Daily Market Report by GulfBrokers 2020-2021

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UK and European shares slip lower on Wednesday after mixed corporate earnings results and amid growing concerns over rising bond yields in the US.

EQUITIES

Wall Street expected to open lower on Wednesday as the investors awaiting approval of the USD 1.9 trillion economic support package previously proposed by Joe Biden.

On the earnings front, Shopify (NYSE: SHOP) and Wix.com (NASDAQ: WIX) reporting earnings today before the bell while Twilio (NYSE: TWLO) is scheduled to report results after the market close.

OIL


Crude oil price recovered from the previous session lows supported by the progress on coronavirus vaccine rollouts and the slowing pace of infections in Europe and the US.

CURRENCIES

In the currency market, the US Dollar Index remained steady above 90.70 ahead of US retail sales data. While the British pound slightly trading weaker on Wednesday, during the previous session the pair has hit its highest level since April 2018.

GOLD

The safe-haven metal extends lower after the US dollar rebounded from the weekly session lows. The recent Dollar rally supported by the sharp upsurge witnessed in the US Treasury bond yields.

Economic Outlook

On the data front, the UK Consumer Prices Index crept increased by 0.7% in January from 0.6% in December – exceeding inflation forecasts of 0.5% for the month.

On Tuesday, the German economic data showed the ZEW Economic Sentiment in February increased from 58.3 to 69.6 points, while analysts expected a further decline to 57 points. Meanwhile, the last quarter Eurozone GDP came in at -0.6%, against the expectations of -0.7%.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

US – FOMC meeting minutes: GMT – 19.00

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 109.3 million. The United States has confirmed over 27.7 million cases and has had more than 487,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading lower on Wednesday. At the time of writing, the pair hovers near the short-term support area 1.2060.

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The important levels to watch for today: Support- 1.2050 and 1.2000 Resistance- 1.2100 and 1.2130.

GOLD: The yellow metal touched a fresh weekly low of $1784 on Wednesday. If the bearish momentum continues the next downside levels to watch $1770/65.

gold neww


The important levels to watch for today: Support- 1774 and 1770 Resistance- 1796 and 1800.

Quote of the day: I made my first investment at age eleven. I was wasting my life up until then- Warren buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-262
 
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On Wednesday, the U.S. Commerce Department released the latest retail sales data. The data showed the retail sales for January increased stronger than anticipated, with a sharp gain of 5.9% against expectations of 1.1%.

EQUITIES

Wall Street ended higher on Wednesday boosted by better-than-expected macroeconomic data from the US and strong Q4 earnings results.

On the earnings front, Walmart (NYSE: WMT) and Fiverr (NYSE: FVRR) reporting earnings today before the bell while Roku (NASDAQ: ROKU) is scheduled to report results after the market close.

OIL

Crude oil price trading steady supported by strong API inventory data. The data showed the US oil stocks fell by 5.8 million barrels in the week ended February 12th, after a 5.4 million draw a week earlier. On the other hand, the WSJ reported that Saudi Arabia plans to increase oil output in the coming months, reversing a recent big production cut, a sign of growing confidence over an oil price recovery.

CURRENCIES

In the currency market, the EURO slightly recovered from the previous session losses ahead of the European Central Bank meeting minutes. During the previous session, the currency pair hit the fresh weekly low of 1.2021.

GOLD

The safe-haven metal slightly rebounded after the metal found the short-term buyers above $1770 area. Overall, the momentum remains bearish throughout this week.

Economic Outlook

On the data front, the Unemployment Rate in Australia in January fell from 6.6% to 6.4% against the forecast of 6.5%.

On Wednesday, the FOMC published the minutes of their latest meeting. The minutes showed the central bank will be keeping policy loose for the foreseeable future. The minutes also suggested that the pace of the economic recovery had moderated in recent months.

Moving ahead today, the important events to watch:

US – Weekly jobless claims: GMT – 13.30

US – Building permits: GMT – 13.30

US - EIA crude inventories: GMT – 16.00

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 109.6 million. The United States has confirmed over 27.7 million cases and has had more than 488,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBP/USD:
GBPUSD rebounded back to above 1.3900 after the US Dollar retreated from the fresh weekly high. Today, GBP again expected face resistance around 1.3920/50 then 1.3990 along with the support around 1.3830 & 1.3800.

euraud


The important levels to watch for today: Support- 1.3860 and 1.3820 Resistance- 1.3940 and 1.3990.

GOLD: The precious metal trading above $1785 during the European session. On the upper side, the immediate resistance to watch $1790/96.

gold neww


The important levels to watch for today: Support- 1780 and 1770 Resistance- 1790 and 1796.

Quote of the day: If past history was all there was to the game, the richest people would be Librarians – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-263
 
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The San Francisco-based cloud communications platform Twilio (NYSE: TWLO) shares jumped more than 10% in the pre-market trading on Thursday and climbed to a fresh all-time high of $457.30. The recent rally boosted by the better-than-expected fourth-quarter revenue and earnings results.

  • Earnings per share (EPS) $.4 vs. -$.8 expected
  • Revenue $548.1 Million vs. $454.8 Million expected
“Twilio's total revenue growth of 65% year-on-year in the fourth quarter continued the strength and momentum we've seen over an extraordinary year,” – CEO Jeff Lawson said.

The company also benefited from strong customer growth. At the end of the last quarter, Twilio had more than 221,000 active customers, an increase of 23% over the previous year.

