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Daily Market Analysis 26.07.2022: US100

Instrument: US100

Technical Analysis

Bullish Preference:  
Buy position is envisaged if price trades above 12348.31 with take profit at  12386.48
Bearish Preference: 
Sell position is envisaged if price trades  below 12264.11 with take profit at 12245.09
Fundamentals:
3:00 pm   USD:  CB Consumer Confidence  

Comment: 
Several firms that missed Q2 revenue estimates have recently blamed the strong U.S. dollar. Goldman Sachs’ calculation shows that a 10% appreciation in the trade-weighted dollar creates a 2-3% impact on EPS. David Kostin, Goldman Sachs Chief U.S. Equity Strategist, sees many more companies reporting weaker-than-expected Q2 revenue numbers due to the strong greenback. However, there is a huge difference in the impact produced by the strong dollar when looking at different sectors. “Two sectors—Info Tech (59%) and Materials (50%)—derive more than half of their revenues outside the United States. Due in large part to the semiconductor industry, Info-Tech companies are particularly exposed to Greater China, with 27% of revenues derived from the Asia Pacific region broadly and 15% explicitly attributed to Greater China. At the other end of the distribution, the median Financials, Utilities, and Real Estate stocks derive less than 10% of revenues from outside of the United States,” Kostin added. At the index level, Nasdaq 100 is by far the one with the highest exposure (47%), compared with 29% for the S&P 500 and only 20% for the Russell 2000.

Analysis: SCRUM Team

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