Daily Market Report - Thursday, Jan 19, 2023


It’s Netflix's (NASDAQ: NFLX) earnings day. The streaming giant will report its fiscal fourth-quarter results after today's closing bell. The company is expected to post quarterly earnings of $0.58 per share and revenues are expected to be $7.8 billion. Netflix expects to gain 4.5 million new streaming customers in Q4, compared with 8.3 million in the year-earlier quarter.

In the company's most recent earnings report, released on October 18, 2022, Netflix easily beat both its earnings per share (EPS) and revenue estimates. The streaming giant reported 2.41 million net new paid subscribers in Q3. As a result, the stock gained more than 30% in the last 3 months. The stock has performed erratically in the final months of 2022 but overall has dropped by a wide margin. It will be interesting to see how the company’s Q4 results look and the impact they could have on the share price.


Dow Jones and other US indices slumped sharply on Wednesday late session is driven by hawkish comments from Federal Reserve policymakers. St Louis Fed President James Bullard said policymakers should raise the policy rate above 5 percent "as soon as possible" before the end of rate hikes in the fight against inflation. Fed's Mester said policy rates should rise a little bit above the 5% to 5.25% range projected by policymakers for the end of 2023.


Crude oil futures retreat from the weekly highs, falling on a rise in recession fears following the release of weak US economic data. During the previous session, the oil prices climbed to fresh monthly highs on speculation regarding possible production cuts in Russia. Meanwhile, the API inventory data showed that US crude inventories increased by 7.6 million barrels last week.


In the currency market, the dollar index, which measures the currency against six major peers finally regained momentum supported by hawkish remarks from Federal Reserve officials. The Australian dollar plunged to a fresh weekly low against the US dollar after the release of disappointing December jobs data. The recent data showed Australia’s jobless rate increased to 3.5% in December 2022, compared with market estimates of 3.4%.


The precious metal struggling to regain upside momentum as the market participants and traders are boosting bets for the aggressive pace of Federal Reserve tightening after the hawkish comments from FED members. On Wednesday, the metal jumped back above $1920 after weak economic data fueled recession worries.

Economic Outlook

On the data front, US retail sales report posted a bigger decline than expectations for December. Retail sales contracted more than expected by 1.1 percent in December. While US PPI inflation fell further in December to 6.2%, the most since the start of the pandemic.

Moving ahead today, the important events to watch:

Eurozone – ECB meeting minutes: GMT – 12.30

US –Housing starts and building permits: GMT – 13.30

US – Philly FED index: GMT – 13.30

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

For today, the key resistance for Euro is 1.0850, a break above this level will confirm a possible move to 1.0880/1.0900. On the downside, any meaningful pullback now seems to find some support near the 1.0800 and then 1.0770 zones, below which the slide could extend further towards the 1.0850 followed by 1.0830.

The important levels to watch for today: Support- 1.0800 and 1.0750 Resistance- 1.0850 and 1.0900.

GOLD: Technically the current price action signals suggest that a short-term bearish trend remains intact. On the downside, if the bearish momentum continues the key support areas to watch are 1900 and 1885. On the upper side, however in case, if the metal manages to settle above 1930, it will gain upside momentum and head towards the next resistance level at 1945/50.

The important levels to watch for today: Support- 1900 and 1885 Resistance- 1918 and 1925.

Quote of the day - “We don't prognosticate macroeconomic factors, we're looking at our companies from a bottom-up perspective on their long-run prospects of returning.” —Mellody Hobson.

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