting more shallow of late So definitely warrants watching but one of the positive things here is that hospital admissions have been tracking cases one week earlier And of course then that means that he could see admissions flattened and begin to fall in the coming Days and if you layer in the fact that perhaps then according to the telegraph a lot of these people were actually Admitted for other ailments not actually COVID well then if there is some kind of data methodology update to these numbers then that's the effects going to be even more kind of positive in terms of a lower hospitalization rate the other thing then is Why is it declining that that case rate and the FT article last night was quite interesting because this is a graphic literally mapping Daily new cases among men aged 20 to 34 And it's looking at the corresponding pickups then that were seen in the spiking cases around each of the England Euro group stage and Subsequent up to the final where against Italy you saw the biggest outbreak where of course you probably would have seen those scenes that That were happening at Wembley and around London at the time And so now that the euros has gone that sex gap has now completely disappeared So how much of the case rises that we were seeing that kind of very sharp Growth rates and acceleration in cases were down to the euros Evidently quite a lot and so that with school ending and other factors as well We'll continue to look at this quite keenly But as I said the pound seeing a bit of upside opportunity yesterday And Brexit still bit of a standoff on that northern Irish protocol But that's pretty much a side order for the time being as that continues to just roll over I don't think anyone's expecting a solution to that anytime soon. So, yeah Just bit of a pullback here bit of a dollar pickup worth keeping an eye on this morning And as we move further down here in in K-Bod keep an eye on that low scene Yes, they are yesterday evening in the US session and Scaling that back down then for those subsequent highs that were seen on the way up Would be my way of just monitoring that chart from a technical perspective Okay, elsewhere. Yeah, US equities record highs as I mentioned briefly and yesterday Here's just a quick look at the S&P 500 So just been looking at this just continued rise. Obviously we had this very momentary spook Pretty much this time last week when the markets got a bit apprehensive about the COVID global situation But ever since we hit that low last Monday, the markets just continues to trade higher And we fleshed out fresh highs going into the futures market into the close yesterday And so a couple of technical levels just be keeping an eye on here So going back from that high that we had back on the 16th The higher that we saw Towards the end of last week and that overnight high being respected and on the way up I'm just looking at this trend line as well. It's been respected on three occasions So as we pull back here a little bit of like profit-taking nothing more than that I would say and we're just finding a bit of support around the overnight APAC high Which was that previous all-time resistance point back on Thursday last week got the pivot just under there then the trend line would come in so kind of technically I'm looking at that market and nothing really too obvious to speak of right now But obviously a big day for corporate earnings, of course, and we'll talk about those Right now and so on corporate earnings side Well, actually before I go to that Let's just talk about equities in the US then finishing with a very positive footing you can see here the Nasdaq Pretty much respecting a range, but right back up there at all-time high territory in the cash market The S&P would and the down were about a quarter percent. The Nasdaq was up about one-tenth China not so good China still suffering on the lingering concerns about regulatory crackdowns really the key concern now is whether Regulators will do more and expand the crackdown to other sectors We've seen this very prevalent for technology and more recently education and actually property sector got hit as well overnight The Hangsang tech index was down another four percent overnight And that means then that it's lost about 13 percent in three days as you can see here Stated by Bloomberg The Hangsang broader index underperformed the region it was down about two percent the rest of the region was down Marginally if not trading pretty much unchanged You didn't have industrial profits coming out as well from China overnight year-in-year for June 20 percent Was there was the reading down from a previous thirty six point four percent? So a few things that China related going on But on the earning side just mentioning Tesla then Tesla had their numbers last night their Q2 2021 adjusted EPS at 145 against expectations of 98 cents revenues 11.96 billion dollars above the expected 11.3 billion They confirmed a forecast for 50% growth in deliveries over a multi-year horizon But added in some years we may grow faster Which we expect to be the case for 2021 So pretty positive on the outlook net income grew 10x year-on-year and exceeded one billion dollars 354 million was from regulatory credits and that's the first time in history that they're profitable with the exclusion of those regulatory Credits, so their shares did see a little bit of fluctuation on the upside Last night they were they did move up initially as much as three percent But actually they settling down with a gain of around one percent in aftermarket hours for for Tesla That does lead us on then we might as well cover off the other big Mega-cap tech names today is a big day as you can see from the logos apple Microsoft Alphabet this is actually general electric as well And again between those three plus Facebook and Amazon you're talking about a quarter of the entire S&P 500 from an