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S&P 500 Reaches June High After Companies Begin Reporting Earnings, Tesla Drops & EURUSD Rallies

S&P 500 reaches highest point since June

 The S&P 500 rose to a multi-week high on Tuesday, as markets continue to react to upcoming Q2 earnings reports.

Companies have begun reporting their quarterly earnings over the past ten days, with the likes of Bank of America reporting better than expected revenue numbers already.

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A host of other major corporations are also set to hold their earnings call over the next few weeks, with many looking towards the FAANG companies to surpass expectations.

Despite the potential for strong earnings growth, many still expect the Fed to hike rates by 75 basis points next week.

As of writing, all major U.S. indices were trading higher.

Tesla shares lower ahead of Q2 earnings call

Another company which is set to report its quarterly numbers is Tesla, which will hold its call after tomorrow’s closing bell.

The company is expected to report revenue of $17.23 billion for Q2, which is an 8% decline from a record high in Q1.

This decline is attributed to the impact of inflation on the electric vehicle company, which CEO Elon Musk has made reference to in past months.

Musk has also made it clear that the company would be trimming its workforce in order to deal with the rising price of production.

$TSLA is trading 3.33% lower as of writing.

EURUSD rallies to 2-week high

EURUSD rose to a two week high in today’s session, as traders continued to be buoyed by the potential for an ECB rate hike.

After nearly a decade of low rates, and despite calls to act earlier, ECB President Christine Lagarde is set to finally update monetary policy in this week’s meeting.

Today’s move saw the euro climb to as high as $1.0269, which is nearly 1.2% higher than Monday’s peak.

Overall, the move is the strongest gain for the Euro since July 6th and comes following last week’s fall to parity versus the dollar.

The European Central Bank will hold its monthly meeting this coming Thursday.

“You make most of your money in a bear market; you just don’t realize it at the time.”

-Shelby Cullom Davis.

Eliman Dambell

Senior Market Analyst