Global Stock Market Update & Analysis: July 19th

Global Market Recap: Tech Outage and Commodity Concerns Impact Stocks

The global financial markets witnessed varied movements amid concerns over a widespread tech outage and fluctuations in commodity prices. Here’s a detailed look at the recent developments across major stock indexes:

Canada

The Toronto Stock Exchange (TSX) experienced a slight decline, primarily driven by easing commodity prices. Investors closely monitored the impact of a global tech outage that disrupted operations across various businesses. This disruption added to existing market uncertainties, influencing investor sentiment throughout the trading session.

USA

Across the United States, major stock indexes trended lower as traders pivoted away from expensive mega-cap technology stocks. The tech sector, which has been a significant driver of market gains, faced selling pressure amidst broader concerns about valuation and the potential economic impact of the recent tech disruptions. These factors contributed to red figures on the boards of American exchanges.

European Shares

European markets also registered declines and were poised for weekly losses. The negative sentiment was exacerbated by concerns surrounding the tech sector and broader economic uncertainties. Investors remained cautious ahead of key economic data releases and central bank decisions, which could provide further insight into the region’s economic outlook.

Japan

In Asia, Japan’s Nikkei index fell following overnight drops on Wall Street. However, losses were limited by a rebound in semiconductor stocks, which buoyed market sentiment. The tech sector’s resilience amid broader market declines underscored its importance in regional market dynamics.

U.S. Dollar Strength

The U.S. dollar strengthened, distancing itself from a four-month low observed earlier in the week against a basket of major currencies. The dollar’s rebound reflected renewed investor confidence amidst global market uncertainties and economic data releases. The currency’s movements impacted international trade dynamics and contributed to market volatility across different asset classes.

Corporate Stock News

• Amazon.com Inc, Nike Inc, Target Corp & Walmart Inc: Retailers started early back-to-school sales to counter Amazon’s Prime Day, accelerating shipping demand.
• American Express Co.: Reported Q2 profit of $3.02B, $4.15/share, up 39%, credited to scale, high credit quality customers, and controlled expenses.
• Autoliv Inc.: Lowered full-year sales outlook after Q2 profit missed, with adjusted operating profit at $221M.
• Barclays Plc & Under Armour Inc: Mohamed A. El-Erian to leave Barclays board for Under Armour chair, highlighting his move from finance to sportswear.
• BHP Group Ltd: Hired Dominic Perrottet as U.S. liaison, marking his shift from Australian politics to corporate relations.
• Global Tech Outage: CrowdStrike product update glitch on Microsoft OS caused global disruptions across airlines, broadcasters, and banking.
• Halliburton Co.: Q2 net income rose to $709M, driven by stable demand in international markets for drilling services.
• Netflix Inc.: Added 8M+ Q2 subscribers, exceeding forecasts, but cautioned on slower advertising revenue growth.
• PPG Industries Inc.: Cut annual profit forecast after Q2 revenue miss, citing weak automotive and industrial sectors.
• Schlumberger NV: Beat Q2 profit estimates, driven by strong international drilling demand, expected margin expansion.