index weighting point of view So this really is the meaningful week as far as that is concerned for for corporate earnings So definitely aftermarket today would want to be keeping an eye out for those names and looking at the tech names in particular So what can we expect from some of these well? I did issue a note you can access it on my Twitter which goes into more detail on the Amphi live community In what to expect by the numbers, but just to give you a bit of a top-level summary So for Apple and we're looking at an EPS earnings per share of a dollar and one cent Up from sixty five cents a year earlier According to estimize which basically crowd sources projections from hedge funds Academics and others so quite often uses a bit of a benchmark for what a type of whisper number might be Their average expect expectation is for a dollar sixteen for the EPS So well above the street estimate of 101 Revenues are expected to be seventy three point two six billion overall But on a segment level obviously the key one which we'll be keeping a close on is the iPhone revenue Seven point one or the iPhone revenues projected at thirty four point one nine billion They're anticipating to see around seven and eight billion respectively between iPad and iMac revenues and Sixteen point two six billion in services revenue, which is the other big now staple of their their kind of revenue generation Some reports I was reading last night. We're talking about the fact specifically with the iPhone being a kind of key revenue point of interest It could have reaped rewards of an unusually high promotional Wireless industry that we've seen from I think Verizon wireless and AT&T and some of the others During the the last quarter Watch out as well for the Apple Mac and iPads. They were popular purchases during the pandemic And as things start to reopen in America It's going to be interesting to see whether or not the company can sustain momentum in those particular products after they really saw some Some good movement in those numbers and as ever their outlook and commentary around its September quarter revenue Will be seen to hold clues potentially is what the company expects in the early days of its next smartphone launch Which will be closely watched as well. So that's Apple as far as Alphabet is concerned looking at an earnings per share of nineteen dollars twenty four Analyst expecting a fifty six point two billion second quarter revenues traffic acquisition costs are estimated at ten billion Google then it's been encircled by a lot of regulatory focus of late across the US and Europe but analysts Don't really seem to be too fast That's going to really have impeded their bottom line at this point and then Microsoft the final big one Analysts are looking very much towards their cloud empire Earnings per share then expected a dollar ninety two and revenues at forty four point two five billion Bank of America analysts has said last night that expects a two to three percent upside to Microsoft's total queue for revenue Estimates based on sustained Azure and office three six five strength So again much like with Amazon later on in the week with AWS Looking at the cloud numbers for Microsoft's going to be quite quite key for anticipating their post-market reaction So, yeah, that's all all of the earnings really so a few other points to mention then Bitcoin I think I think Bloomberg Having a bit of a stretch to say Bitcoin has tumbled Don't think it's quite tumbled. We're trading in the futures around thirty seven thousand. We did peak briefly Above the forty K mark in the futures trading around forty thousand five eighty yesterday So it's backed off the initial spike high, but putting into context. We were trading around a thirty thousand mark Just a few sessions ago And the reason for the pullback Predominantly is based on one of the reasons what shot the price higher as much as a short squeeze was talk about Amazon Entering the crypto space. I think perhaps a little bit over Over exaggerated that job advert was very much talking about the the internal Amazon crypto Ecospace and their own kind of exposure and dealings with technology in that area rather than So much explicit on timings and Bitcoin And so Amazon Have denied basically that the job posting for digital currency executive meant that it will accept the token for payments this year So they have actually come out and said that and thus it's put a bit of a short-term cap to prices It's the latest there a quick look then at The calendar for today so particularly quiet as far as The morning is concerned. So really we we start to focus in on the durable goods report coming out the US at 130 According to analysts at ING Boeing experienced a huge jump in aircraft orders in June 219 in fact versus 73 that was seen in May and And this will lift durable good orders more broadly while the ex-aircraft numbers still look good based on the fact of what we've seen as And at total evidence in the ISM report more recently Otherwise as far as the rest of us session is concerned you've got US consumer confidence For July expect to see a slight drop off from the previous one two seven spot three to a hundred and twenty four spot one You've also got Richmond Fed coming out as well at the same time And then the API all over trees due after market fixed income supply You've got a 2026 guilt auction in the UK DMO and then 61 billion dollars of a five-year no auction coming out of the US As well The earnings you can see here, but we've covered off those those mega cap tech names, which I'll be updating so if I live community I'll be sharing on Twitter as well The aftermarket reactions and the rationale behind why that happened later on tonight. So that is it I will wish you guys a good day ahead any questions at all Feel free to drop me a comment more than happy to help and I'll catch you guys tomorrow. Take care