Negative FCF Micron weighs on tech stocks, Nasdaq down more than 1%. Micron Technology shares fell nearly 4%, after projecting negative Free Cash Flow (FCF) for the 2Q22 period, due to weak demand for chips for PC and Video Games. Micron’s performance warning triggered selling pressure on shares of Chipmaker issuers, dragging other technology stocks, ahead of the release of a number of economic data. Headline US July Inflation YoY is projected to slope to 8.7% (Vs. Jun. 9.1%). However, Core Inflation is projected to soar again beyond 6% (vs. Jun. 5.9%), in line with the volatility of the USD and the prices of a number of global commodities. On a monthly basis, July’s DXY rose to 105.9 compared to June’s 104.7.

Survey: Trade Balance Surplus Declines. JCI closed above the psychological 7,100 level, with the Energy Sector strengthening up to 2.5%. The absence of the August FOMC Meeting has made investors focus on the Earning Season and positive domestic economic data. Meanwhile, Rupiah has also consistently strengthened below the psychological level of IDR15,000/USD in August. Meanwhile, a Bloomberg survey projects Indonesia’s July Trade Balance surplus to shrink to +USD3.6 billion (Vs. Jun. +USD5.1 billion) as global commodity prices sag. The survey also projects July exports YoY to grow +37.5% (Vs. Jun. +40.7%), but July imports YoY is projected to grow +26.3% (Vs. Jun. 21.9%). NHKSI Research expects JCI to Consolidate/Pullback with Support: 7,015-7,000 / 6,930-6,895 and Resistance: 7,145 / 7,175.

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