The start of today's session on Wall Street brings moderate gains in most stock indices. The US100 index of technology companies rises after excellent results from Alphabet (GOOGL.US). The US500 index is recording its fourth day of gains after investors bought into oversold technology companies. Today's ADP data surprised analyst consensus, reporting a decline in jobs. The US announced that it will send 3,000 troops in the wake of the escalation between Russia and Ukraine.
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US100 price chart, D1 interval. The index of technology companies managed to break above the 200-period exponential moving average (gold line) and is now struggling to overcome the barrier formed by the 50% Fibo retracement. The nearest support remains the area near 15,000 points, which is reinforced by the 61.8% retracement and the previously mentioned exponential moving average. Source: xStation 5
News:
Shares of technology giant Alphabet (GOOGL.US) are rallying ahead of the start of the US session, and if the current upward momentum is sustained, the company's stock price will reach its all-time high and return above its market capitalization of $2 trillion. As a reminder, yesterday after the close of the Wall Street session, the company reported big better-than-expected Q4 financial results. Additionally, the company communicated a 20-to-1 stock split.
As expected, Alphabet shares started today's trading with a gigantic upward gap, whose range rose above the historical maximums. Currently, a rebounding movement is underway, which, however, if denied, could permanently send the company back above its market capitalization of $2 trillion. Source: xStation 5
On the other hand, PayPal's (PYPL.US) fourth quarter results disappointed investors. The company's shares are down more than 17% before the market opens. The weak guidance for the company's continued operations contributed most to the declines.
Shares of computer hardware giant Advanced Micro Devices (AMD.US) are up 12.5% ahead of the US open after the release of strong Q4 results and a promising outlook for sales value in 2022. The forthcoming finalization of the acquisition of Xilinx, which will add some strength to Intel's (INTC.US) rivalry, is also supportive.
Starbucks' (SBUX.US) financial results disappointed the market somewhat. The leading coffee chain communicated that the general increase in inflation is weighing on the company's revenue, thus translating into weaker results and a worse outlook for 2022. The company's CEO communicated that the current reality of elevated inflation will be present throughout 2022.
