MASSIVE BLOODBATH IN THE IT OUTSOURCING SECTOR.
Accenture reported earnings this morning and cut its full-year revenue forecast. Its quarterly bookings fell 2% and the stock crashed 18%. Accenture is the largest IT services company in the world, so when it reports weak demand, every other company in the sector falls with it. Cognizant fell nearly -8%. Wipro fell nearly -8%. Capgemini fell -8.4% to its lowest price in a year. IBM fell -4%. EPAM dropped to near a 52-week low. Two things are driving the selloff. Companies are spending less on IT consulting as the economy slows, and the market now believes AI is starting to do the work these companies used to charge billions for. Both pressures hit the same business model at the same time. This is a direct problem for India. Indian IT has been one of the only sectors holding up the Nifty. TCS, Infosys, HCLTech, and Wipro have been carrying the index. These companies run on the same model as Accenture and earn most of their revenue from US and European clients. Accenture's results are treated as a preview of what is coming for TCS and Infosys. Their US-listed shares already fell 3 to 5% tonight. No surprise Indian markets are getting hit... Source: Bull Theory
IRAN SUSPENDS U.S. PEACE TALKS LESS THAN 24 HOURS AFTER SIGNING DEAL
Iran has reportedly suspended the entire 60-day negotiation process with the U.S., citing Israeli strikes on Lebanon, according to Fars and Al-Mayadeen. Vice President JD Vance has reportedly postponed his planned trip to Switzerland, where U.S.-Iran talks were set to begin Friday, per Axios. Both delegations were preparing to depart before the talks were called off. Note that is barely moving Source: Coin Bureau
PRECIOUS METALS ARE CRASHING
Over $1.74 TRILLION has been wiped out from precious metals in the last 24 HOURS. Gold is down -4.75%, wiping out $1.41 trillion from its market cap. Silver is down -9%, wiping out $327 billion from its market cap. Source: Bull Theory
Reduce Risk Now in Tech Stocks, warns UBS Trade Desk
Do you agree ??? Source: Barchart
What a turnaround for Fed rates expectations (as implied by Futures). From projecting 6 cuts in September to 2 hikes now
Note that it didn't prevent equities to surge... Source: zerohedge, Bloomberg
The dollar index $DXY bounced off a major long-term weekly trend line and is now pressing into key short-term resistance levels.
The setup has echoes of the 2020/21 consolidation, when an extended period of range trading eventually gave way to a powerful breakout higher. Importantly, the dollar is also trading comfortably above its 50-week moving average, reinforcing the improving medium-term trend. A decisive move through the 100.5 area would strengthen the breakout case. After spending more than a year coiling inside the current range, a break higher risks creating a vacuum move as traders scramble to adjust to a regime shift in the dollar. Source: TME LSEG
While financial markets have priced in the peace deal, shipping markets have not... with Freight rates still 3x pre-war levels...
Source: zerohedge
Retail investors are piling into SpaceX at an UNPRECEDENTED pace:
The ARK Innovation ETF, $ARKK, recorded ~$7 billion in inflows in June, the largest in nearly a year, with the surge coinciding precisely with the day of the SpaceX IPO. Over the first 3 trading sessions following its IPO, retail investors purchased a net $369.8 million of SpaceX, $SPCX, according to Vanda Research. By comparison, retail investors purchased just $88.2 million of Nvidia, $NVDA, over the same time. SpaceX's 3-day retail purchases roughly matched the COMBINED total of Nvidia, Alphabet, Amazon, Microsoft, Meta, the S&P 500 ETF, $SPY, and the Nasdaq 100 ETF, $QQQ. The retail mania is unlike anything seen before. Source: Global Markets Investor, Bloomberg
