Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Shares of e-commerce giant Amazon.com (NASDAQ: AMZN) surged more than 14% in extended trading on Thursday after the company reported upbeat fourth-quarter earnings results. The Company reported $27.75 net Earnings Per Share (EPS), compared to $14.09 EPS one year ago and the revenue for the last quarter came slightly below the estimates.

Meanwhile, the company announced the increase in the price of its PRIME membership for the first time since 2018. The company is raising the price of its annual Prime subscriptions from $119 to $139 per year in the United States and the price of a monthly subscription will also increase from $12.99 to $14.99.

“As expected over the holidays, we saw higher costs driven by labour supply shortages and inflationary pressures, and these issues persisted in the first quarter due to Omicron,” Amazon CEO, Andy Jassy said.

EQUITIES

US futures remain under pressure ahead of the release of US NFP data after the big ADP disappointment on Wednesday. The ADP data showed that the non-farm private sector lost 301,000 jobs in January.

OIL

Crude oil futures extend the rally supported by the geopolitical tensions and falling stockpiles. US crude oil futures climbed above $90 on Friday for the first time since 2014 while Brent crude futures trade steady above $91.

CURRENCIES

In the currency market, the Euro hit a fresh weekly high of 1.1470 on Friday against the US dollar following the ECB President Christine Lagarde’s hawkish comments, which raised expectations of faster than expected monetary tightening. The US dollar index plunged to near the psychological level of 95 despite the release of better-than-expected US weekly jobless claims and ISM services PMI numbers.

GOLD

The precious metal inched a little higher on Friday. However, today could see increased volatility spikes after the release of the US employment report. At the time of writing, the metal trades near the weekly highs.

Economic Outlook

On the data front, the US ISM services index fell from 62.3 to 59.9, slightly better than the consensus estimate of 59.5. On the other hand, the US unemployment claims from the past week dropped to 238K against the expected 245K.

Moving ahead today, the important events to watch:

Eurozone – Retail Sales: GMT – 10.00

US – Employment report: GMT – 13.30

Coronavirus update:

Worldwide, more than 380 million people have been confirmed infected and more than 5.69 million have died. The United States has confirmed over 75 million cases and has had more than 885,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the resistance for the pair is above 1.1520. On the other side, the immediate support is near 1.1430 and any break will drag the pair to 1.1430 and 1.1380 levels.

The important levels to watch for today: Support- 1.1430 and 1.1380 Resistance- 1.1480 and 1.1520.

GOLD: The precious metal trades steady above $1800. If the bullish momentum continues then the next upside level is to watch $1810/15 and $1820. On the downside, any meaningful pullback now seems to find some support near the $1800 zones, below which the slide could further get extended towards the $1793/87 regions.

The important levels to watch for today: Support- 1800 and 1787 Resistance- 1815 and 1820.

Quote of the day - Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it. - Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-444

 

[syamfx2020]

Shares of department store chain Macy’s (NYSE: M) surged 133% in 2021. Macy’s was founded in 1858 and is headquartered in New York. The company engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods.

The stock price of Macy’s reached a fresh 52-week high of $37.95 on November 18th, 2021. Since then, the stock struggled to find the upside momentum and dropped back to near $20. After several weeks of a downside move, the stock finally jumped 18% on Jan 24th, 2022, and the stock held above the lower trendline.

Macy’s Q4 earnings preview

The retailer is scheduled to report fourth-quarter earnings results on Feb. 21, 2022. The company is expected to post quarterly earnings of $1.96 per share and revenues are expected to be $8.43 billion. During the third quarter, the company earnings came in at $1.23 a share and revenue rose 36% to $5.44 billion. The company had revenue of $5.44 billion during the quarter, compared to analyst estimates of $5.23 billion. Macy’s stock bounced 21% after the earnings announcement.

"Looking ahead to the fourth quarter, we remain a special place for holiday shopping, and our robust omnichannel ecosystem is showing resilience in the face of labor and supply chain challenges and enables us to meet customer shopping needs with speed and convenience," Macy's CEO, Jeff Gennette said on the Q3 earnings call.

Macy’s (NYSE: M) technical outlook

Technically the overall momentum remains mixed as the daily chart shows that the stock has been in a strong bearish trend in the past 2 months. However, In the short term, if the stock holds above the lower trendline then the stock may eventually rise back to above $30. On the other side, if the price break and close below the lower trendline, the next immediate support is to watch is $23 and then $20.40.

Read the detailed report here- https://gulfbrokers.com/en/macys-m-held-the-lower-trendline-what-next

 

[syamfx2020]

This week all eyes will be turning to the US inflation data which will give us the latest insight into whether inflation continues to rise further upside. The Bureau of Labor Statistics will release its January inflation data on Thursday. Economists are forecasting that US consumer price index (CPI) inflation rose by 7.3 per cent year-on-year in January.

