Daily Market Report by GulfBrokers 2020-2021

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Stocks and Oil prices started the week on a bullish note following the last week sell-off.

Moving ahead there are other few key events and notable earnings to watch
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American biopharmaceutical giants Pfizer (NYSE: PFE) and Amgen (NASDAQ: AMGN) reported mixed fourth-quarter financial results on Tuesday. Amgen Q4 earnings and revenue exceeded Wall Street estimates while Pfizer earnings miss alongside better-than-expected revenue.

Among major Pharma companies reporting quarterly results this week including:

AbbVie (NYSE: ABBV) - before the markets open on Wednesday

Biogen (NASDAQ: BIIB) - before the markets open on Wednesday

Bristol-Myers Squibb (NYSE: BMY) - before the markets open on Thursday

Merck & Co (NYSE: MRK) - before the markets open on Thursday

Gilead Sciences (NASDAQ: GILD) - after market close on Thursday

Regeneron Pharmaceuticals (NASDAQ: REGN) - before the markets open on Friday

EQUITIES

US futures trading steady on Wednesday boosted by strong Q4 financial results from Amazon and Alphabet. While Chinese shares traded lower following weaker-than-expected PMI data.

On the US earnings front, Biogen (NASDAQ: BIIB), AbbVie (NYSE: ABBV) and Spotify (NYSE: SPOT) reporting earnings today before the bell while PayPal (NASDAQ: PYPL), eBay (NASDAQ: EBAY) and QUALCOMM (NASDAQ: QCOM) is scheduled to report results after the market close.

OIL

Crude oil price trading strong on Wednesday supported by better-than-expected API inventory data and renewed hopes for US Biden's proposed 1.9 trillion stimulus plans. Meanwhile, Saudi Arabia set to implement a unilateral production cut of 1 million barrels a day starting in February.

CURRENCIES

In the currency market, the commodity currencies both the Australian dollar and New Zealand dollar climbed to a fresh session high during the Asian session after Crude oil prices advanced for the third consecutive day.

GOLD

The gold price remained under pressure after the US dollar gained bullish momentum. Overall, the metal momentum remained bearish throughout this week.

Economic Outlook

On the data front, New Zealand unemployment rate dropped back to 4.9%, down from 5.3%, much better than the expectation of 5.6%. On the other hand, China Caixin PMI Services dropped to 52.0 in January, down from 56.3, missed expectation of 55.5.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 13.15

US – ISM services PMI: GMT – 15.00

US – EIA crude inventories: GMT – 15.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 103.6 million. The United States has confirmed over 26.3 million cases and has had more than 444,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading unchanged on Wednesday. If the bearish momentum continues the next downside levels to watch today 1.2000 and 1.1980.

eurusd


The important levels to watch for today: Support- 1.2000 and 1.1980 Resistance- 1.2070 and 1.2100.

GOLD: The precious metal trading near the $1830 crucial support area, any break below $1830 will open the doors to $1820 and $1816.

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The important levels to watch for today: Support- 1830 and 1816 Resistance- 1846 and 1856.

Quote of the day: All the math you need in the stock market you get in the fourth grade – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-252
 
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Google's parent company Alphabet (NASDAQ: GOOGL) has released its fourth-quarter financial results on Tuesday after the market close. The internet search leader reported $46.2 billion in revenue and $11.2 billion in net income in the last quarter. Alphabet shares jumped more than 7% to $2,066 in the extended trading session and climbed to above $2000 mark for the first time.

  • Earnings per share (EPS) $22.30 vs. $15.90 expected
  • Revenue $56.9 Billion vs. $53 Billion expected
"Our strong results in the last quarter reflect the usefulness of our products and services to individuals and businesses, as well as the accelerated transition to online services and the cloud," said Alphabet CEO Sundar Pichai.

The strong results boosted by the increase in teleworking and life in the computing cloud due to the coronavirus. Cloud sales were $13.1 billion for the full year, up 46% from 2019. Recently Google has announced an important agreement with Ford for the cars of this manufacturer to use Google Cloud as a method to interconnect.

On the other hand, Google collected $ 46 billion in advertising revenue compare to $ 37.93 billion in Q4 2019, including nearly $ 6.9 billion generated on the YouTube advertising revenue.

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Alphabet shares have climbed almost 10% since the beginning of the year and the stock has risen over 80% since March 2020 low.

Read more- https://gulfbrokers.com/en/google-parent-alphabet-stock-cracks-2000-mark
 
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Today, all eyes will be on the BOE interest rate decision, alongside the release of the Monetary Policy Committee meeting minutes and the quarterly Monetary Policy Report. The market participants expect the central bank to keep its interest rate unchanged near zero. Meanwhile, on January, the BOE Governor Andrew Bailey said it was too soon to consider cutting interest rates, even if it were an option worth considering over coming months

EQUITIES

Wall Street ended higher on Wednesday supported by better-than-expected US economic data and robust Q4 earnings results.

On the US earnings front, Clorox (NYSE: CLX) and Merck & Co (NYSE: MRK) reporting earnings today before the bell while Pinterest (NYSE: PINS), Snap (NYSE: SNAP), Ford (NYSE: F) and Gilead Sciences (NASDAQ: GILD) is scheduled to report results after the market close.

OIL

Crude oil price trading steady. On Wednesday, the oil prices received additional support after the EIA report revealed a decline in crude stockpiles in the US by 994k barrels to 475.7 million barrels during the past week. Earlier this week, the API data showed the U.S. crude oil inventories fell by 4.3 million barrels in the week to Jan. 29.

CURRENCIES

In the currency market, the US dollar index rose to its highest level in more than nine weeks on Thursday while the EURUSD fell below 1.20 during the European session, its lowest level in 2021. On the other hand, the British pound trading lower ahead of the Bank of England interest rate decision.

