DGAP-News: 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. (NYSE: BLK) and JPMorgan Chase & Co. (NYSE: 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 (NYSEARCA: 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. (BATS: CBOE) reports that European exchange-traded funds (ETFs) like the iShares Core MSCI Europe ETF (NYSEARCA: IEUR), iShares Core Dax UCITS ETF (BIT: EXS1) and Lyxor CAC 40 ETF (EPA: CAC) have all experienced price drops last week, too.

Cryptocurrency leaders Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have mirrored the equities market, each declining more than 10% last week. Exemplifying the markets downturn is Zoom Video Communications Inc. (NASDAQ: ZM), this weeks chart of the week following a disappointing earnings report.

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

• 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 (NASDAQ: QQQ) increased by 2.28% last week, following suit with the SPYs overall movements.

• The iShares Russell 2000 ETF (NASDAQ: IWM) rose by 2.85% last week, the highest increase among the three exchange-traded funds recorded in this series.

• The Cboe Volatility Index (INDEXCBOE: VIX) decreased by 0.15% last week.

• The iShares Core MSCI Europe ETF (NYSEARCA: IEUR) decreased by 3.69% week-on-week.

• The iShares FTSE 100 UCITS ETF (LSE: ISF) increased by 0.81% week-on-week, showing unusual strength.

• The iShares Core DAX UCITS ETF (BIT: EXS1) decreased by 1.86% week-on-week.

• The Lyxor CAC 40 ETF (EPA: CAC) decreased by 0.98 % week-on-week.

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 companys 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 companys stock from $97.44 a share to $84.56 on the next days open, a 13% decline overnight.

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

• 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 priors upward movement.

• Solana decreased by 18.7% and closed at a price of $36.47 per coin.

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

• Xpeng Inc. (NYSE: XPEV) EPS estimate: -$2.61

• Mawson Infrastructure Group (NASDAQ: MIGI) EPS: $0.23

• Urban Outfitters Inc. (NASDAQ: URBN) EPS estimate: $0.70

• Nvidia Corp. (NASDAQ: NVDA) EPS estimate: $0.49

• Salesforce Inc. (NYSE: CRM) EPS estimate: $1.02

• Snowflake Inc. (NYSE: SNOW) EPS estimate: -$0.01

• Royal Bank of Canada (TSE: RY) EPS estimate: $1.97

• Toronto-Dominion Bank (NYSE: TD) EPS estimate: $2.04

• Peloton Interactive Inc. (NASDAQ: PTON) EPS estimate: -$0.72

• Dell Technologies Inc. (NYSE: DELL) EPS estimate: $1.64

Click here for more weekly insights by Cboe.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Michele Ormont

mormont@cboe.com

https://www.cboe.com/