- Indices open higher after yesterday's heavy declines. The S&P 500 gains 1.0% at the open, while the Nasdaq gains 1.5%
- Marathon Oil and Phillips 66 reported strong results thanks to increased demand for fuels
- The stock market sentiment is supported in anticipation of a possible pivot by the Fed. The dollar is losing its ground, precious metals are gaining
U.S. indices opened higher in the first session of the new month and are trading at their highest since 21st of September. The US500 is set to test 4,000 points today. The upbeat sentiment is driven by earlier gains in Europe and anticipation of a change in rhetoric from the Federal Reserve tomorrow.
The US500 continues a strong rebound that started on Friday and is trading at its highest since September 21. We can notice a slight decline in yields, although it is still too small to indicate that this is already a permanent change in the market perspective. Of course, it is worth remembering that statistically, the US500 had been gaining during the midterm election month. On the other hand, if the Fed stays with its current rhetoric and does not change its stance on further balance sheet reduction, it could mean that the current rebound is another correction in the downtrend.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
Companies news:
- Marathon Oil (MRO.US) and Phillips 66 (PSX.US) were the latest US oil refining companies to release financial results. The companies showed strong results thanks to increased demand for fuel, high margins and limited supply. Marathon Oil earned $7.81 per share with expectations of $7.07 per share. The company boasted a margin of $30.21 per barrel. Phillips 66 earned $6.46 per share with expectations of $5.04 per share. The margin was $26.58 per barrel.
Marathon Oil is slightly up today after a good financial report. On the other hand, it is only a recovery after yesterday's fall caused by Biden's idea about the windfall tax. Source: xStation5
- Uber (UBER.US) released its results before the Wall Street opening bell. Revenues amounted to $8.34 billion, and adjusted profit was $516 million. On the other hand, the company posted a net loss of $1.2 billion due to equity investments. The company points out that after the pandemic, consumers have started using the company's services again in greater numbers.
- AMD (AMD.US) is gaining early in today's session ahead of its earnings release after the market close. The market expects EPS of $0.72, which would represent a 31% decline q/q and a 4% decline y/y. At the same time, the company is expected to report strong revenue growth. The company's shares have lost about 60% this year due to weak expectations for the semiconductor sector.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