On the earnings front, the companies due to release their results will be CHIPOTLE, UBER, DISNEY, TWITTER and the PFIZER will be among those reporting earnings this week.

GOLD

The precious metal ended mixed on Friday as investors grew more cautious ahead of this week inflation data. Beyond the inflation data, the focus will be on the geopolitical risk of Russia invading Ukraine.

For this week, $1,794 is the immediate support level, followed by $1,788. If the pair breaks below the $1,788, the slump will quickly extend toward the $1,7280 mark. On the upper side, gold is likely to find immediate resistance at $1,81+6, any break above the $1,816 level could lead the prices of the precious metal towards the next resistance levels of $1,822 and $1,830.

DOLLAR INDEX

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies dropped to its lowest in 2 weeks on Friday. For this week, the main drivers for the Index will be the January US CPI and Michigan’s consumer sentiment number.

This week, On the downside, 95.00 will act as an initial cushion, any break below this level will open doors to 94.60. On the flip side, the bullish breakout of 95.80 is likely to push the greenback into a new trading zone, which may offer further buying opportunities until 96.20/30.

EURUSD

The euro surged to a three-week high against the U.S. dollar last week boosted by hawkish comments from the ECB President Lagarde. “Stands ready to adjust all of its instruments as appropriate, to ensure that inflation stabilises to 2% over the medium term” – ECB President Lagarde said.

This week, the first resistance is located around 1.1485, a break above this level will confirm a possible move to 1.1510/30. On the downside, any meaningful pullback now seems to find some support near the 1.1410 zones, below which the slide could further get extended towards the 1.1380/50 region.

DOW JONES

Dow Jones ended last week slightly lower following the release of the mixed US employment report. The report showed the NFP increased by 467K instead of the expected 150k but the unemployment rate increased from 3.9% to 4.0%. This week the Dow traders should turn their attention to the earnings season and away from concerns around the U.S. Federal Reserve tightening.

For this week, 34,650 remains the key support area to watch, any break below this level will open 34,000 minimum. On the upper side, If we can come out of the last two session consolidation and press back above 35,700 then the key resistance area to watch is 36,050/200.

Read more- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-16

 

[syamfx2020]

American motorcycle manufacturer Harley-Davidson (NYSE: HOG) is scheduled to announce fourth-quarter financial results before markets open on Tuesday. Consensus forecast EPS of -$0.41 on revenue of $643 million. In the last two weeks, Harley shares rebounded more than 8% from the previous month lows.

$HOG key technical levels to watch:

Support: $34.50 and $31.00

Resistance: $37.40 and $40.50

EQUITIES

European shares opened higher on Tuesday after the European Central Bank President Christine Lagarde said there is no need for big monetary policy tightening in the eurozone.

OIL

Crude oil futures struggling to find the upside momentum as the oil traders continue to assess the nuclear talks between the United States and Iran. Overall, the momentum remained bearish throughout the European session.

CURRENCIES

In the currency market, the Euro slips against the dollar on Tuesday while the Asian currencies like the Australian dollar and New Zealand dollar holding the early session gains against the greenback.

GOLD

The Safe-haven metal climbed to a fresh weekly high of $1822 on Tuesday supported by rising inflation pressure. On the other hand, escalated tensions between Russia and Ukraine raised the safe-haven demand for gold.

Economic Outlook

On the earnings front, U.S. meat processor Tyson Foods (NYSE: TSN) shares closed more than 12% on Monday after the company last quarter results beat Wall Street estimates.

Coronavirus update:

Worldwide, more than 390 million people have been confirmed infected and more than 5.7 million have died. The United States has confirmed over 75 million cases and has had more than 900,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: The currency pair trades near the psychological support area of 1.1400. If the bearish momentum continues then the next crucial support area to watch today is 1.1380 and 1.1350.

The important levels to watch for today: Support- 1.1380 and 1.1340 Resistance- 1.1430 and 1.1460.

GOLD: The yellow metal hovers near the $1820 area. The near-term resistance is around $1822, any break over targets $1828/$1832. On the downside, the first immediate support around $1800 followed by $1795/90.

The important levels to watch for today: Support- 1800 and 1787 Resistance- 1815 and 1820.

Quote of the day - Successful traders always follow the line of least resistance – follow the trend – the trend is your friend.

Read more- https://gulfbrokers.com/en/daily-market-report-445

 

[syamfx2020]

The beverage and snack giants Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP) is scheduled to announce fourth-quarter financial results on Thursday, Feb 10 before the bell. Beverage makers Coke and Pepsi expected to beat the Q4 market expectations. However, fears over the Omicron variant of COVID-19 may have impacted the overall performance of the last quarter compared to the previous year.

