Equities report: The earnings season is in full swing

US stock markets appear to be moving in upwards direction for the week, as relatively positive earnings releases appear to be supporting the equities market. As such, it could be that the S&P 500 and the DOW JONES 30 are moving in upwards fashion, yet the NASDAQ 100 appears to have stagnated in comparison, as heavyweight index companies appear to be providing mixed signals. We note for the remainder of the week that we are anticipating earnings reports from Ebay (#EBAY), Meta (#FB) and AT&T (#T) today, McDonalds (#MCD) and Intel (#INT) tomorrow, and Amazon (#AMZN) and Exxon Mobil (#XOM) on Friday.

Deutsche bank prepares for the worst

 Deutsche Bank (#DeutscBank) earlier today posted a 27% decline in second quarter profit, following a slump in revenue of approximately 11% from its investment banking division. In addition, the bank reported that they increased provisions for credit losses by 72% or approximately €401 million from the previous year, potentially in anticipation of a sharp rise in “bad loans” , raising concerns about the ‘health’ of Europe’s financial economy, if one of the largest banks is ramping up efforts to prepare for such a potential scenario. However, not all is bad, as despite the reduction of 27% in second quarter profit, the bank still posted a 12  consecutive quarter of profit. In addition, the provisions being made could increase consumer confidence in the bank’s abilities to withstand potential economic turmoil. Therefore, it could potentially provide support for the company’s stock price in the long run, as they could be perceived to be better prepared than their counterparts to respond in times of great financial uncertainty.

Apple (#AAPL) faces a $1bn lawsuit by UK app store developers for “excessive” charges

Apple appears to be facing a class action lawsuit by over 1,500 App developers in the UK, following allegations that its Apple store fees to developers are “excessive”. In the event that the accusers manage to win the legal battle against the tech giant, it could potentially pave the path for other developers in other countries to follow suit and as such, any ruling short of a full victory for Apple could potentially hit their bottom line in the long run. Therefore, potentially causing a great deal of damage to Apple’s profitability , as Apple claimed the App store had generated $1.1 trillion in billings and shares in 2022, despite 90% of those transactions not paying commission to Apple, it could still have a material impact on the company’s profits.

FTC vs Amazon?

According to a report by POLITCO, the FTC is gearing up to take on Amazon. In the report, POLITCO reports that the FTC is finalizing a 3-year investigation into the company, consisting of statements and interviews, including the CEO Jassy and former CEO and founder Jeff Bezos. Furthermore, the news agency states that the FTC is preparing to file its anti-trust lawsuit case in Federal Court, as early as August. Should the FTC be successful in proving that Amazon operates in an uncompetitive way and would require to be broken up, we could see the company being separated into different entities, marking an end to the behemoths reign. However, Amazon might opt to adjust its practises in order to alleviate competition concerns, as was seen in the company’s reply to the UK  FTC equivalent, the Competition Markets Authority, where Amazon has offered to change its marketplace rules in order to address CMA concerns.

تجزیه و تحلیل فنی

#DeutscBank Daily Chart

Support: 10.10 (S1), 9.51 (S2), 8.84 (S3)

Resistance: 10.65 (R1), 11.25 (R2), 11.78 (R3)

#DeutscBank appears to be moving in an upwards trajectory following the release of its earnings report today. We maintain a bullish bias for the stock and supporting our case is the RSI indicator below our 4-Hour chart which currently registers a figure above 70, implying a resilient bullish market sentiment, in addition to the upwards moving channel formed on the 7  of July. For our bullish outlook to continue, we would like to see a clear break above the 10.65 (R1) resistance level, with the next possible target for the bulls being the 11.25 (R2) resistance ceiling. On the other hand, for a bearish outlook we would like to see a clear break below the 10.10 (S1) level, with the next possible target for the bears being the 9.51 (S2) support base. Furthermore, we should note that the extreme widening of the Bollinger bands imply high market volatility and as such could lead to volatile price swings.

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