Microsoft (NASDAQ: MSFT) stock hit a fresh all-time high of $262 ahead of the earnings announcement. The company is scheduled to announce Q3 financial results on Tuesday after market close. Consensus forecast EPS of $1.78 on revenue of $41B. In its second quarter, $MSFT reported earnings of $2.03 per share and revenue of $43.08 billion.
Earlier this month Microsoft announced its $19.7 billion acquisition of Nuance Communications. Nuance develops conversational AI and ambient intelligence technology. The acquisition is Microsoft’s biggest since the $26-billion purchase of LinkedIn.
$MSFT key technical levels to watch:
Support: $255 and $245/30
Resistance: $263 and $280
Global stocks and US stock futures trading flat on Tuesday ahead of the Federal Reserve's monetary policy meeting beginning later in the day. On the other hand, Tesla shares fell more than 2% in after-hours trading despite better-than-expected Q1 financial results.
“Demand for vehicles usually slows in the January-to-March period, but Tesla “saw an increase in demand,” – Tesla CEO, Elon Musk said after the earnings announcement.
On the earnings front, 3M (NYSE: MMM) and Hasbro (NASDAQ: HAS) reporting earnings today before the bell while Microsoft (NASDAQ: MSFT), Pinterest (NYSE: PINS) and Alphabet (NASDAQ: GOOGL) is scheduled to report results after the market close.
Crude oil prices recovered from the previous session lows as Investors now await the weekly API report on US crude oil stockpiles due later in the day. Meanwhile, OPEC+ Joint Technical Committee on Monday raised its global 2021 crude demand forecast to 6 million bpd from last month's estimate of 5.6 million bpd.
In the currency market, the US dollar Index struggling to find the upside momentum ahead of the US central bank meeting. The index closed mixed on Monday following the release of March US durable goods data. US durable goods increased by 0.5% in March of 2021 but came below market forecasts of 2.5%.
The Safe-haven metal closed slightly higher on Monday supported by surging global COVID-19 cases and mixed US Durable goods data.
On the data front, The Bank of Japan on Tuesday kept its monetary policy unchanged, and the bank said the Japanese economy will likely grow 4.0%, rather than the previously estimated 3.9% expansion.
"Japan's economy has picked up as a trend, although it has remained in a severe situation due to the impact of COVID-19 at home and abroad," the BOJ said.
Moving ahead to the North American session, the traders and investors should closely watch the release of the US CB consumer confidence data.
Worldwide, more than 147 million people have been confirmed infected and more than 3.1 million have died. The United States has confirmed over 32 million cases and has had more than 572,000 deaths from COVID-19, the highest totals in the world. On the positive side, India reported 323,144 new cases, slightly below a worldwide peak of 352,991 reached yesterday.
EUR/USD: The currency pair retreats from the new month high of 1.2115 following the weaker-than-expected German IFO data.
The important levels to watch for today: Support- 1.2045 and 1.2010 Resistance- 1.2100 and 1.2120.
GOLD: The yellow metal trading in a range between $1770 and $1796 for the last few days. At the time of writing, the gold price trading above $1780. Overall, the momentum remained bullish throughout the Asian session.
The important levels to watch for today: Support- 1774 and 1770 Resistance- 1784 and 1790.
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.
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