In the third quarter, Coca-Cola’s revenue increased 16% to $19.2 billion, which translated into earnings of $0.65 per share. During the same period, Pepsi revenue rose 11.6% to $20.19 billion, while the earnings for the three months ended on September 4 were pegged at $1.79 per share.

Both Pepsi and Coca-Cola shares pause the strong upside rally ahead of the earnings announcement, the bullish rally supported by strong demand for sports drinks. Meanwhile, technically the overall momentum remains bullish.

Coca-Cola shares have climbed roughly 23% over the past year and the current market cap is $266 billion. $KO is expected to post quarterly earnings of $0.40 per share and revenues are expected to be $8.92 billion.

Pepsi stock rallied more than 20% in 2021 and it reached the all-time high of $177.24 on Jan 21, 2022. $PEP is expected to post quarterly earnings of $1.51 per share and revenues are expected to be $24.22 billion.

Read more here-

Coca-Cola and Pepsi stocks pause the rally ahead of Q4 earnings

The beverage and snack giants Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP) is scheduled to announce fourth-quarter financial results on Thursday, Feb 10 before the bell.

gulfbrokers.com

 

[syamfx2020]

Media and Entertainment giant Walt Disney (NYSE: DIS) is scheduled to report fiscal 2022 first-quarter results today after market close. Disney is expected to post quarterly earnings of $0.61 per share and revenues are expected to be $18.56 billion. The investors should closely monitor the last quarter subscriber growth as the company witnessed sluggish subscriber growth in recent times due to tough competition.

$DIS key technical levels to watch:

Support: $136 and $129

Resistance: $147.80 and $160

EQUITIES

US futures advanced on Wednesday boosted by better-than-expected earnings results. American motorcycle manufacturer Harley-Davidson (NYSE: HOG) reported a 40% jump in fourth-quarter sales and the stock closed 15% higher on Tuesday. European shares holding the previous session gains despite the release of weak German macro-economic data.

OIL

Crude oil futures extend the decline in the European session driven by the possibility of Iranian oil returning to global markets. On the other hand, API data showed the US crude inventories decreased by 2.025 million barrels last week. Moving ahead to the North American session, the Investors now await the weekly EIA report on US crude oil stockpiles.

CURRENCIES

In the currency market, the US Dollar Index (DXY), which measures the value of the greenback against the basket of six major currencies trading flat on Wednesday as the investors wait for tomorrow’s US CPI Inflation Report.

GOLD

The Safe-haven metal reached the fresh 2 weeks high on Wednesday supported by rising inflation fears. While the upside momentum is limited due to rising expectations for Federal Reserve interest rate hikes.

Economic Outlook

On the data front, the U.S. trade deficit increased 27% last year to an all-time high of $859.1 billion. US imports 1.6 percent from the previous month to a new record high of USD 308.9 billion in December of 2021.

Coronavirus update:

Worldwide, more than 390 million people have been confirmed infected and more than 5.7 million have died. The United States has confirmed over 75 million cases and has had more than 900,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, 1.1390 remains the key support area to watch, any break below this level will open 1.1350 minimum.

The important levels to watch for today: Support- 1.1400 and 1.1380 Resistance- 1.1450 and 1.1480.

GOLD: For today, the resistance for the metal is around $1836. On the flip side, a breakdown through $1820 would negate that bias and suggest a test of the $1810/00 support region.

The important levels to watch for today: Support- 1822 and 1815 Resistance- 1832 and 1836.

Quote of the day - "When I get together with other traders and they start exchanging war stories about different trades, I have nothing to say. To me, all our trades are the same." ― Larry Hite.

Read more- https://gulfbrokers.com/en/daily-market-report-446

 

[syamfx2020]

Ride-hailing and food delivery company Uber (NYSE: UBER) posted better-than-expected fourth-quarter financial results on Wednesday after the market close. For the last quarter, Uber reported revenue of $5.78 billion, up 83% year-over-year. Meanwhile, Uber’s rival Lyft reported Q4 revenue of $969.9 million versus $569.9 million in Q4 2020, an increase of 70 percent year-over-year.

• Earnings per share (EPS) $0.44 vs. -$0.35 expected
• Revenue $5.78 billion vs. $5.35 billion expected

Uber strong Q4 results were boosted by the growth of Uber’s delivery segment, delivery gross bookings reached $13.4 billion for the quarter and overall, gross bookings grew 51% year-over-year to $25.9 billion.

“Delivery volume stayed strong as we continued to improve the profitability profile of our business,” Uber CEO Dara Khosrowshahi said.

"While the Omicron variant began to impact our business in late December, mobility is already starting to bounce back, with gross bookings up 25% month-on-month in the most recent week," Khosrowshahi said

Uber stock bounced more than 6% in after-hours trading on Wednesday following the release of upbeat Q4 earnings results.

