Daily Market Report by GulfBrokers 2020-2021

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The world's largest pizza chain Domino's Pizza (NYSE: DPZ) announced third-quarter financial results on Thursday. The company earnings missed the consensus estimate while the revenue rose 17.9% to $968 million, topping expectations of $953 million. On the other hand, Domino’s operating profit margin was 37.4% of revenues in the third quarter, down from 38.5% in the second quarter.

  • Earnings per share (EPS) $2.49 vs. 2.79 expected
  • Revenue $968 million vs. $953 million expected
The company said its same-store sales rose 17.5% in the U.S. in the third quarter. The international business posted positive same-store sales results, with a growth of 6.2% during the quarter. During the quarter, the company permanently closed 126 restaurants, primarily in India. Domino's added 83 net new locations.

"I am extremely proud of our global franchisees, operators, and corporate teams for their relentless passion and energy as we continue to navigate through the pandemic," said Ritch Allison, Domino's CEO. "Our strong third-quarter results once again demonstrated our focus on value, service, quality, and innovation to meet customer needs.

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$DPZ shares closed 7% lower on Thursday after mixed third-quarter financial results. The stock moved to 32.16% in the last six months and climbed 45% in 2020.

Read more- https://gulfbrokers.com/en/dominos-misses-q3-earnings-while-revenue-beats
 
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US Dollar Index trades near the two-week low on Friday. The Index retreated from the highs by hopes of new stimulus and set to post a decline for the second consecutive week. Earlier Trump suspended negotiations on a new program to support the American economy until the end of the presidential elections, but then announced the $25 billion package for airlines and a few other portions of stimulus, which are aimed at small businesses and households.

EQUITIES

Global stocks trading higher over rising optimism about the Trump administration rolling out a new round of fiscal stimulus soon.

OIL

Crude oil prices extended gains as Hurricane Delta cut more than 90% of gulf crude output and the Saudis reportedly consider postponing OPEC plans to raise output. On the other hand, Oil and gas production in Norway is expected to contract by nearly 25% because of the ongoing strike.

CURRENCIES

In the currency market, the British Pound trades lower following weaker-than-expected economic data. UK's gross domestic product reported below expectations by just 2.1% in August and Industrial Production declined by 6.4% year-over-year compared to analyst consensus of -4.6%.

GOLD

Gold price surged higher supported by the weaker dollar and hopes for a small aid relief package for airlines and small businesses.

Economic Outlook

On the data front, the Caixin Services Purchasing Managers Index (PMI) advanced to 54.8 last month from 54 in August. While the Composite PMI fell to 54.5 in September 2020 from 55.1 in August.

On Thursday, the Labor Department released the latest jobless claims data, the US Jobless Claims for the week ending October 2 declined from 849K to 840K, which was worse than the projected decline to 820K.


Coronavirus update:

The number of people infected with the coronavirus across the world crossed 36.5 million, of which at least 1.06 million people have died and 25.4 million have recovered, according to data released by the Johns Hopkins University. Spain's health ministry reported 12,423 new coronavirus cases and 126 confirmed deaths on Thursday. Russia's daily coronavirus cases surge to a record high on Friday, with authorities reporting 12,126 new infections, pushing the total to 1,272,238.

Technical Outlook

EUR/USD:
The currency pair surged to near 1.1800 zones boosted by the weaker dollar and strong economic data.

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The important levels to watch for today: Support- 1.1760 and 1.1720 Resistance- 1.1810 and 1.1840.

GOLD: The yellow metal trades below the critical $1920 resistance zone. Overall, the momentum remained bullish throughout the day.

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The important levels to watch for today: Support- 1907 and 1900 Resistance- 1921 and 1926.

Quote of the day: When you make a trade you must have the patience to wait for opportunities to exit right or to make a profit.

Read more- https://gulfbrokers.com/en/daily-market-report-183
 
IBM (NYSE: IBM) shares closed 6% higher on Thursday after the IT giant announced to spin off its IT infrastructure unit into a new publicly-traded firm. The new company will have 90,000 employees with a new name by the end of 2021.

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Dollar Index

Support: 92.80 and 92.20 Resistance: 93.55 and 94.10
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EURUSD

Support: 1.1760 and 1.1690 Resistance: 1.1860 and 1.1920
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AUDUSD

Support: 0.7160 and 0.7100 Resistance: 0.7245 and 0.7285
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GOLD

Support: 1908 and 1880 Resistance: 1952 and 1975
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Bitcoin (BTC) started the week on a Positive note and trades steady above $11000 supported by the weaker dollar and payments company Square announced a $50 million investment in Bitcoin. At the time writing, BTC trades around $11380 the highest level since Sept. 2, and the next important level to watch $11500.

