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US markets trade higher ahead of FOMC meeting
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Tech sector supported by upbeat earnings from Microsoft
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Boeing reports $3.5 billion pre-tax charge on Dreamliner in Q4 2021
Major indices from Wall Street launched today's cash trading with big bullish price gaps. S&P 500 and Russell 2000 trade around 1.8% higher while Dow Jones gains 1.2%. Nasdaq is the top performing Wall Street index, trading 2.5% higher. Solid earnings release from Microsoft supports sentiment towards the tech sector. FOMC rate decision in the evening (7:00 pm GMT) is a key point of the US trading session today.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appRussell 2000 (US2000) plunged below the lower limit of the 2,100-2,335 pts trading range last week. Textbook range of the downside breakout from the pattern point to a potential drop to as low as 1,860 pts. However, bears failed to push the price to this area, at least for now. Declines were halted in the 1,950 pts area and the index started to recover along with other major indices from Wall Street. The first big test if upward move continues will come at 2,100 pts - lower limit of the earlier-broken trading range. A return above this hurdle would also mean breaking above the local market geometry thus signalling a potential change in the short-term trend.
Company News
Boeing (BA.US) reported a $4.16 billion net loss in Q4 2021. Adjusted loss per share reached $7.69, while analysts expected a loss per share of $0.42. Revenue reached $14.79 billion, down from $14.79 billion in Q4 2020, and below the median forecast of $16.59 billion. Result was heavily impacted by $3.5 billion pre-tax charge on 787 Dreamliner jets groundings and production issues. On a positive note the company reported a positive free cash flow of $0.5 billion for the quarter while the market expects free cash burn of $1 billion.
AT&T (T.US), US telecommunications company, reported Q4 2021 revenue at $41.0 billion, slightly above $40.47 billion expected. Communications Segment accounted for the biggest share of revenue - $30.2 billion (exp. $29.8 billion) - while WarnerMedia segment ranked second ($9.9 billion vs $9.1 billion expected). Adjusted EPS came in at $0.78, above $0.75 expected by the market. Strong growth during the quarter was driven by the HBO Max unit.
Microsoft (MSFT.US) launched today's cash session 7% higher following the release of better-than-expected earnings. We have released a short analysis of Microsoft's results earlier today.
In spite of reporting massive loss, Boeing (BA.US) launched today's Wall Street session higher. Stock tested $207.00 resistance zone but failed to break above. Stock is making a pullback below the $200.00 mark at press time. The nearest support zone to watch can be found ranging around the $190.00 mark. Source: xStation5
