Shares of the image-sharing company Pinterest (NYSE: PINS) bounced more than 20% in after-hours trading on Monday despite the company releasing weaker-than-expected second-quarter earnings and revenue. The stock jumped after the user growth remained flat compared to the March quarter at 433 million global monthly active users. However, the Pinterest stock is down more than 42% this year.
Earnings per share: $0.11 vs. $0.18 expected
Revenue: $666 million vs. $667 million expected
“We accelerated our investment in shopping and e-commerce this quarter, and I am thrilled by the dedication of our leaders and employees to continue to build a positive place on the Internet.” - Pinterest CEO Bill Ready said.
US futures trade lower on Tuesday morning driven by the rising tensions between China and the US ahead of US House Speaker Nancy Pelosi’s visit to Taiwan. The Chinese Foreign Ministry spokesperson warned the US on August 2, saying, "China and US through different channels have maintained close communication. We've repeatedly expressed our strong opposition to the potential visit of Speaker Nancy Pelosi to Taiwan & that it's a sensitive issue & how dangerous it could be."
Crude oil futures remain under pressure following the previous session's sell-off. The strong bearish sentiment is fueled by weak manufacturing data from China and the recession fears. Moving ahead, the focus shifted to the outcome of an OPEC+ meeting on Wednesday.
In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies price regain the upside momentum against the Euro and British pound. Moving ahead to the North American session, the USD traders will now be focused on the JOLTs job openings data which is set to be released at 14.00 GMT.
The safe-haven metal hits the fresh 4-week high of $1780 on Tuesday morning supported by the weaker US dollar and escalating US-China tension over Taiwan. Meanwhile, the metal slightly retreats from the daily highs. At the time of writing, the gold price trades below $1770.
On the data front, Australia’s Reserve Bank has lifted its key interest rate for a 4th straight month. The central bank raises interest rates by half a percentage point, up to 1.85% at Tuesday's board meeting.
"The increase in interest rates over recent months has been required to bring inflation back to target and to create a more sustainable balance of demand and supply in the Australian economy," - RBA governor Philip Lowe said.
Worldwide, more than 577 million people have been confirmed infected and more than 6.4 million have died. The United States has confirmed over 91 million cases and has had more than 1.02 million deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: The currency pair needs to stay above 1.0180; otherwise. 1.0150/30 may be visible soon. On the upper side, 1.0300 is the key resistance zones to watch, if the pair breaks and close above this area then the next resistance area to watch is around 1.0350/60.
The important levels to watch for today: Support- 1.0200 and 1.0180 Resistance- 1.0270 and 1.0300.
GOLD: For today, $1785 remains the key resistance to watch. On the downside, rejection and pullback from the $1782/85 resistance allow for a dip towards $1765, with $1758 and $1750 forming additional downside targets.
The important levels to watch for today: Support- 1758 and 1750 Resistance- 1775 and 1782.
Quote of the day - “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!” – Jesse Livermore.