EQUITIES

Global stocks and US futures trading mixed on Monday as investors' worries about a second wave of infections mounted. On the other hand, US House Speaker Nancy Pelosi and Senate Republicans on Saturday rejected President Donald Trump's roughly $1.8 trillion stimulus proposal. European stocks trade lower after new infections in France slowed to more than 16.1K on Sunday from more than 26K the day before and the number of infections in Germany has made its biggest jump since April.

OIL

Crude oil prices retreated from the last week highs following a reported end to a strike in Norway that threatened production. Apart from this, the production in Libya is expected to rise to 355,000 barrels per day after force majeure at the Sharara oilfield was lifted on Sunday.

CURRENCIES


In the currency market, the US dollar slightly rebounded from the two-week lows. Meanwhile, the British pound trades volatile driven by Brexit headlines and the rising number of cases in the UK. The informal negotiations on Brexit continue in Brussels ahead of the October 15th meeting of EU leaders at the European Council.

GOLD

Gold price slides on Monday after the yellow metal settled at their highest in three weeks on Friday. The gold price climbed to a fresh monthly high of $1932 during the Asian session.

Economic Outlook

This week the main highlights of the economic calendar will be the release of UK and Australia employment reports, US CPI and retail sales, and Oil inventories.

With less than one month to go to voting day for the US presidential election held on 3 November 2020. As per recent polls, former Vice President Joe Biden maintains his lead over President Donald Trump in the presidential race. While the Commission on Presidential Debates has canceled the 2nd Presidential Debate after President Trump refused to participate in a virtual debate.

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 37.4 million, of which at least 1.07 million people have died and 26 million have recovered, according to data released by the Johns Hopkins University. The United States has passed 7.7 million confirmed cases, with over 214,000 deaths from COVID-19, the highest numbers in the world. India's total coronavirus cases rose by 66,732 in the last 24 hours to 7.12 million on Monday morning. The number of confirmed coronavirus cases in Germany increased by 2,467 to 325,331 and the reported death toll rose by 6 to 9,621.

Technical Outlook

USD/CAD:
The currency pair trades near the demand area of 1.3100/1.3090. At the time of writing, the Loonie trades around 1.3130.

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The important levels to watch for today: Support- 1.3090 and 1.3050 Resistance- 1.3160 and 1.3200.

GOLD: The yellow metal testing the short-term support area $1920, any break below this level the next support to watch the $1910 zone.

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The important levels to watch for today: Support- 1912 and 1906 Resistance- 1930 and 1936.

Quote of the day: if you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-184
 
A busy week ahead as investors keep an eye on the Q3 bank's earnings season, EU meeting, US retail sales, and CPI.

Earnings to watch Wells Fargo, JP Morgan, Bank of America, Infosys, Delta airlines, Citi group.

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Airline stocks closed higher for the second consecutive week on Friday after the US President Trump urged $25 billion in relief for the industry. Overall, the momentum for Airline shares remained bullish throughout last week. Trump said last Tuesday that Congress should quickly extend $25 billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic.

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American Airlines (NASDAQ: AAL) and United Airlines (NASDAQ: UAL) shares surged more than 4% on Wednesday after Trump’s announcement of a stimulus aid. Both the companies recently announced they would begin furloughing over 32,000 workers as their pleas for additional bailout money went unanswered. On the other hand, JetBlue Airways (JBLU Stock Report) shares rose 7% higher and Delta Air Lines (DAL) climbed 3.5%.

"We will continue to encourage all parties to get back to the table and conclude a deal." Nicholas Calio, CEO of Airlines for America said.

Recently Airline companies implemented a couple of measures that help protect their passengers as well as their workers to fight against the Covid-19, including reduced flight capacities to accommodate physical distancing measures, frequent disinfection, and temperature checks, etc.

Read more- https://gulfbrokers.com/en/stimulus-hopes-sent-airline-stocks-up-for-second-week-in-a-row
 
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Apple (NASDAQ: AAPL) shares closed 6% higher on Monday ahead of its virtual "Hi, Speed" event on Tuesday. The company is set to reveal a new iPhone and other technology updates. The launch event will be an online event that will be live-streamed from the Apple Park and the Steve Jobs Theatre in Cupertino. One can also watch the event via the iOS YouTube app and on the app for Apple TV.

