Daily Market Report - Wednesday, Mar 08, 2023


Apple (NASDAQ: AAPL) stock reversed from the fresh 5-week high after we heard another hawkish FED chair Powell's speech. The stock bounced more than 3% on Monday after the US investment bank giant Goldman Sachs recommends 'buying' Apple for the first time in six years. Goldman Sachs predicts that Apple’s Services business will account for 40% of gross profit by 2027, compared to 33% in 2021. The updated 12-month price target of $199 represents a roughly 32% upside from last week's closing price.

"We recommend buying Apple stock because we believe the market's focus on slower product revenue growth obscures the strength of the Apple ecosystem and the sustainable and visible revenue streams associated with it," Michael Ng, who leads Goldman Sachs' analyst team, said.

Meanwhile, Morgan Stanley analyst Erik Woodring raised his 12-month average price target from $175 to $180 and even highlighted five overlooked catalysts that could send Apple stock into a $230 bull scenario. “Looking long-term, we see a catalyst-rich path for the next 12 months that is underappreciated by investors,” Woodring said.


Global stock markets remain under pressure after Federal Reserve Chairman Jerome Powell vowed to keep pressing the fight against inflation. The Federal Reserve Chair Jerome Powell warned that the central bank would likely lift interest rates more than previously expected to fight inflation and cool down the economy. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Mr Powell said.


Crude oil prices showed a lot of volatility and closed with significant losses on Tuesday after FED Chair Jerome Powell offered a more hawkish outlook on monetary policy than markets anticipated. While the latest API inventory report showed the US crude inventories fell by 3.835 million barrels in the week ended March 3rd, following a 6.203 million barrels gain in the previous week.


In the currency market, the dollar gained for a second straight day against a basket of currencies. The greenback hit a fresh 8-week high on Tuesday as a hawkish tone by Federal Reserve chair Jerome Powell stoked concerns about interest rates being hiked by 50 basis points this month. Moving ahead to the North American session, the USD traders should closely monitor the release of the ADP employment report and the second round of Fed Chair Jerome Powell’s Testimony.


The safe-haven metal slightly rebounded while volatility remains high as the markets are unsettled by swings in volatility caused by the latest hawkish comments from FED chair Powell. However, the next three days are littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the gold.

Economic Outlook

On the data front, German retail sales plunged 6.9% in January, worse than forecasts of a 6.1% drop. On a monthly basis, retail sales declined by 0.3%, following a 5.3% slump in December. Industrial production in Germany advanced 3.5% in January 2023, well above market expectations of a 1.4% rise.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 13:15

US – BOC interest rate decision and statement: GMT – 15:00

Technical Outlook and Review

Technically the current price action signals suggest that the bearish trend remains intact. For today, if the bearish momentum continues the next downside levels watch 1.0500 and 1.0480. On the flip side, the immediate resistance is at 1.0550 and then 1.0570.

The important levels to watch for today: Support- 1.0500 and 1.0480 Resistance- 1.0550 and 1.0570.

GOLD: Technically the overall trend still looks bearish after the previous session's selling pressure and the short-term support around $1800. If the metal breaks below $1800 the next important support at $1790.

The important levels to watch for today: Support- 1800 and 1790 Resistance- 1818 and 1830.

Quote of the day - The elements of good trading are (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance - Ed Seykota.
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