Market Wrap

Morning Wrap: US stocks fade, Apple to slow hiring, ASX set to fall

Tue 19 Jul 22, 8:33am (AEST)

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ASX Futures (SPI 200) imply the ASX 200 will open 21 points lower, down -0.32%.

Major US benchmarks gave back early gains to finish lower, Apple plans to slow hiring and spending growth, Goldman Sachs beat earnings expectations and China is weighing a grace period for homebuyers amid a mortgage boycott.

Let’s dive in.

Overnight summary

Tue 19 Jul 22, 8:33am (AEST)

Name Value Chg %
Major Indices
S&P 500 3,831 -0.84%
Dow Jones 31,073 -0.69%
NASDAQ Comp 11,360 -0.81%
Russell 2000 1,738 -0.34%
Country Indices
Canada 18,596 +1.09%
China 3,278 +1.55%
Germany 12,960 +0.74%
Hong Kong 20,846 +2.70%
India 54,521 +1.41%
Japan 26,788 +0.54%
United Kingdom 7,223 +0.90%
Name Value Chg %
Commodities (USD)
Gold 1,707.70 -0.15%
Iron Ore 106.69 -
Copper 3.314 -0.96%
WTI Oil 101.88 -0.70%
AUD/USD 0.6811 +0.01%
Bitcoin (AUD) 31,798 +2.46%
Ethereum (AUD) 2,184 +8.77%
US 10 Yr T-bond 2.96 +1.02%
VIX 25 +4.42%


US stocks opened higher thanks to better-than-expected earnings from Goldman Sachs and Bank of America. You could almost feel risk appetite coming back, with Bitcoin briefly rallying 9.5% to 1-month high of US$22,777.

A Bloomberg report about Apple's plans to slow hiring and spending growth was the most likely reason as to why US stocks started to fade in afternoon trade.

  • 3 out of 11 US sectors advanced

  • Energy firmly in the lead as oil prices bounced back

  • Materials and Discretionary also eked out some gains

  • Healthcare, Utilities, Real Estate and Tech underperformed

  • 47% of US stocks declined

  • 74% of US stocks trade below their 200-day moving average (74% on Monday, 74% a week ago) 


  • Coinbase (+9.1%) shares rallied after DNB Asset Management, one of Europe’s largest asset managers, bought shares in the cryptocurrency trading platform

  • Delta Air Lines (+3.5%, session high: 6.3%) is buying 100 Boeing 737 Max 10 planes, it’s first major order for new aircraft from US manufacturers in more than a decade

  • Goldman Sachs (+2.5%, session high: 5.9%) second quarter profit fell -48% to US$2.79bn thanks to industry-wide declines in investment banking activity such as IPOs and M&A. Still, the bank’s earnings came in ahead of Wall Street expectations

  • Bank of America (+0.03%, session high: 3.5%) second quarter earnings were slightly ahead of analyst expectations. Profits fell -32% to US$6.25bn as the bank set aside US$523m for credit losses

    • “Solid client activity across our businesses, coupled with higher interest rates, drove strong net interest income growth and allowed us to perform well in a weakened capital markets environment,” said CEO Brian Moynihan 

  • Apple (-2.1%) plans to slow hiring and spending for some teams in 2023, according to Bloomberg. There are no plans to back-fill roles or add new staff in certain cases


US corporate earnings we’re watching this week:

  • Tuesday: IBM, Johnson & Johnson, Hasbro

  • Wednesday: Netflix, Nasdaq

  • Thursday: Tesla, AT&T, American Airlines, Domino’s Pizza

  • Friday: Snapchat, Verizon, American Express, Twitter, Verizon 


  • New Zealand inflation was 7.3% year-on-year in the June quarter, a 32-year high

    • Economists expected a reading of 7.1%

    • Housing and household utilities were the top contributors, followed by fuel prices 


  • Iron ore rebounded from an 8-month low of US$96 last week, according to Fastmarkets. Chinese regulators are weighing a grace period for angry homebuyers who are boycotting their mortgage repayments on delayed property projects

    • “The rapid escalation in mortgage repayment refusals underscores the importance of policy support to revive housing buyers’ confidence and stabilise the housing price,” J.P.Morgan analysts said in a note, Reuters reported 

  • Oil prices could not stay below US$100 as investors refocus on the tight supply side

