- US stock open higher
- US GDP unexpectedly contracts in Q1
- Meta Platforms (FB.US) stock surges on upbeat quarterly results
US indices launched today’s session higher as slew of upbeat corporate earnings overshadowed weak GDP reading. The US economy shrank 1.4% during Q1, compared with analyst forecasts of a 1.1% expansion.The yield on the 10-year US Treasury note resumed upward move and reached 2.85% level with investors pricing chances of an increasingly hawkish Federal Reserve stance. Another two FAANG members -Apple and Amazon will reveal their quarterly figures after the market close.
US2000 attempted to move higher early in the session however the upward move turned out to be short-lived and index returned to key support at 1884 pts which is marked with previous price reactions and lower limit of the 1:1 structure. A decisive close below this level would be a confirmation that bears remain in control and could herald further downward pressure. On the other hand, if buyers manage to regain control then another upward impulse towards local resistance at 1923 pts may be launched. Source: xStation5
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Meta Platforms (FB.US) stock surged over 14.0% in premarket after the owner of Facebook reported Q1 revenue at $27.91 billion (exp. $28.2 billion) and EPS at $2.72 (exp. $2.56). Number of daily active users beat expectations slightly but the number of monthly active users disappointed. It seems that investors already priced in slowing revenue growth and a big loss on developing ‘Metaverse’ themed products.
Meta Platforms (FB.US) stock has been moving in a downward trend since September 2021 and reached its lowest level since April 2020 on Wednesday. However recent quarterly results provided fuel for buyers. Stock launched today’s session with a massive bullish price gap and if current sentiment prevails upward move may accelerate towards resistance at $231.25, which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
McDonald’s (MCD.US) stock rose 2% in premarket after the fast food company reported first quarter revenue of $5.67 billion which beat analysts’ estimates of $5.59 billion. The burger chain recorded same store sales increase of 3.5% in the U.S. while global comparable sales rose 11.8%.
Ford Motor (F.US) stock rose nearly 2.0% after a major US car manufacturer upheld its full-year guidance despite ongoing problems with global supply chains. Company quarterly figures were stamped by a big negative mark-to-market on its stake in Rivian.
PayPal (PYPL.US) stock rose over 3.0% before opening bell after the payment’s company posted upbeat revenue estimates for the first quarter and posted a slight increase in payments volume. This news overshadowed weak guidance for the second quarter and full year.
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