Daily Market Report by GulfBrokers 2020-2021

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The number of coronavirus-related deaths in the United States crossed 300,000, the highest figures in the world. On the positive side, On Monday, the first dose of the Pfizer vaccine was administered in New York City after federal regulators gave emergency approval. Worldwide coronavirus deaths have reached 1,627,977 with more than 73.1 million reported cases.

EQUITIES

Wall Street ended lower on Monday as investors remain concerns about increasing COVID-19 deaths in the US. On Monday, the New York Governor Andrew Cuomo said that the city could enter a full shutdown within a month.

OIL


Crude oil prices rebounded from the Monday's low ahead of the API inventory data. On Monday, OPEC revised down its estimate of global demand from last month's forecast by 1 million b/d for the first quarter of 2021 and 620,000 b/d for the second quarter.

CURRENCIES

In the currency market, The Dollar index still continuing the downtrend and the pair hits new two and a half year low 90.42 on Monday. On the other hand, the Australian dollar retreated from the highs following the dovish RBA minutes.

GOLD

Gold prices trading volatile ahead of the Federal Reserve's two-day policy meeting that will begin later in the day. During the previous session, the yellow metal dips to a fresh weekly low of $1818.

Economic Outlook

On the data front, data from the National Bureau of Statistics showed today, China’s Industrial production climbed by 7% year-on-year in November from 6.9%. While retail sales grew 5% year-on-year in November from 4.3% a month ago.

During the Asian session. The RBA released the last meeting minutes. “The high unemployment rate and excess capacity across the economy more broadly were expected to result in subdued wages growth and inflation over coming years,” the minutes said.

Coronavirus update:

Coronavirus is continuing its spread across the world with about 72 million confirmed cases in 190 countries and more than 1.6 million deaths. Germany had recorded over 1,350,800 confirmed cases and more than 22,080 deaths.

Technical Outlook

Dollar Index:
US dollar slightly recovered from the previous session lows. At the time of writing, USD hovers near 90.70 level.

DXY


The important levels to watch for today: Support- 90.40 and 90.00 Resistance- 90.90 and 91.20.



GOLD: The gold price trading steady on Tuesday. The continuous jump in coronavirus cases globally helped to boost the demand for the precious metal.

gold neww


The important levels to watch for today: Support- 1825 and 1818 Resistance- 1844 and 1850.

Quote of the day: Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend. – Jesse Livermore.

Read more- https://gulfbrokers.com/en/daily-market-report-228
 
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Wall Street and market participants witnessed a volatile 2020. Almost every stock rebounded from the March low and US indices climbed to record highs. During the first quarter of 2020, the stocks plunged due to the coronavirus pandemic.

Here are the 5 best performing US stocks so far in 2020​


The strong recovery of US equities has been supported by optimism around potential COVID-19 vaccines and the Federal Reserve pumped liquidity into the market.

Zoom (NASDAQ: ZM)
  • The stock rallied more than 500% in 2020 and it reached the all-time high of $588 on Oct 19. $ZM considered one of the biggest winners during the pandemic time.
  • The company operating profit for the last quarter was $192.2 million, compared with an operating loss of $1.7 million for the same period a year ago.
Moderna (NASDAQ: MRNA)
  • The stock made a spectacular bullish rally from $17.68 on January 7, 2020, to $178 on December 01, 2020, and up by more than 700% this year.
  • Moderna was the first drugmaker to launch a coronavirus vaccine trial in humans in the U.S. Recently the stock pauses the upside rally as the Moderna COVID-19 Vaccine awaits the U.S. FDA approval.
Tesla (NASDAQ: TSLA)
  • Tesla stock is up more than 600% so far in 2020. On November 16th S&P Dow Jones said it would add Tesla shares to the S&P 500 on December 21. Since the announcement stock has risen more than 57%.
  • The company posted a net profit of $ 331 million in the July-September quarter, its fifth consecutive quarter of profitability.
  • The stock rally helped co-founder Elon Musk add $100.3 billion to his net worth this year and overtake Bill Gates to become the world’s second-richest person.
Pinterest (NYSE: PINS)
  • $PINS began trading in April 2019 that priced at 19 and right now the stock is trading above $70. 2020 has been a transformational year for Pinterest, the stock has surged approximately 275%.
  • During the third-quarter, Pinterest had 442 million monthly active users and revenue increased 58% from the year-ago period to $433 million.
Novavax (NASDAQ: NVAX)
  • $NVAX is up 2,500% since the beginning of the year. The stock has jumped from a price of $4 a share back in January to $150 in December. In August, the $NVAX hit an all-time high of $189.40.
  • The company reported weaker-than-expected third-quarter results. The last quarter loss associated with the manufacturing supply agreements for the company’s COVID-19 vaccine.

Here’s what I found 5 worst performing US stocks so far in 2020​


Airline and petroleum shares were the biggest losers in this year due to coronavirus lockdown and the oil prices drop. The crude oil prices witnessed the steepest drop since the Gulf War in 1991 but it rebounded from the March lows while few of the airline and petroleum shares still struggling to find the upside direction.

