CBOE's Weekly Market Recap: August 15 To August 19

After four weeks of bullish action, it appears the market may be reaching the height of its rally.

Experts from BlackRock Inc. BLK and JPMorgan Chase & Co. JPM have been warning the public that the rally experienced in the last month is bound to be met with resistance soon, a premonition they attributed to worsening global economic conditions.

SPDR S&P 500 ETF Trust SPY has, perhaps, begun validating these beliefs, declining 1.16% last week and starting off Monday by gapping down more than 1%. Cboe Global Markets Inc. CBOE reports that European exchange-traded funds (ETFs) like the iShares Core MSCI Europe ETF IEUR, iShares Core DAX UCITS ETF EXS and Lyxor CAC 40 ETF CAC have all experienced price drops last week, too. 

Cryptocurrency leaders Bitcoin BTC/USD and Ethereum ETH/USD have mirrored the equities market, each declining more than 10% last week. Exemplifying the market’s downturn is Zoom Video Communications Inc. ZM, this week’s chart of the week following a disappointing earnings report. 

Finally, Cboe notes upcoming earnings that may lift investors’ eyebrows in the week to follow. 

Quick Bites

Exchange-Traded Funds 

• The SPDR S&P 500 ETF decreased by 1.16% last week, hinting at a potential top following a strong rally throughout June, July and the first half of August.
• The Invesco QQQ Trust Series 1 QQQ increased by 2.28% last week, following suit with the SPY’s overall movements.
• The iShares Russell 2000 ETF IWM rose by 2.85% last week, the highest increase among the three exchange-traded funds recorded in this series.
• The Cboe Volatility Index™ VIX decreased by 0.15% last week. 

World Markets

• The iShares Core MSCI Europe ETF IEUR decreased by 3.69% week-on-week.
• The iShares FTSE 100 UCITS ETF ISF increased by 0.81% week-on-week, showing unusual strength.
• The iShares Core DAX UCITS ETF EXS decreased by 1.86% week-on-week. 
• The Lyxor CAC 40 ETF CAC decreased by 0.98 % week-on-week. 

Chart Of The Week: ZM

This photo was taken from the TradingView platform

Shares of telecommunications company Zoom Video Communications tumbled following an earnings report that surprised Wall Street analysts. 

On Aug. 22, the company reported an earnings per share (EPS) profit of $1.05, a figure 10% greater than consensus estimates. The positive EPS figure, however, was eclipsed by the company’s revenue miss, which saw it record $1.099 billion instead of the $1.116 billion estimate. 

The small deviation — amounting to 1.45% — was enough to drive the company’s stock from $97.44 a share to $84.56 on the next day’s open, a 13% decline overnight. 

Since its height in October 2020, the company’s stock has fallen a whopping 86%. 

Major Cryptocurrencies

• Bitcoin decreased by 11.48% last week following weeks of upward momentum. The cryptocurrency remains in a downtrend on the weekly and daily charts.
• Ethereum decreased by 16.49% last week, completely erasing the week prior’s upward movement.
• Solana decreased by 18.7% and closed at a price of $36.47 per coin. 

Upcoming Earnings Releases

A number of high-end companies report earnings in the following week, including: 

• Xpeng Inc. XPEV  – EPS estimate: -$2.61
• Mawson Infrastructure Group MIGI – EPS: $0.23
• Urban Outfitters Inc. URBN  – EPS estimate: $0.70
• Nvidia Corp. NVDA – EPS estimate: $0.49
• Salesforce Inc. CRM – EPS estimate: $1.02
• Snowflake Inc. SNOW – EPS estimate: -$0.01
• Royal Bank of Canada RY  – EPS estimate: $1.97
• Toronto-Dominion Bank TD – EPS estimate: $2.04
• Peloton Interactive Inc. PTON – EPS estimate: -$0.72
• Dell Technologies Inc. DELL – EPS estimate: $1.64

Click here for more weekly insights by Cboe. 

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Featured photo by Kelly Sikkema on Unsplash