- US indices launched today's cash trading lower
- US100 bounces off key resistance
- NFP well above expectations
- 3 tech behemoths posted weak quarterly figures
- Ford (F.US) plunges on weak earnings
Three major Wall Street indices launched today's session in red, with Dow Jones trading 0.30% lower, while S&P500 and Nasdaq fell 1.0% and 1.7% respectively as the recent NFP report totally surprised on the upside, showing the US economy added 517K jobs and the unemployment rate fell to 3.4% which heightened expectations that FED will keep rates at higher level for longer. Earlier weak earnings from tech giants Apple, Google parent Alphabet, and Amazon.com weighed on market sentiment, prompting investors to reassess the sustainability of the recent market rally. On the other hand, the Nasdaq 100 and the S&P 500 rallied roughly 3.2% and 1.5% on the weekly basis, while the Dow is poised for a flat week.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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Despite massive lay-offs, the US economy created 517 k jobs in December, most since September 2022, potentially due to massive seasonal adjustments. Source: Bloomberg
US100 rose sharply within two last sessions, however latest quarterly figures from Apple, Alphabet and Amazon worsened market sentiment. Index pulled back sharply from the key resistance zone around 13000 pts, which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits below the aforementioned resistance, another downward wave may be launched towards key support at 12000 pts. Source: xStation5
Company news:
Ford (F.US) stock fell over 8.0% in premarket after the iconic automaker posted adjusted earnings per share of 51 cents on $41.8 billion in revenue while analysts expected adjusted earnings per share of 62 cents and $40.37 billion in revenue. Net income was over $1 billion lower compared to last year.
Highlights of Ford quarterly results. Revenue decline in China stands out. Source: Alpha Street
Ford (F.US) stock rose over 30.0% since the end of December 2022, however upward halted around major resistance at $14.60, which is marked with previous price reactions. Fresh quarterly figures provide fuel for sellers and stock launched today's session with a bearish price gap. If current sentiment prevails, sell-off may deepen towards support at $12.55, which coincides with 61.85 Fibonacci retracement of the upward move started in March 2020, earlier broken downward trendline and 200 SMA (red line). Source: xStation5
Shares of three mega-tech companies - Alphabet (GOOGL.US), Amazon (AMZN.US) and Apple (AAPL.US) fell between 3% and 5% in premarket after heavyweights posted disappointing quarterly results.
Starbucks (SBUX.US) shares lost over 2.0% in premarket after the coffee chain reported weak quarterly figures. Company earned 75 cents per share slightly below analysts’ estimates of 77 cents. Revenue of $8.71 billion came in below Refinitiv projections of $8.78 billion due to dwindling demand especially in China, which is the second-largest market.
Qualcomm (QCOM.US) stock dropped nearly 3.0% before the opening bell after the semiconductor group announced that revenue fell 12% YoY during the recent quarter due to worsening macroeconomic conditions and higher channel inventory.
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