FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Dow Jones and S&P 500: Market Breadth


3 May 2022

The US and European stock futures are trading in a mix today as investors continue to digest US earnings and the geopolitical landscape. Amazon: The retail giant failed to impress Wall Street in its quarterly report last night. It reported earnings of $7.38 per share, adjusted against the expectations of $8.36. Its revenue came in at 116 billion versus $11. billion expected.

The share price plunged as much as 10% in the extended trading hours as the company’s reported that its growth rate is at its lowest since the dot-com bust in 2001. It also posted an eye-watering loss of $7.6 billion on its investment in electric vehicle maker Rivian. 

Apple: The iPhone maker posted impressive revenue growth of 8% year over year. It’s earnings per share was $1.52 vs. estimates of $1.43, and revenue came in at $97.28 billion against the expectations of 93.89 billion. The iPhone revenue numbers were $19.82, while the estimate was 19.72 billion. However, the company’s stock traded lower and declined over 4% in the after-market hours as the company warned about supply chain challenges that could hurt its sales figures by $8 billion.   

Twitter: Elon Musk has sold around $4 billion in Tesla stock as part of his pursuit of the $44 billion Twitter purchase. He stated on Twitter that he had “no additional Tesla sales planned.” According to sources close to Musk, when negotiating funds, he raised the possibility of eliminating both employees and expenditures at Twitter. Twitter has fallen further below the offer price as investors are concerned about the financing strategy. Tesla dropped following the market.

China’s Zero Tolerance 

China will not budge on its Covid Zero policy, and in fact, officials must work more strongly and quickly to purchase time to immunize more people, according to a top health official. According to Liang Wannian of the National Health Commission, the program does not guarantee zero illnesses, and not all cities would need to be quarantined. If restrictions are lifted, the medical system will be overburdened for the time being.

Forex 

In the forex market, all eyes remain on the dollar index. The index retraced from its highs yesterday on the back of the US GDP data, which confirmed a lot more weakness than expectations. Traders need to keep a close eye on the USD/JPY pair, which touched the price level of 130, and speculators believe that it is only a matter of time before it reaches the price mark of 150. 

The EUR/USD is also an interesting forex pair as it fell below the 1.06 price level and currently trading near 1.0552. There is no doubt that the ECB wants to bring its monetary policy back to its normal level, and a rate hike is expected this year. However, for now, it is more about the dollar strength. 

The Bank of Russia is expected to slash rates again, this time by 200 basis points to 15%. From the outside, it appears that, despite the sanctions, the central bank has restored stability. However, capital constraints have enabled the shift, which underlines the necessity to sustain a shattered economy. 

Asian Markets 

The Asian stock market traded mostly higher on the final trading day of the week. The Nikkei index increased 1.75%. The Shanghai index dropped by 1.10%, while the HSI index fell by 4.17%. The ASX index increased by 0.73%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth gained a bit more momentum during the last session. 46% of the Dow Jones stocks traded above their 200-day moving average. The S&P 500 stock breadth also confirmed an improvement in its momentum. 44% of the shares traded above their 200-day moving average. 

Dow Jones Futures Today

The Dow Jones futures are trading modestly higher today. In terms of economic data, investors will be looking at the US Core PCE Price Index and Revised UoM Consumer Sentiment. The Core PCE index data will be hitting the terminal at 12:30 GMT, and the forecast is 0.3%, while the previous reading was at 0.4%. As for the Revised UoM Consumer Sentiment, it is expected to be released at 14:00 GMT, and the forecast is for 65.8

The Dow Jones futures have logged three consecutive days of gains, but the price continues to trade below the three important moving averages, which are 50, 100, and 200-day SMA. This shows that bears on the driving seat and fully control the price. Having said that, more recently, the price has come a long way away from its recent lows of 33198, and it is in the process of challenging its 50-day SMA, which is currently at 34118. 

As for the RSI, it is rising and moving away from its oversold region of 30. The current reading of the RSS is 46, which shows that the DJ30 price isn’t rich nor cheap. A level of 30 on the RSI is associated with the price being low, and a level of 70 on the RSI is considered as the price being too rich. The near-term support is at 33,198, while the resistance is at 35,068.   

Stock Market Rally

#source

Share:


Related

The Pound is having tough times
The Pound is having tough times

The Pound Sterling is keeping balance against the USD as much as possible. The current quote for the instrument is 1.0800. The news released yesterday were rather puzzling. The Bank of England announced...

29 Sep 2022

EUR/USD: bears now target 0.9500
EUR/USD: bears now target 0.9500

EUR/USD drops for the seventh straight session and tests 0.9535. Below the 2022 low at 0.9535 comes the 0.9500 region. EUR/USD extends the leg lower to the proximity of 0.9530 earlier on Wednesday...

28 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back in March...

27 Sep 2022

Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.