July 20 (Wednesday)
Latest Morning Briefing Executive Summary: The Dollar & Earnings
Although Fed officials rarely discuss the US dollar’s impact on the economy, the dollar’s recent strength does exert an impact comparable to some degree of interest-rate hiking. Ditto the Fed’s latest quantitative tightening program, QT2. Both effectively will lower the federal-funds-rate endpoint of this tightening cycle. … The dollar’s recent strength reflects massive inflows into US financial markets from overseas given the troubled economies most everywhere else. So we continue to recommend a Stay Home investment strategy for US investors. … How does the dollar’s strength affect corporate earnings? There’s no rule of thumb to go by, but with S&P 500 companies deriving about 40%-50% of their revenues and earnings from abroad, the impacts can be significant.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on July 18.
Markets
Dow Jumps 750 Points as Investors Take Hope From Earnings Reports | W
Strong Dollar Fuels Pullback in Commodity Markets | W
Central banks
Fed Officials Preparing to Lift Interest Rates by Another 0.75 Percentage Point | W
Energy
Exclusive: Russia seen restarting gas exports from Nord Stream 1 on schedule | R
Putin warns of Nord Stream 1 gas capacity cuts over equipment repairs | R
Vital Russian Gas Supplies to Europe Aren’t Expected to Restart, Says European Commission | W
Russia moves closer to cutting off gas as Gazprom declares force majeure on supplies | yahoo.com
Europe Fears a Long, Cold Winter if Russia Ends Supply of Natural Gas | W
ConocoPhillips CEO warns of oil supply shortages and price volatility | R
US
Diverging Jobs Data Raise Questions About Labor Market Health | W
China
Henry Kissinger Warns Biden Against Endless Confrontation Between US and China | B
Geopolitics & trade
Russia taking steps to annex Ukrainian territory, White House says | C
China Warns U.S. Against Nancy Pelosi Visit to Taiwan | W
Putin’s Trip to Tehran Aims to Boost Ties With Iran, Turkey | W
Putin forges ties with Iran’s supreme leader in Tehran talks | R
Industries & companies
Cruise Lines: Shares of cruise lines jump after CDC ends Covid-19 program | C
Financials: CFPB to Push Banks to Cover More Payment-Services Scams | W
Home Builders: Home Building Slipped in June for Second Straight Month | W
Media: Netflix soothes Wall Street concerns with customer growth forecast | R
Tech: Google will once again test augmented reality glasses in public | C
Tech: Senate Moves Forward With $52 Billion in Semiconductor Funding for Chipmakers | B
Corporate finance
Google and Chevron invest in nuclear fusion startup TAE Technologies | C
Twitter-Musk Trial Set for October in Lawsuit Over Stalled $44 Billion Takeover | W
Climate
Heatwave: UK shatters record for its hottest day ever | C
Greek wildfire rages near Athens; homes, hospital evacuated | R
Biden to Tackle Climate Change During Visit to Former Coal Power Plant | W
Crypto
Cryptocurrency flowing into “mixers” hits an all-time high. Wanna guess why? | Ars Technica
Beyond markets
Covid: CDC approves Novavax vaccine for adults, shots available in coming weeks | C
As BA.5 Spreads, How Long Will a Prior Covid-19 Infection Protect You? | W
