Stocks Mixed after Facebook fall and US/EU Trade Deal

July 26, 2018 11:48AM CDT

The overnight global equity markets were mixed with Chinese and Pacific region stocks lower and other areas showing slight gains.  The disappointing Facebook results were offset by hopes of an improvement in US/European trade relations.  After the close yesterday, Facebook announced revenue and user growth were lower than expected, and plan to decline the next two quarters.  This news made Facebook fall 20%.

The Facebook news clearly damages the potential positive leadership from the tech sector going forward and given the importance of the company, one might expect a much bigger early washout in the overall marketplace.  The S&P from the close yesterday is down online nine points and remains near the upper portion of the huge range up extension yesterday.  Anything hawkish from the ECB could allow for a chop this morning back down to 2830.  Resistance comes in at 2860 with support at 2820.

E-mini S&P 500 Sep '18 Daily Chart

E-mini S&P 500 Sep '18 Daily Chart

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