GOLD

The gold price hits fresh weekly low on Thursday, the past 4 trading sessions have been a tough time for gold buyers.

Economic Outlook

On the data front, the US released the ADP employment report. The data showed the private sector added 174,000 jobs in January, against the expected 48K. The ISM Services numbers also came in higher, at 58.7, compared to the forecast of 56.7.

On the stimulus front, US President Joe Biden on Wednesday said he expects "some" Republican support for his huge new Covid-19 economic relief package.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 12.00

US – Jobless claims: GMT – 13.30

US – Factory orders: GMT – 15.00


Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 104.1 million. The United States has confirmed over 26.4 million cases and has had more than 448,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair continuously trading weaker on Wednesday. At the time of writing, Euro trading below the psychological support area 1.20.

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The important levels to watch for today: Support- 1.1980 and 1.1940 Resistance- 1.2040 and 1.2080.

GOLD: The precious metal slightly rebounded from the key support area $1814. At the time of writing, the safe-haven trading above $1818.

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The important levels to watch for today: Support- 1815 and 1806 Resistance- 1830 and 1836.

Quote of the day: The fundamental law of investing is the uncertainty of the future- Peter Bernstein.

Read more- https://gulfbrokers.com/en/daily-market-report-253
 
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Payment and E-commerce giant’s Paypal (NASDAQ: PYPL) and eBay (NASDAQ: EBAY) reported better-than-expected fourth-quarter financial results on Wednesday 03rd February after the market close. Both the company stocks hit a new 52-week high on Thursday.

PayPal (NASDAQ: PYPL) announced strong fourth-quarter revenue results supported by Bitcoin and Crypto Service and the company still expects to grow revenue at about 20% in 2021. During the last quarter, the company gained 16 million in net new active accounts and handled $277 billion in total payment volume.

  • Earnings per share (EPS) $1.08 vs. $1.00 expected
  • Revenue $6.12 billion vs. $6.08 billion expected
“The volume of crypto traded on our platform greatly exceeded our projections. We’re excited to build on this early success by allowing customers to use their crypto balance as a funding source. We hope to launch our first international market in the next several months.” PayPal, CEO Dan Schulman said.

PayPal added support for cryptocurrencies in October 2020, allowing its 286 million active users to access top cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum and Litecoin. The company currently has about 29 million merchants globally, all of which will be able to accept cryptocurrencies as payments for their goods and services.

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On Thursday, the PayPal shares reached a fresh yearly high of $274.94 and closed 7.36% higher at $270.43.


E-commerce firm eBay (NASDAQ: EBAY) fourth-quarter financial results exceeded Wall Street estimates boosted by huge e-commerce demand.

  • Earnings per share (EPS) $0.86 vs. $0.83 expected
  • Revenue $2.87 billion vs. $2.70 billion expected
“We finished the year with strong financial results. We will continue to invest in product and technology in order to deliver the best marketplace in the world for our customers“ eBay CEO Jamie Iannone said.

In the first quarter, the company expects to post EPS of between 81 cents and 86 cents on revenue ranging from $2.94 billion to $2.99 billion.

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The company’s stock is up more than 55% over the last year. The stock increased more than 10% in pre-market trading on Thursday and climbed to a new all-time high of $64.85 following strong Q4 results.

Read more- https://gulfbrokers.com/en/paypal-and-ebay-shares-hits-new-all-time-high-on-profit-beat
 
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The US dollar outperformed all major currencies this week and climbed to a fresh year high ahead of NFP report, due later during the early North American session. The consensus is for an increase of 50k non-farm payroll jobs, and for the unemployment rate is expected to remain unchanged at 6.7%. In December, the total Non-Farm payroll employment decreased by 140k and the unemployment rate remained unchanged at 6.7%.

EQUITIES

US indices futures rose to a fresh session high on Friday supported by upbeat Q4 earnings results and strong US macro-economic data including ADP employment report and ISM manufacturing data.

OIL

Crude oil price bullish rally continues on Friday lifted by OPEC+ extended its current oil output policy. The oil prices also received additional support by better-than-expected EIA and API inventory data.

CURRENCIES

In the currency market, the British pound hovers near the 1.3700 level ahead of Bank of England governor Andrew Bailey speech. The pound trading strong from the previous session after the BOE decided not to change the parameters of monetary policy and keep the key interest rate at 0.10%.

GOLD


Gold price slightly reversed from the previous session lows and trading above $1800 during the European session. Overall, the momentum remained bearish throughout this week.

Economic Outlook

On the data front, the US Initial jobless claims for the past week came in at 779,000, better than the expected 830,000 and better than the previous week’s 812,000. On the other hand, on Friday during the

Asian session the Australian Bureau of Statistics released the retail sales data. The data showed the retail sales were down a seasonally adjusted 4.1% on month in December.

Moving ahead today, the important events to watch:

US – Nonfarm payrolls: GMT – 13.30

CANADA – Employment report: GMT – 13.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 104.8 million and more than 2.28 million deaths have been recorded. The United States has confirmed over 26.6 million cases and has had more than 453,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index:
The Index trading steady above 91.30 ahead of NFP data, during the Asian session the pair hit a fresh year high of 91.57.

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The important levels to watch for today: Support- 91.30 and 90.90 Resistance- 91.60 and 91.90.

GOLD: The precious metal trading extra volatile ahead of US job data. At the time of writing, the metal trades above $1805.

gold neww


The important levels to watch for today: Support- 1795 and 1780 Resistance- 1814 and 1824.

Quote of the day: Investing is fun and exciting, but dangerous if you don’t do any work – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-254
 
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