Can the rally last?

spx500


Over the last 3 years, the stock increased by 1300% and during the past fifty-two weeks, the price has risen as high as $457.30 and fallen to a low of $68.06. In 2020, TWLO’s stock has gained more than 250%.

Technically the overall momentum remains bullish throughout the last couple of weeks. The stock closed on Thursday at $443.49. In the short term if the stock holds above $400 the next upside target at $480 and $500. On the other side, if the price break and close below $400, the next immediate support to watch $350 and then $330.


Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more- https://gulfbrokers.com/en/twilio-shares-jumps-another-10-can-the-rally-last
 
The pair plunged to a fresh year low of 0.8640. If the price won't break below 0.8600 we may see a pullback to 0.8690 then 0.8720. On the other side break below 0.8630, the next level to watch 0.8600/0.8580.

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The Social media platform Pinterest was founded in 2003 and it went public in April 2019. It began its first day of trading up 25% at $23.75. The platform allows users to “pin” posts to digital “boards” on topics of interest. Pinterest (NYSE: PINS) stock has a market capitalisation of US$52 billion and the company's price-to-book ratio stands at 23.7%. Recently, the stock climbed to fresh all-time highs after blowout Q4 financial results.

Fundamental Analysis of PINS​

Pinterest has beat expectations on the last three earnings reports. On February 4th Pinterest released the Q4 financial results. The results showed revenue growth accelerating, with 76% year-on-year growth in the fourth quarter to $706 million. The number of monthly active users jumped to 459 million vs. 449.4 million expected.

  • Earnings per share (EPS) $0.43 vs. $0.32 expected
  • Revenue $706 Million vs. $645.6 Million expected
“We welcomed over 100 million additional monthly active users to Pinterest in 2020, more than any other year in our history, and now we reach more than 450 million monthly active users around the world.” Pinterest CEO, Ben Silbermann said.

Should you buy the Pinterest stock now?​

ocado


The investors and traders are certainly impressed with the progress Pinterest stock has made over the last year. Since going public at $19 per share, PINS has risen more than 200%. Technically the overall momentum remained bullish for the $PINS throughout this year and the stock is up 32% so far in 2021. In the long term, watch for monthly closing above $90 or below $70 area, that will give a larger confirmation of direction in the long term.

Facebook vs Pinterest​

Facebook is much larger, and Pinterest may never reach that scale, but the comparison shows the potential. Most importantly the active user’s growth and lack of controversy are helping the Pinterest stock to continue the upside momentum. As per the last quarter results, Facebook’s monthly active users are up 14% versus 37% for Pinterest. Recently, the Facebook stock performance also faced some controversy problems including Apple's privacy change, the Democrats' Senate takeover and Trump's suspension.

Conclusion​

Though the Pinterest stock has demonstrated good financial results, and user’s growth it also faces competition from other social media companies like Snap, Facebook, and Twitter. Competition is one of the many factors that can affect a company’s stock performance.

If Pinterest can continue to find new and improved ways to monetize its user base, this will go a long way towards helping the company’s future profitability. On the other hand, if the company is able to provide more positive earnings reports will also help to boost investor confidence and increase the upside momentum.

Read more- https://gulfbrokers.com/en/can-pinterest-pins-stock-become-the-next-facebook-fb
 
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US stock futures climbed to fresh session highs on Monday. During the last week, the US indices touched a record high levels, the Dow gained nearly 4% while the S&P 500 and the NASDAQ both added more than 2%.

EQUITIES

Chinese shares traded lower on Monday despite better-than-expected retail sales and industrial production data. On the other hand, European stocks opened higher on Monday boosted by the upbeat market sentiment triggered by the passage of the latest U.S. stimulus measures.

OIL

Crude oil price trading higher in hopes for a recovery in the fuel demand after the passing of a massive stimulus package and output cuts from major producers.

CURRENCIES

In the currency market, the Australian dollar slipped during the Asian session following the bearish comments from RBA Governor Lowe’s comments. The governor said that the central bank will maintain policy support until employment and inflation goals are met.

GOLD

The safe-haven metal trading steady above $1720 on Monday ahead of the US Federal Reserve Monetary Policy Meeting later in the week.

Economic Outlook

On the data front, china Retail sales increased 33.8% from a year earlier in the first two months, compared with a rise of 32% expected by analysts. Meanwhile, Industrial production climbed 35.1% year-on-year in January to February period, faster than the 7.3% growth seen in December.

This week the main highlights of the economic calendar will be the US, UK and Japan central banks meeting, US retail sales and oil Inventory data.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 119.8 million. World Health Organisation Director-General Tedros Adhanom Ghebreyesus recently said, "The situation is deeply concerning and the measures that should be taken should be as serious as possible."

Technical Outlook

USD/JPY:
The currency pair surged to a fresh year high of 109.35 on Monday. If the bullish momentum continues the next upside levels to watch 109.60 and 109.80/110. On the flip side, the immediate support at 108.80/60.

euraud


The important levels to watch for today: Support- 108.80 and 108.60 Resistance- 109.60 and 110.

GOLD: The precious metal slightly retreated from the early session highs. At the time of writing, the metal trading above $1725.

gold neww


The important levels to watch for today: Support- 1720 and 1707 Resistance- 1734 and 1742.

Quote of the day: Look at market fluctuations as your friend rather than your money; profit from folly rather than participate in it – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-264
 
A busy week ahead as investors keep an eye on the FOMC, BOE and BOJ meetings.

US earnings to watch: Nike and FedEx.

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