  • Gold is still trying to stabilise around its new 16-month low. Easing Fed rate hike expectations and a slight pullback for the US dollar is beginning to see some positive flow


US Sectors

Tuesday, 19 July 2022

Sector Chg %
Communication Services -1.09%
Consumer Discretionary +0.22%
Consumer Staples -0.99%
Energy +1.96%
Financials -0.53%
Health Care -2.15%
Sector Chg %
Industrials -0.60%
Information Technology -1.03%
Materials +0.22%
Real Estate -1.08%
Utilities -1.40%

Industry ETFs

Tuesday, 19 July 2022

Description Last Chg %
Aluminum 49.1252 +3.39%
Copper Miners 26.91 +3.42%
Gold 159.01 +0.09%
Lithium & Battery Tech 71.11 +0.51%
Nickel 26.5386 +3.36%
Strategic Metals 80.66 +2.02%
Steel 47.54 +1.62%
Silver 17.19 +0.17%
Uranium 18.8 +1.81%
Aerospace & Defense 96.94 -1.23%
Global Jets 17.07 +0.76%
Biotechnology 123.25 -2.22%
Cannabis 16.68 +1.92%
Description Last Chg %
Bitcoin 13.1 +2.06%
CleanTech 13.2 +3.33%
Hydrogen 11.87 +7.41%
Solar 69.71 +2.38%
Cloud Computing 16.17 +0.68%
Cybersecurity 25.54 +0.31%
E-commerce 16.6 +1.20%
Electric Vehicles 21.84 +0.23%
FinTech 21.99 +1.09%
Robotics & AI 20.52 +0.24%
Semiconductor 369.35 -0.32%
Sports Betting/Gaming 14.17 +1.34%
Video Games/eSports 47.17 +1.06%

ASX Sectors to watch

Most ETFs we track (above) were green but like the rest of the market, closed well below session highs. Notable movers include:

  • Rare Earth/Strategic Metals +2% (session high: +4.1%)

  • Uranium +1.8% (session high: +3.8%)

  • Steel +1.6% (session high: 3.5%)

  • Fintech +1.1% (session high: 3.9%)

  • Jets +0.76% (session high +3.5%)

Wall Street is hand-balling us a weak finish and that's been reflected in the -0.32% from SPI futures.

#1 Energy

"Crude prices are back where they belong, over the US$100 a barrel level, after President Biden’s trip to the Mideast did not yield any oil commitments by the Saudis," said Oanda senior market analyst, Ed Moya.​

"The oil market will remain tight as the latest earnings updates reinforced how strong the US economy remains. The short-term crude demand outlook should stabilize here," he added.

Local names like Woodside (ASX: WDS) and Beach Energy (ASX: BPT) already started to move on Monday, up 2.2% and 3.3% respectively. Eyes on whether or not this bounce back can continue.

#2 Hydrogen

The Global X Hydrogen ETF topped our ETF list, up an outsized 7.4%.

The ETF invests in companies involved in hydrogen production, hydrogen fuel cells and other technologies related to using hydrogen as an energy source. It's listed on the Nasdaq, but a useful indicator for hydrogen sector sentiment and performance.

It might also explain why local hydrogen names like Pure Hydrogen (ASX: PH2), Frontier Energy (ASX: FHE) and Hazer (ASX: HZR) all rallied more than 8% on Monday.

The ETFs top 4 holdings (~42% of net assets) rallied strongly overnight (in order of weighting).

  1. Nel Asa (+12.6%) received its largest ever purchase order from an undisclosed US customer for 200 MW of alkaline electrolyser equipment

  2. Bloom Energy (+4.7%)

  3. Plug Power (+6.2%)

  4. Ballard Power Systems (+9%)

2022-07-19 08 21 48-Window
Global X Hydrogen ETF (Source: TradingView, Annotations by Market Index)

#3 Copper

Copper is finally having a green day after a -30% correction from June highs.

Copper prices rose 3.5% in overnight trade to US$3.35/lb.

Local copper heavyweights Oz Minerals (ASX: OZL) and Sandfire (ASX: SFR) both bounced more than 5% on Monday.

Today's events

ASX corporate actions occurring today:

  • Ex-dividend: None

  • Dividends paid: None 

  • Listing: None


Other things of interest (AEST): 

  • RBA Meeting Minutes at 11:30 am

  • UK Unemployment Rate (May) at 4:00 pm

  • US Building Permits and Housing Starts (June) at 10:30 pm


Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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