The technology giant is expected to reveal iPhone 12 series and all the new iPhone models are reported to have 5G. Some other announcements could include a new HomePod and new AirPod headphones. During the September "Time Flies" event, Apple unveiled a redesigned iPad Air and Apple Watch models.

EQUITIES

Asian shares traded slightly lower after mixed economic data. US stock futures retreated from the highs after extended its gains Monday from last week’s rally. In Hong Kong, the Hang Seng Index was closed as officials canceled trading in stocks and derivatives due to a typhoon warning.

OIL

Crude oil prices slightly reversed from the early session losses ahead of API inventory data. During the previous session, the Oil price slide amid concerns over excess supply in the market and worries about a possible drop in energy demand due to rising coronavirus cases.

CURRENCIES

In the currency market, the British pound dropped to a new daily low on Tuesday after data showed the UK unemployment rate rose more than expected in the June-August period. The employment rate in the UK increased to 4.5%, above forecasts of 4.3%.

GOLD

Gold price slipped to a fresh weekly low on Tuesday after the demand for the US dollar increased. On Monday, the yellow metal touched a fresh monthly high of $1932.

Economic Outlook

On the data front, China’s September’s trade surplus narrowed to $37 billion, compared to the consensus of $58 billion and $58.93 billion in August. The exports rose 9.9% from a year earlier to $239.8 billion in September, while imports gained 13.2% to $202.8 billion.

Moving ahead to the North American session, the US Consumer Price Index (CPI) data will also be key to watch and Q3 financial results from JPMorgan and Citigroup.


Coronavirus update:

The number of people infected with the coronavirus across the world crossed 37.5 million, of which at least 1.07 million people have died and 26 million have recovered, according to data released by the Johns Hopkins University. The U.S. has reported more than 7.7 million cases and 215,000 deaths, according to Johns Hopkins data. India reports 55,342 new cases for the past 24 hours, the lowest daily count in nearly two months, bringing the country total to 7.18 million. Meanwhile, South Korean drugmaker Celltrion says it has received approval for Phase 3 clinical trials of an experimental COVID-19 treatment.

Technical Outlook

EUR/USD:
The currency pair dropped to a fresh weekly low of 1.1780 on Tuesday after weaker-than-economic data.

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The important levels to watch for today: Support- 1.1760 and 1.1720 Resistance- 1.1810 and 1.1860.

GOLD: The yellow metal slightly rebounded from the early session lows. At the time of writing, the gold price trading around $1923.

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The important levels to watch for today: Support- 1918 and 1910 Resistance- 1926 and 1932.

Quote of the day: You are dealing with a lot of silly people in the marketplace; It’s like a great big casino and everyone else is boozing. If you can stick with Pepsi, you should be Ok – Warrant Buffet.

Read more: https://gulfbrokers.com/en/daily-market-report-185
 
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This week Investors will shift their attention to major US bank's earnings. JPMorgan (NYSE: JPM) and Citigroup (NYSE: C) are both due to release results on Tuesday, followed by Goldman Sachs (NYSE: GS), Wells Fargo (NYSE: WFC), Bank of America (NYSE: BAC), and Morgan Stanley (NYSE: MS) later in the week.

Third Quarter banks earnings season kicks off with stronger -than – expected results from JP Morgan.

  • Earnings per share: $2.92 vs. $2.23 expected
  • Revenue: $29.94 billion vs. $28.21 billion expected
The banking giant Citigroup will release its Q3 results on Wednesday before the bell. Citigroup earnings were expected to slide 49% to $1.01 a share, as revenue fell 7% to $17.21 billion.

Bank of America, Wells Fargo, and Goldman Sachs will report its third-quarter 2020 earnings results on Wednesday. During the last quarter, the Bank of America announced better-than-expected financial results. While the revenue of the US bank dropped 5.3% from a year earlier. Meanwhile, Wells Fargo reported a Q2 Net Loss of $2.4 billion during the last quarter.

Morgan Stanley plans to announce its Third Quarter 2020 financial results on Thursday. The bank reported strong second-quarter earnings, reporting a nearly $3.2 billion profit. During this Q3, $MS expected to post quarterly earnings of $1.22 per share and revenues to be $10.30 billion.
 
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