- US stocks opened higher
- Labour costs eased in December
- Caterpillar (CAT.US) stock fell despite upbeat quarterly results
US indices resumed downward move on Friday as investors digested fresh economic data and mixed earnings reports. Monthly PCE inflation came in line with market estimates, while labor costs fell in Q4, temporarily easing some concerns of a tighter monetary policy from the Fed. On the corporate front, Apple jumped 3% after the company reported record revenues and said it expects supply chain constraints, which are contributing to inflation, to ease in the coming months. So far on the week, the Dow Jones fell 0.3% which would mark a 4th weekly decline. The S&P 500 dropped over 1.5%, also a 4th weekly fall and the Nasdaq lost 1.4%, a 5th week of declines.
US100 failed to uphold recent bullish momentum and resumed downward move again broke below key support at 14000 pts. If current sentiment prevails, downward move may accelerate towards next support at 12880 pts which is marked with 38.2% Fibonacci retracement of the upward wave launched in March 2020 pts.
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Caterpillar (CAT.US) stock fell over 1% in premarket despite equipment producer posted strong quarterly results. Company earned an adjusted $2.69 per share well above analysts’ estimates of $2.26. Revenue also beat market estimates as sales increased 23% compared to last year despite supply chain constraints. However, increased costs negatively affected profit margins.
Caterpillar (CAT.US) stock launched today's session lower below major support at $209.20 which is marked with lower limit of the 1:1 structure, 50 SMA (green line) and 23.6% Fibonacci retracement of the upward wave launched in March 2020. If current sentiment prevails, downward move may accelerate towards the lower limit of the wedge formation. Source: xStation5
Visa (V.US) stock rose over 3% in premarket after the payment provider topped quarterly profit estimates as more international travel and e-commerce drove an increase in spending volumes.
Robinhood (HOOD.US) shares plunged over 13% after the online investing platform posted a bigger than expected loss in Q4, namely 49 cents per share, 4 cents wider than estimates, due to declining number of monthly active users and weak revenue outlook for the current quarter.
Chevron (CVX.US) stock fell nearly 3.0% in the premarket after the oil giant posted mixed quarterly figures. Company earned an adjusted $2.56 per share, well below Wall Street estimates of $3.12, despite higher oil and gas prices. On the other hand, revenue exceeded analyst forecasts.
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