Forecasts and signals from trader Peters
Nvidia's revenue in the second quarter was higher than expected
The figure was $6.51 billion, and analysts believed that it would reach $6.33 billionNvidia, the largest developer of graphics chips, reported revenue growth to $6.51 billion in the second quarter. The company exceeded analysts ' expectations, according to Bloomberg.In the second quarter of fiscal year 2022 (which does not coincide with the calendar year), Nvidia's revenue increased by 68% compared to the same period last year — from $3.87 billion to $6.51 billion. At the same time, analysts predicted an increase in the indicator to $6.33 billion.Nvidia's net profit increased by 92% year-on-year — from $1.37 billion to $2.62 billion. Accordingly, the earnings per share indicator also increased-by 89%, from $0.55 to $1.04. At the same time, the consensus forecast of analysts assumed an indicator at the level of $1.01.About half (47%) of Nvidia's revenue came from the Gaming segment, which develops graphics chips for home computers. Year-on-year, the indicator increased by 85% to a record $3.06 billion. Analysts assumed that the revenue from the segment would be $2.96 billion.In the second place (36%) by the share of revenue is the Data Center segment, which develops professional solutions for data centers. Compared to last year, revenue from it increased by 35% to a record $2.37 billion. This also exceeded the expectations of analysts, who believed that the indicator would be at the level of $2.28 billion.The largest growth year-on-year (+156%) was shown by the Professional Visualization segment, which ranks third (8%) in terms of revenue in the company. This department of Nvidia is engaged in the creation of professional graphics chips for creating any visual content. Revenue from the segment amounted to $519 million.Finally, the Automotive segment, which develops on-board computers and software for cars, showed an increase of 37% year-on-year. In the second quarter, revenue from it amounted to $152 million (2.3% of the total).Trading before the publication of the report closed at the Nvidia share price of $190.4 (-2.15% compared to the opening level). After that, the company's securities grew on the premarket, and by 12:40 on August 19 they reached $192.8 (+1.3% to the closing level).
Oil prices fell amid a decline in US inventories
The price of a barrel of Brent fell by 3.2%, and WTI - by 3.7%The US Energy Information Administration (EIA) has published official data on the volume of oil reserves in the country. Against this background, prices for the main brands of fuel fell, according to the auction data.As of 13: 50 on August 19, GMT, the cost of a barrel of Brent for delivery in October was $66.02. Compared to the closing level of trading the day before ($68.23), the price fell by 3.24%. At the same time, at the moment, the cost of a barrel reached $65.91.The price of the WTI brand also fell. At the time of writing, a barrel for September delivery was trading at $62.8. This is 3.7% lower than at the close of the previous day — then a barrel of WTI was worth $65.46.On the evening of August 18, the EIA reported a decrease in crude oil reserves in the United States to a local minimum. As of August 13, there were 435.5 million barrels of fuel in the country, which is 3.2 million barrels less than last week. There was less stored oil only at the end of January 2020.The pace of inventory reduction exceeded analysts' expectations — for example, the American Petroleum Institute assumed that the indicator would decrease by 1.06 million barrels.Gasoline stocks in the United States increased by 700 thousand barrels during the week, and distillates fell by almost 2.7 million barrels. Analysts predicted that gasoline stocks will grow by 2.3 million barrels, and distillates will fall by 700 thousand barrels.Reuters attributes the decline in oil prices for the fifth day in a row to growing concerns about COVID-19. Several countries have again begun to impose restrictions to combat the spread of the disease, and the number of passengers on flights has decreased.Prices were also affected by a decrease in fuel demand in China, where the number of COVID-19 cases increased in July.
The ETH/USD exchange rate from August 9 to 15, 2021
The Ethereum hard fork "London" was launched on August 5. It is expected that this update will make ether (ETH) a deflationary asset, since a part of the coins is burned with each transaction. Etherchain data shows that approximately 2.6 ethers are burned every minute for 24 hours. Our traditional analysis of ETH/USD will show how this will affect the exchange rate of the second cryptocurrency in the world.The price of ether soared above the upper resistance of $2,914. 63 and by the end of last week was $3,013. 63, which is 17.91% higher than at the close of the previous week.At the same time, the 20-week exponential moving average (EMA) began to turn up, and the relative strength index (RSI) moved into a positive zone, which indicates that everything is under the control of the "bulls". However, the "bears" are trying to return the price below the breakout level and trap aggressive "bulls", according to the technical analysis of ETH/USD. If they succeed, the ETH/USD rate may fall to the 20-week EMA.A strong rebound from the 20-week EMA suggests that the bulls are accumulating strength on declines. Then, buyers can make another attempt to push the price above $2,914. 63 to the resistance zone of $3,192. 99. If successful, the ETH/USD rate may rise to $4,000.In the opposite case, if the "bears" take the price below the 20-week EMA, the decline may reach critical support at the level of $1,699.54.The price of ether soared above $3,000, which drove the RSI deep into the overbought zone. This means that in the short term, the rally was overheated.Profit-taking by "bulls" and aggressive sales of "bears" returned the price below $3,000, which is a negative sign. Now the ETH/USD rate may fall to the 20-day EMA.A strong rebound from the 20-day EMA will mean that traders will continue to buy on declines. Then they will try to push the price above the upper resistance again and resume the uptrend.On the other hand, a break down of the 20-day EMA will indicate a weakening of the "bullish" momentum. In this case, the ETH/USD exchange rate will remain in the range from $1,700 to $3,000 for at least a few more days.What will be the ETH/USD exchange rate this weekEther broke above the psychological resistance at the level of $3,000, but the "bulls" have not yet been able to strengthen. This indicates a shortage of buyers at higher levels. If the price bounces off the 20-day EMA, the bulls will again try to push the pair above $3,000 and start a new uptrend.Conversely, a break below the 20-day EMA will indicate a weakening of the "bullish" momentum. This can lead to a drop to the 50-day simple moving average.
China may start injecting liquidity into the economy
China may start pouring liquidity into the economy to maintain growth in the second half of the year, and this could have a positive effect on Chinese stocks.Top leaders of China at the Politburo meeting announced targeted support for the economy, as risks to growth increase.China's Manufacturing PMI was released yesterday, reflecting signs of a slowdown in economic activity. China's production grew at the slowest pace in 16 months.The new coronavirus outbreak is of great concern for continued growth in China's economic activity. China is facing the Delta option and the government is trying to stem the spread by imposing restrictions that could slow the economy down.Given the already existing factors of slowing economic activity and the government's announcement of support, it is likely that the Chinese government will have to increase its bond issuance to support the economy. The increase in bond issuance will force the Central Bank of China to ease monetary policy and increase liquidity in order to control the rise in bond yields.But how much will the People's Bank of China increase liquidity, and how will it help investors? If we take into account the past statements of the Central Bank of China that monetary policy will remain "flexible", then huge injections can not be expected. The People's Bank of China will strive to control excess liquidity in order to avoid rising inflation, although even here the Central Bank of China has somewhere to scatter, since China does not have strong problems with rising prices.The People's Bank of China will continue to soften monetary policy in the old footsteps, through reducing the collateral for banks' reserves. But it is also possible that if the economy needs more liquidity, then there is room for lower interest rates due to low inflation in the country.The increase in cash liquidity is likely to help the sagging Chinese companies after the regulatory crackdown to find support and restore investor interest.