With the weekend behind us, we wake up to an even more uncertain global macro situation than what we had left behind last week. I am grappling with the following major thoughts as I have my morning cup of English Breakfast tea.
The Greece situation is still very tenuous. The Athens exchange will remain lousy today like it has for the last month on renewed chatter that there is a revolt of sorts within the Syriza party of Greek Prime Minister Alexis Tsipras to go after the Greek central bank's reserves in a bid to force the return to the drachma.
The Chinese markets are under severe pressure due to a combination of their own weakening economy, profit-taking, and very real fears about the foolishness of the U.S. Federal Reserve actually raising rates in the face of global turmoil and slowing growth. The Shanghai Comp was hit for an 8.5% loss, the worst one-day decline in more than years.
Google (GOOGL) has given back about half of its spectacular post-earnings gains in a span of five days after the initial super-pop and looks to be headed even lower going forward.
Amazon (AMZN) did not even manage to hang on to its gains for even one day. This past Friday, AMZN's stock at one point was up $100 a share, but by the end of the day more than half those gains were gone and the shares closed up a "mere" $47.24. Not a small amount by any means, but not boding well going into another heavy earnings week in a few hours.
Sohu.com (SOHU), one of the first Chinese companies listed on our exchanges, reported financials for its second quarter. Sohu posted revenues of $494 million and a loss of 71 cents per American depositary share. The Street was expecting revenues of $481 million and a loss of 80 cents per ADS.
Changyou.com (CYOU), another Chinese company listed on our shores, reported an outstanding set of numbers. The company had revenues of $201.2 million and earnings of 95 cents per ADS. The Street had estimated revenues of $190 million and earnings of 66 cents per ADS.
Will this help the Chinese companies that trade on our exchanges? Well, if stellar reports like the above two don't help, what will?
It's going to be another action-packed and fun-filled week for sure.
Hopefully, all of you got plenty of rest over the weekend.