CBOE's Weekly Market Recap: August 1 To August 5

The last four weeks have been an incredible relief for the world’s markets.

For one, the SPDR S&P 500 ETF Trust SPY recorded four consecutive weeks of price ascension, a feat unmatched since last October. Favorable consumer price index data, the Federal Reserve’s decision to pause rate hike growth and a job report that exceeded expectations seemingly provided the perfect macroeconomic catalysts for price ascension in major indices. 

Specifically, Cboe Global Markets Inc. CBOE reports that European exchange-traded funds (ETFs) like the iShares FTSE 100 UCITS ETF ISF and iShares Core DAX UCITS ETF EXS reaped positive returns last week, with local ETFs like the iShares Russell 2000 ETF IWM following suit.

Cryptocurrencies have also experienced price ascensions, but these price rises have not been proportionate. In the last four weeks, Ethereum ETH/USD has risen nearly 100% on news of the Merge blockchain upgrade and generally bullish behavior in the markets. In comparison, Bitcoin BTC/USD has jumped 20% and Solana SOL/USD by 40% in a similar time frame.

Apple Inc. AAPL wins Chart of The Week following an incredible run-up and unusual strength relative to general market indices.

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 increased by 3.3% last week, recording its fourth consecutive week of price ascension.
  • The Invesco QQQ Trust Series 1 QQQ increased by 2.69% last week, following suit with the SPY’s overall movements.
  • The iShares Russell 2000 ETF IWM increased by 5.01% last week, the highest incline among the three exchange-traded funds recorded in this series.
  • The Cboe Volatility Index™ VIX decreased by 7.47% last week, falling back to levels unseen since April.

World Markets

  • The iShares Core MSCI Europe ETF IEUR increased by 2.52% week-on-week.
  • The iShares FTSE 100 UCITS ETF ISF increased by 1.29% week-on-week.
  • The iShares Core DAX UCITS ETF EXS increased by 1.62% week-on-week. 
  • The Lyxor CAC 40 ETF CAC increased by 1.3% week-on-week. 

Chart Of The Week: AAPL

This photo was taken from the TradingView platform

Apple shares have been on an upward trajectory since before general market indices established their upward trends. 

As seen in the chart above, AAPL has displayed six consecutive weeks of price ascension, two weeks more — and earlier — than the SPDR S&P500 ETF. Also apparent is the sharp bounce off the lows, which resulted in a rubber bandlike reaction in the opposite direction. Once compared to the SPY, this too shows strength. 

Apple — business magnate Warren Buffett’s largest investment — reported earnings per share (EPS) of $1.20 and revenue of $82.959 billion on July 28. Both figures beat estimates, much like every report before it since April 2016.

Major Cryptocurrencies

  • Bitcoin BTC/USD increased by 4.88% but has yet to break the $25,000 level.
  • Ethereum ETH/USD increased by 13.86%. Since its low on June 18, Ether has climbed a staggering 131%. News of the Merge and a third successful testnet transition from proof of work to proof of stake is likely prompting the move.
  • Solana SOL/USD increased by 10.38% and closed at a price of $44.86 per coin. 

Upcoming Earnings Releases

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

  • Walmart Inc. WMT – EPS estimate: $1.60
  • World Wrestling Entertainment Inc. WWE – EPS estimate: $0.55
  • Home Depot Inc. HD – EPS estimate: $4.93
  • Cisco Systems Inc. CSCO – EPS estimate: $0.82
  • Target Corp. TGT – EPS estimate: $0.72
  • Krispy Kreme Inc. DNUT – EPS estimate: $0.1
  • Nio Inc. NIO – EPS estimate: -$1.36
  • Foot Locker Inc. FL – EPS estimate: $0.85

Click here for more weekly insights by Cboe. 

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Featured photo by Hans Eiskonen on Unsplash

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