• Big tech reports mixed results
• Daily COVID-19 cases reached new high
• Twitter (TWTR.US) stock plunged on weak user growth
• Daily COVID-19 cases reached new high
• Twitter (TWTR.US) stock plunged on weak user growth
US indices opened lower on Friday amid fresh concerns about the health of the tech sector after quarterly results for some big companies disappointed. Meanwhile, the US reported record number of 91 530 COVID-19 infections on Thursday. The seven-day average of new coronavirus cases in the U.S. hit an all-time high this week, according to data from Johns Hopkins University. On the data front The MNI Chicago Business Barometer in the US fell to 61.1 in October of 2020 from 62.4 in September which was the highest since February of 2009. The personal consumption expenditure price index rose 0.2% in September 2020, following a 0.3% gain in August. Personal spending increased 1.4 % in September of 2020, following a 1.0% rise in August and above market forecasts of 1.0 %. University of Michigan consumer sentiment was revised higher to 81.8 in October, above market expectations of 81.2. The Dow Jones is trading 0.47% lower, S&P 500 dipped 0.5% and the Nasdaq Composite pulled back 0ver 1.0%.
US30 – index bounced off the major support level at 26077 pts which is additionally strengthened by 200 SMA (redline). As long as the price stays above it, continuation of upward correction move is possible. However, if sellers will manage to break below it, then downward move could be extended to the 24820pts handle. Source: xStation5Twitter (TWTR.US) stock plunged more than 15% after the social media company reported weaker than expected user growth. Twitter said number of its monetizable daily active users rose only by 1 million and totaled 187 million, compared to market expectations of 195 million. Twitter reported Q3 EPS of $0.19 (exp. $0.06) and revenue at $936 million (exp. $777 million).
Twitter (TWTR.US) launched today’s session with a bearish price gap and is currently testing major support at $44.42 which is additionally strengthened by 200 SMA (red line)and the upward trendline. In case the current sentiment prevails, stock may move towards the $38.10 level. However in case buyers manage to regain control, then the nearest resistance lies at $48.75. Source: xStation5Alphabet (GOOGL.US) stock jumped 10% in extended trading after the Google parent company posted better than expected quarterly results. The company earned $16.40 per share and reported revenue of $46.17. Analysts expected $11.29 in earnings per share and $42.90 billion revenue.
Exxon Mobil (XOM.US) reported quarterly loss of 18 cents per share, smaller than the 25 cents a share loss that analysts were expecting. Revenue beat market expectations. Exxon is also planning smaller capital expenditures for 2021, to $16 billion to $19 billion, from $23 billion this year.
Amazon (AMZN.US) shares dropped over 1% after the market close despite the fact that company reported strong quarterly figures. E-commerce giant earned $12.37 per share, compared to $7.41 expected by the analysts'. Company's revenue of $96.15 billion, beat market $92.7 billion expected.
Facebook (FB.US) stock rose more than 1% after the closing bell as company's third-quarter results came in above market forecasts. Social media giant reported earnings of $2.71 per share and revenue of $21.47 billion while analysts expected earnings of $1.91 and $19.8 billion in revenue. Facebook reported a decrease in users in the U.S. and Canada.
Apple (AAPL.US) fell more than 4% in extended trading after the tech giant reported slightly better than expected quarterly results. Company earned $0.73 per share while analysts expected earnings of $0.70 per share. Revenue also came in above expectations. However iPhone sales declined over 20% year-over-year and company did not provide any guidance for the current quarter.
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