- MAG7 and FOMC move the markets
- Powell warned the markets that December cut is not certain despite deteriorating economic situation
- Meta suffers double-digit decline despite beating expectations due to unexpected loses
- Microsoft drivers results but over-invests
- Alphabet exceeded growth in nearly all fields
- MAG7 and FOMC move the markets
- Powell warned the markets that December cut is not certain despite deteriorating economic situation
- Meta suffers double-digit decline despite beating expectations due to unexpected loses
- Microsoft drivers results but over-invests
- Alphabet exceeded growth in nearly all fields
Sentiment on the main indices in the United States is mixed today. Investors are digesting the FED's decisions and fresh results from tech companies, while waiting for Apple and Amazon's releases after the session ends. In the background, the extension of the tariff truce between the United States and China during Donald Trump's Asian visit is supporting improved sentiment. Mainly, contracts on the tech index are losing, with US100 down 0.4%, US500 remaining around the opening level. US30 and US2000 are performing better, with increases of 0.3% and 0.8%, respectively.
The market situation is complex, with FOMC and MAG7 creating uneven quotations on Wall Street. Alphabet reported better-than-expected revenue and profit for the third quarter, leading to strong post-session trading gains. Microsoft presented good results, but the sales ranges provided for the next quarter met with a cool market reaction. Meta improved its results and raised its investment spending plan, but the company's stock collapsed after the publication. The market is still waiting for remianing earnings publications.
Macroeconomic Data:
Federal Reserve Chairman Jerome Powell's comments after yesterday's decision are cooling expectations for a December rate cut. The central bank chief assessed that inflation remains somewhat elevated, and the process of slowing price dynamics in services is ongoing. He also pointed to a clear weakening of labor demand with still low layoffs, but also recruitments. He emphasized that the suspension of government work burdens activity, but this effect should reverse after the end. The dollar has strengthened significantly, and stock indices have slipped, which translates into a more cautious sentiment today and greater sensitivity of valuations to incoming results.
Data on gas inventories in the USA were also published, which turned out to be higher than expected at 71 Bcf, ultimately amounting to 74 Bcf, although it is still a clear decline from 87 Bcf from the previous period.
US100 (D1)
Source: xStation5
The price on the chart bounced off the upper limit of the growth channel, falling to around 26,060 dollars. The base scenario is a return to around 25,300 dollars, where the support zone marked by the peaks of the last consolidation is located. After normalizing the RSI indicator, the index may resume its upward trend if it does not fall below 25,100.
Company News:
Meta (META.US) - The company showed results above analyst consensus, but what broke investor sentiment was a huge, one-time tax loss of over 15 billion dollars. The stock collapsed in post-session trading by as much as 9%, and at the opening, the company is losing as much as 12%.
Microsoft (MSFT.US) - The company's results exceeded expectations both in terms of revenue and earnings per share. Growth in the cloud segment reached 40%. However, the company declared that it would further increase capital expenditures on infrastructure investments, which worried investors. The company is losing over 2% at the opening.
Alphabet (GOOGL.US) - The company's revenue amounted to 120.3 billion against expected 99.6 billion, and earnings per share were $2.87 compared to expected $2.33. The company exceeded investor expectations in all sectors of activity, with particular growth in the cloud segment. The company's stock is rising by over 4% at the opening.
Chipotle Mexican Grill (CMG.US) - The company fell by over -18% after lowering its full-year sales forecast for the third time this year.
eBay (EBAY.US) - The company fell by over -15% after forecasting adjusted earnings per share below the consensus of $5.46.
FMC Corp (FMC.US) - The fertilizer producer is losing as much as 38% in price after lowering its full-year adjusted earnings per share (EPS) forecast to $2.92 from a previous forecast of $3.26, significantly below the consensus of $3.47.
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