Read more- https://gulfbrokers.com/en/uber-q4-earnings-beat-expectations

 

[syamfx2020]

Gold price, US stock futures and the EURUSD holds on to its recent gains ahead of the most waited US consumer price index inflation report, which is set to be released later today. The consensus stands at 7.3%, which would be up from 7.0% in December.

EQUITIES

US futures surged to the fresh monthly high on Thursday boosted by stronger-than-expected earnings results and mixed comments from the Atlanta Fed President Raphael Bostic and Cleveland Federal Reserve President Loretta Mester.

OIL

Crude oil futures slightly recovered from the previous session losses after the EIA data showed US crude stockpiles fell by about 4.8 million barrels last week, compared with market expectations for a 369K barrel increase.

CURRENCIES

In the currency market, the US dollar index struggling to hold the upside momentum. Moving ahead, the future direction of the USD will depend on today’s Inflation report. On the other hand, the Australian dollar remains one of the strongest currency pairs this week.

GOLD

The Safe-haven metal trades flat on Thursday as the investors waiting for the release of U.S. consumer price data for further cues on the Fed's stance on inflation. At the time of writing, the gold price trades above $1830.

Economic Outlook

On the data front, the Reserve Bank of India (RBI) has decided to keep the benchmark lending rate unchanged at 4 per cent. The MPC has also decided to keep the reverse repo rate unchanged at 3.35 per cent.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 13.30

US – CPI: GMT – 13.30

Coronavirus update:

Worldwide, more than 395 million people have been confirmed infected and more than 5.75 million have died. The United States has confirmed over 76 million cases and has had more than 905,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

DOLLAR INDEX: DXY needs to stay above 95; otherwise. 94.80/60 may be visible soon. On the upper side, 95.85 and 96.20 are the key resistance zones to watch.

The important levels to watch for today: Support- 95.30 and 95.00 Resistance- 95.60 and 95.90

GOLD: For today, If the bullish momentum continues then the next resistance area to watch is 1840/45. On the downside, the immediate support is near 1828/26, and a further breakout below $1820 could lead the pair towards the next support level of $1814/08.

The important levels to watch for today: Support- 1826 and 1818 Resistance- 1836 and 1845.

Quote of the day - “I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” – Tom Basso.

Read more- https://gulfbrokers.com/en/daily-market-report-447

 

[sebking1986]

Perhaps a sign off the times and post covid opening up? Be interesting to see if this is a catalyst to break out the channel.

 

[syamfx2020]

The great British pound slightly rebounded from the early losses following the release of UK macro-economic data. However, the overall momentum remains mixed after the currency pair experienced a sharp slide on Thursday. The UK GDP for the last quarter came 1%, slightly below forecasts of 1.1%.

EQUITIES

Wall Street ended sharply lower on Thursday driven by hotter-than-expected inflation data and hawkish comments from the Fed's James Bullard.

On the earnings front, Affirm Holdings (NASDAQ: AFRM) shares plunged more than 20% on Thursday after the company accidentally tweeted its earnings before the scheduled release.

OIL

Crude oil futures extend losses as bearish sentiment dominates. On the other hand, the investors await the outcome of US-Iran talks that could lead to increased global crude supply. A deal could see the lifting of sanctions on Iranian oil and ease global supply tightness.

CURRENCIES

In the currency market, EURUSD remains under pressure after the buyers failed to break above the 1.15 phycological level. Meanwhile, the US dollar index advanced higher on Friday following the release of US inflation data that saw its biggest annual increase in 40 years.

GOLD

The Safe-haven metal reversed from the previous session gains after the Fed's James Bullard supported a sharp increase of a full percentage point in the benchmark short-term interest rate by July. At the time of writing, the metal trades below $1825.

Economic Outlook

On the data front, the US Consumer Price Index, grew 7.5% from a year ago, the Labor Department reported Thursday — the largest increase since May of 1982. The result came above market forecasts of 7.3%. On a monthly basis, consumer prices increased 0.6%, in line with forecasts.

Coronavirus update:

Worldwide, more than 395 million people have been confirmed infected and more than 5.75 million have died. The United States has confirmed over 76 million cases and has had more than 905,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: The currency pair attempted to bounce but is currently struggling to extend the rebound. On the downside, the next key support area to watch today is 1.1370 and 1.1340.

The important levels to watch for today: Support- 1.1370 and 1.1340 Resistance- 1.1400 and 1.1430.

GOLD: On the daily time frame, the gold is currently supported at $1820, and the resistance is around $1840. On the upper side, the long-term buyers should wait for a daily close above the $1860.

The important levels to watch for today: Support- 1820 and 1815 Resistance- 1832 and 1836.

Quote of the day - In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it - Peter Lynch

Read more- https://gulfbrokers.com/en/daily-market-report-448