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US indices set to open over 1% higher today
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Tesla (TSLA.US) set to open near $900 handle
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Earnings report from Alphabet (GOOGL.US) disappoints
US stock market futures point to a green open with S&P 500 jumping over 1% at the session launch. Tesla is surging at a double-digit pace in pre-session trading and, thanks to this, NYSE FANG+ index (USFANG) is set to open over 3% higher. Two non-market events to watch today are Iowa caucus results and Trump’s State of the Union address.
Iowa caucus results and Trump’s State of the Union speech
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Create account Try a demo Download mobile app Download mobile appWhen it comes to the United States, two things will be on the watch today. Firstly, investors await the release of Iowa’s democratic caucus results. Release has been delayed due to reporting inconsistencies. Iowa is the first state to vote on who will be Democratic nominee for 2020 presidential elections. Secondly, the incumbent US president, Donald Trump, will deliver the annual State of the Union address tonight (Wednesday, 2:00 am GMT). The address often touches on the topic of economy and it could be double important during an election year.
Major Wall Street indices managed to halt declines and are recovering this week. Dow Jones (US30) is set to launch today’s cash session almost 1.2% higher. The index is testing mix of key resistances - 200-hour moving average (purple line), 50% Fibo level of the upward move started on January 8 as well as the zone marked by previous price reactions. Clearing this hurdle would pave the way towards the next resistance in line - 38.2% Fibo level at 28875 pts. Source: xStation5
Alphabet (GOOGL.US) reported Q4 earnings yesterday after the session closed. Google parent reported revenue of $46.075 billion (+17.3% YoY) amid adjusted EPS of $14.37 (+36% YoY). Net income jumped 34.7% YoY to $9.99 billion. The results came in weaker than the markets expected with ad revenue growth continuing to slow. Investors were especially disappointed with YouTube ad sales as those grew 36% YoY and reached $15.1 billion in full-2019. It was the first time Alphabet released detailed data on YouTube sales and markets expected it to account for a bigger share of company’s revenue. Alphabet saw weaker ad sales growth than Facebook or Amazon in a key holiday quarter.
Tesla (TSLA.US) climbs at a double-digit pace in pre-market trading. The US electric vehicle manufacturer closed 20% higher yesterday being fuelled by analysts’ upgrades and adds to those gains today. The stock breached $900 handle for a brief moment in a pre-session trading.
Alphabet (GOOGL.US) is testing the price zone ranging near the all-time high ($1485 area). A point to note is that 161.8% exterior retracement of the late-2018 downward move props up this area. Having said that it could be the major resistance to watch over the coming days. However, the stock is set to open around 3% lower today. Source: xStation5
McKesson (MCK.US), the major US healthcare company, reported earnings for Q4 2019 ahead of the opening bell. Adjusted EPS of $3.81 was 9.2% higher than expected and 12% YoY higher. Revenue reached $59.17 billion and was slightly weaker than median estimate of $59.40 billion. Nevertheless, it was still 5.3% YoY higher. The company reaffirmed full-year EPS guidance for fiscal 2020 (ends on 31 March 2020) at $14.60-14.80.
ConocoPhillips (COP.US), the US oil major, also reported Q4 earnings today. Adjusted EPS for the final quarter of 2019 came in at $0.76 - weaker than expected $0.80 and last year’s $1.13. Average total realized price on a barrel of oil equivalent dropped 11% YoY to $47.01. Production, excluding Libya, stood at 1.289 million barrels of oil equivalent per day. Operating cash flow suffered on lower oil price and dropped 22% YoY, to $2.98 billion. ConocoPhillips decided to boost its share buyback programme by $10 billion, to a total of $25 billion.
McKesson (MCK.US) has been trading in an upward channel since the end of Q3 2019. The stock has turned lower in mid-January and declined towards the lower limit of the channel. The stock bounced higher yesterday and in case the move is continued today, the upper limit of the Overbalance structure at $146.50 could come into play. Source: xStation5
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