- Indices open higher after yesterday's heavy declines. The S&P 500 gains 1.0% at the open, while the Nasdaq gains 1.5%
- Marathon Oil and Phillips 66 reported strong results thanks to increased demand for fuels
- The stock market sentiment is supported in anticipation of a possible pivot by the Fed. The dollar is losing its ground, precious metals are gaining
U.S. indices opened higher in the first session of the new month and are trading at their highest since 21st of September. The US500 is set to test 4,000 points today. The upbeat sentiment is driven by earlier gains in Europe and anticipation of a change in rhetoric from the Federal Reserve tomorrow.
The US500 continues a strong rebound that started on Friday and is trading at its highest since September 21. We can notice a slight decline in yields, although it is still too small to indicate that this is already a permanent change in the market perspective. Of course, it is worth remembering that statistically, the US500 had been gaining during the midterm election month. On the other hand, if the Fed stays with its current rhetoric and does not change its stance on further balance sheet reduction, it could mean that the current rebound is another correction in the downtrend.
Source: xStation5
Companies news:
- Marathon Oil (MRO.US) and Phillips 66 (PSX.US) were the latest US oil refining companies to release financial results. The companies showed strong results thanks to increased demand for fuel, high margins and limited supply. Marathon Oil earned $7.81 per share with expectations of $7.07 per share. The company boasted a margin of $30.21 per barrel. Phillips 66 earned $6.46 per share with expectations of $5.04 per share. The margin was $26.58 per barrel.
Marathon Oil is slightly up today after a good financial report. On the other hand, it is only a recovery after yesterday's fall caused by Biden's idea about the windfall tax. Source: xStation5
- Uber (UBER.US) released its results before the Wall Street opening bell. Revenues amounted to $8.34 billion, and adjusted profit was $516 million. On the other hand, the company posted a net loss of $1.2 billion due to equity investments. The company points out that after the pandemic, consumers have started using the company's services again in greater numbers.
- AMD (AMD.US) is gaining early in today's session ahead of its earnings release after the market close. The market expects EPS of $0.72, which would represent a 31% decline q/q and a 4% decline y/y. At the same time, the company is expected to report strong revenue growth. The company's shares have lost about 60% this year due to weak expectations for the semiconductor sector.