Wells Fargo (NYSE: WFC)
  • The stock is down 48% so far in 2020 and over the past three quarters, $WFC has seen earnings decline by 35%.
  • During the last quarter, the company reported EPS of 42 cents and revenue of $18.9 billion while the stock has gained 15.6% since the results.
United Airlines (NASDAQ: UA)
  • United Airlines stock is down around 45% this year with revenue down more than 65% from last year.
  • During November, the shares of the airline had gained 39.29% after the upbeat news on coronavirus vaccine.
Norwegian Cruise (NYSE: NCLH)
  • The stock price slides 56% year-to-date this year due to the coronavirus pandemic.
  • The company reported mixed third-quarter 2020 results. The revenue beat the Wall Street estimates while earnings missed the expectations.
Occidental Petroleum (NYSE: OXY)
  • The stock is down around 70% so far this year due to the COVID-19 crisis.
  • The estimated growth rate year over year of the company is -90% and the company posted a $3.8 billion loss for the third quarter.
Boeing Co (NYSE: BA)
  • Boeing shares sank more than 50% in 2020. Meanwhile, the shares gained upside momentum after the FAA lifted the grounding of the 737 MAX aircraft following the two deadly crashes.
  • Even though the stock received some upside momentum recently the shares are still down 30% from their 2020 highs.

Read more- https://gulfbrokers.com/en/wall-street-top-5-winners-and-losers-of-2020
 
This week the key events to watch FOMC, BOE, SNB and BOJ central bank meetings.

Earnings to watch: Nike, Accenture and Fedex

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Today the traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. The central bank scheduled to issue its policy statement at 19.00 GMT. The Fed is expected to leave interest rates unchanged at the end of a two-day meeting.

EQUITIES

Wall Street recovered the previous session losses and closed higher on Tuesday on renewed hopes that Washington will roll out new fiscal stimulus before 2021. U.S. House Speaker Nancy Pelosi has scheduled a meeting with other congressional leaders to discuss a relief package. The new plan includes $748 billion in spending for programs that are popular for both sides, including unemployment benefits and small business aid.

OIL

Crude oil price trading steady on Wednesday despite weaker-than-expected API inventory data. The data showed in the US the crude inventories rose by 1.97 million barrels in the week ended December 11th of 2020, following a 1.14 million rise in the previous week.

CURRENCIES

In the currency market, the dollar index plunged to fresh monthly lows on Wednesday. On Tuesday, the Index extends lower to below 90.40 after the US Empire State Manufacturing Index for December fell to 4.90, against the projected 6.90.

GOLD

The gold price trading steady above $1850 on Wednesday ahead of US central bank interest rate decision and statement. The overall, momentum remains bullish throughout the day.

Economic Outlook

On the data front, the UK unemployment rate figures came 4.9%, compared to 4.8 per cent in the previous period and below forecasts of 5.1 per cent.

On the post-Brexit front, the British pound climbed back to near the Monday highs after a reporter from BBC Newsnight tweeted about a ‘Big buzz in the last hour’ among Conservative MPs, saying the UK is heading towards a Brexit trade deal with the EU.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

CANADA – Consumer price index: GMT – 13.30

US – Crude oil inventories: GMT – 15.30

US – Fed rate decision and statement: GMT – 19.00

US – Fed chair Jerome Powell conference: GMT – 19.30

Coronavirus update:

Worldwide, more than 73 million people have been confirmed infected and more than 1.6 million have died, according to Johns Hopkins University. The United States has passed 16.5 million confirmed cases, with more than 302,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading strong ahead of Eurozone and German PMI data. The downside looks solid as traders should continue to accumulate on dips towards 1.2040-1.2000 in the near term.

eurusd


The important levels to watch for today: Support- 1.2100 and 1.2060 Resistance- 1.2180 and 1.2210.

GOLD: The gold price trading rose fresh weekly high of $1858 on Wednesday. If the bullish momentum continues the next upside levels to watch $1866 and $1875.

gold neww


The important levels to watch for today: Support- 1850 and 1842 Resistance- 1868 and 1875.

Quote of the day: We don’t have to be smarter than the best. We have to be more disciplined than the rest – Warrant Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-229
 
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Apple (NASDAQ: AAPL) stock climbed to near the all-time highs on Tuesday. On Tuesday, the stock closed 5% higher supported by the company reportedly wants to increase iPhone production by roughly 30% year over year. The Apple stock rallied more than 70% in 2020.

HASH


As per the recent report, Apple plans to produce up to 96 million iPhones for the first half of 2021. The U.S. tech giant is also working on a new Apple TV, a home entertainment device for video-on-demand services, for next year – Nikkei Asia reported.

Apple’s Earnings for the fiscal fourth quarter showed revenue at $64.7 billion, versus analysts’ estimates of $63.7 billion. Earnings per share (EPS) came in at 73 cents, which beat the 70 cents per share that was expected.

Read more- https://gulfbrokers.com/en/apple-stock-enjoys-santa-claus-rally
 
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