US stocks resumed gains: Wall Street climbed after the Fed-induced selloff as traders digested the “no March rate cut” indication. The last few big tech earnings, including Amazon, Meta, and Apple all beat expectations, with Amazon and Meta’s shares soaring in after-hours trading. The results may keep Wall Street’s uptrend for the time being. However, some bearish divergence surfaced in major indices, signaling potential correction opportunities ahead.
USD fell as the BOE held rate unchanged: The US dollar weakened against all the other G-10 currencies, with the dollar index falling to just above 103. The British Pound strengthened after the BOE kept the interest rate at 5.25% for the fourth time in a row. Governor Andrew Bailey indicated that rate cuts are on the cards this year.
Gold hit a two-week high: Gold futures rose to a two-week high due to a softened USD and further slides in the US bond yields. The precious metal is about 5% away from its all-time high of 2,150 in early December.
Crude oil slumped further: Oil prices fell sharply amid ceasing fire negotiation between Israel and Hamas. Both Brent and WTI futures fell more than 2%, with Brent down below US$80 per barrel for the first time since 23 January.
Chart of the Day:
Gold, daily – Gold is inches away from pivotal resistance of about 2,080. While momentum may take it to test the previous high of 2,088, a bearish divergence emerged in the RSI and the price trend. This may suggest a near-term selloff in the horizon.
Source: CMC Markets as of 2 Feb 2024
Company News:
Amazon (NDX: AMZN) jumped more than 9% in after-hours trading amid strong earnings results. The company forecasted net sales for Q1 of US$138 billion to $143.5 billion, topping an estimated 142.01 billion. The fourth-quarter revenue rose 14% to US$169.96 billion, beating the estimated $166.21 billion, up 14% year on year.
Meta Platforms (NDX: META) soared 14% in after-hours trading amid the Q4 earnings result. The company benefited from Chinese retailers Temu and Shei, who boosted its advertising revenue. Its EPS came to $5.33, beating the expected $4.96. The revenue was at $40.1 billion, higher than the estimated $39.18 billion. Meta announced the first-ever dividend of 50 cents.
Apple (NDX: AAPL) fell 1% despite an earnings beat as sales in China declined about 13% year over year. The iPhone maker’s revenue rose 2.1% to US$117.97 billion, topping an estimated US$117.97 billion. Its iPhone revenue rose 6% to $69.70 billion, topping the estimated $68.55 billion.
Today’s Agenda:
Australia’s PPI for January
US Non-farm Payroll for January
US UoM Consumer Sentiment (the second read)