The last session of the week is extremely interesting. On the one hand, the surprising reading of NFP, and on the other hand, the rotation on the shares of the largest companies in the USA. Trading started with declines, which are now being challenged. Stocks reacted pessimistically to the NFP reading, which showed a significant increase in employment. This turn of events indicates the direction in which the FED will go in the further creation of the US economic policy. Bond yields also reacted strongly to the reading, climbing sharply.
US100 chart, interval D1. The index of technology companies started the last session of this week with declines, which however stopped near the support determined by the abolition of 78.6% Fibo. Local resistance remains the zone of 15 000 points (61.8% retracement, EMA 200 and psychological barrier). Source: xStation 5
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News:
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Today we learned NFP data from the US economy. The January reading showed a huge beat on the anticipated 150k NFP gain,and the actual reading came in at 467k new jobs. The unemployment rate reached 4% vs. the expected 3.9%. The key data in the context of inflation and hike considerations is wages. Here wages are seen rising by 5.7% y/y against expectations of 5.2% y/y and the previous level of 4.7% y/y. The participation rate comes out at 62.2% against an expectation of 61.9% and against a previous level of 61.9%. The data certainly dispels any doubts about the next move by the Fed. Treasury bond yields are moving sharply higher.
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Shares of US giant Amazon (AMZN.US) are up more than 11% ahead of the market open in the face of the company's excellent Q4 2021 report. The company reported quarterly EPS of $5.8 versus Kosnesus' expectations of $3.57. However, it is worth noting that a clear portion of the reported profit was due to the valuation of Amazon-owned Rivian Automotive (RIVN.US).
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Snap's (SNAP.US) stock valuation shot up by a whopping 46% at the open of the Wall Street session after the company reported sensational quarterly results. Current EPS beat consensus by more than 100%. A promising outlook is also helping.
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Ford (F.US) is losing in the opening of today's trading session following the release of weak financial results that fell short of analysts' expectations. However, the company released strong guidance for 2022. Also supporting is the 11% stake in the previously mentioned Rivian Automotive.
The shares of the leading carmaker Ford Motor (F.US) have fallen below the strategic support provided by early reactions from the demand side. Currently, declines are accelerating and are heading towards the 61.8% retracement (USD 17.5 per share). Interval D1. Source: xStation 5
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