Jump to content

Dow Jones Gains on Alphabet Earnings, Facebook Miss Leaves APAC Stocks at Risk


Recommended Posts

DOW JONES, NIKKEI 225 INDEX, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.63%, +0.94% and +0.80% respectively
  • Alphabet climbed +7.5% whereas Facebook plunged -22% on Q4 results, underscoring an uneven earnings season
  • Asia-Pacific equities look set to open mixed. China, Hong Kong and Taiwan markets remain closed for the CNY holiday
News updates from October 26: Alphabet and Microsoft smash estimates,  Robinhood disappoints as crypto activity fades, UK retailers face severe  stock shortages | Financial Times

Dow Jones, Alphabet, Facebook, Asia-Pacific at Open:

The Dow Jones Industrial Average climbed for a fourth day on Wednesday as strong Alphabet earnings boosted market sentiment. Investors have probably also shrugged off the Fed’s tightening signal after last week’s FOMC meeting sent shockwaves to markets. Buyers appeared to have returned to the US market looking for bargain hunting opportunities amid the peak of the earnings season. We have observed an uneven pattern of reports, with some companies highlighting rising labor costs and supply chain challenges, whereas others have weathered the headwinds better. Looking ahead, Amazon will be the last FAANG company to report results after Thursday’s bell.

Alphabet has beaten on both the top and bottom lines for the fourth quarter. The company has also announced a 20-for-1 stock split. It registered a stellar revenue growth of 32% YoY, surpassing analysts’ forecasts. Its advertisement revenue surged 33% YoY to $61.24 billion, underscoring strong growth momentum amid a challenging environment. YouTube ad revenue was the only segment that fell short of market expectations however.

On the other hand, Facebook’s parent company Meta plunged more than 20% during after-hour trade after it announced weaker-than-expected earnings. Both its top and bottom line figures fell slightly short of consensus. Daily Active Users (DAUs) declined slightly during the fourth quarter, a sign that its momentum may have peaked. Facebook also projected lower revenue for the coming quarter, which is again below market expectations.

Futures of the Nasdaq 100 index plunged 2.3% during early APAC trade, wiping out Wednesday’s gains. This may set a sour tone for trading in the region. Mainland China, Hong Kong and Taiwan bourses remain closed for the Lunar New Year holiday, therefore trading might be quieter-than-usual.

Facebook - Daily

Dow Jones Gains on Alphabet Earnings, Facebook Miss Leaves APAC Stocks at Risk

Chart created with TradingView

Futures in Japan, Australia, Singapore and Malaysia are in the red. Those in South Korea, Taiwan, India, Thailand and Indonesia are in the green.

Looking ahead, the BoE and ECB interest rate decisions dominate the economic docket alongside US ISM Non-Manufacturing PMI. Find out more from the DailyFX calendar.

Looking back to Wednesday’s close, 7 out of 9 Dow Jones sectors ended higher, with 70% of the index’s constituents closing in the green. Healthcare (+1.43%), consumer discretionary (+1.14%) and consumer staples (+0.99%) were among the best performers, whereas communication services (-0.64%) trailed behind.

Dow Jones Sector Performance 02-02-2021

Dow Jones Gains on Alphabet Earnings, Facebook Miss Leaves APAC Stocks at Risk

Source: Bloomberg, DailyFX

Dow Jones Index Technical Analysis

The Dow Jones Industrial Average rebounded from a key support level at 33,830 – the previous low seen in October. An immediate resistance level can be found at around 35,760 – the 61.8% Fibonacci retracement. The MACD indicator formed a bullish crossover and trended higher, underscoring upward momentum. The RSI oscillator rebounded from the oversold threshold, suggesting that a technical upswing is underway.

Dow Jones Index – Daily Chart

Dow Jones Gains on Alphabet Earnings, Facebook Miss Leaves APAC Stocks at Risk

Chart created with TradingView

Nikkei 225 Technical Analysis:

The Nikkei 225 index breached below a “Symmetrical Triangle” pattern and thus opened the door for further losses. The lower trendline of the “Symmetrical Triangle” has now become an immediate resistance. The MACD indicator formed a bullish crossover beneath the neutral midpoint, suggesting that bearish momentum may be depleting.

Dow Jones Gains on Alphabet Earnings, Facebook Miss Leaves APAC Stocks at Risk

Chart created with TradingView

ASX 200 Index Technical Analysis:

The ASX 200 index breached below the floor of a range-bound zone between 7,200 to 7,500, exposing the next support level of 6,920 – the 61.8% Fibonacci extension. Prices are attempting for a technical rebound this week with an eye on 7,080 for resistance. The MACD indicator is about to form a bullish crossover, suggesting that selling pressure may be depleting.

ASX 200 Index – Daily Chart

Dow Jones Gains on Alphabet Earnings, Facebook Miss Leaves APAC Stocks at Risk

Chart created with TradingView

 

Written by Margaret Yang, Strategist for DailyFX.com. 3rd Feb 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      22,068
    • Total Posts
      92,908
    • Total Members
      42,474
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    scobes2
    Joined 17/05/23 10:51
  • Posts

    • Does anyone else know any other SB providers that you can use to trade through TV?  I've only so far seen CFD providers which doesn't work for me due to tax reasons (mainly the hassle of having to account for it as well as the obvious cost).
    • Is there any update on when/if there will be any integration with Tradingview???
    • The anonymity of cryptocurrency transactions can vary depending on the specific cryptocurrency you use and the methods you use. While some cryptocurrencies provide a degree of privacy and anonymity, it is important to note that achieving complete anonymity can be difficult. Most cryptocurrencies operate on a pseudonymous basis. Transactions are recorded in a public ledger, called a blockchain, using cryptographic addresses instead of personal information. However, these addresses are usually not directly linked to a real identity, unless someone voluntarily discloses this information. Some cryptocurrencies, such as Monero (XMR) and Zcash (ZEC), are specifically designed to increase privacy and anonymity. I read on https://deeplab.com/darkweb/anonymous-sudan-launches-cyberattacks-on-middle-eastern-news-outlets-expands-target-list-with-four-additional-names that some people use this anonymity as a cyber attack.
×
×
  • Create New...