North American News
Nasdaq and S&P continue the run higher. Dow closes with a modest decline
- Nasdaq leads the way
The major indices are closing higher with the Nasdaq leading the way.
The final numbers are showing:
- Dow Industrial Average fell -39.04 points or -0.11% at 34053.93
- S&P index rose 60.58 points or 1.47% at 4179.78
- NASDAQ index search 384.51 points or 3.25% at 12200.83
- Russell 2000 rose 40.40 points or 2.06% at 2001.22
In after hours trading earnings show:
Amazon:
- EPS three cents per share versus $0.17 expected.
- Revenues $149.2 billion versus $145.5 billion
- At 4:10 PM ET, Amazon shares are trading at $107.91. That’s back below its 200 day moving average of $112.87. The price closed at $112.91
Alphabet:
- EPS $1.05 versus $1.18 expected
- Revenues $76.1 billion versus $76.53 billion estimate
- Google shares are trading at $103.47. That’s back below its 200 day moving average at $104.91. The price closed at $107.74
Apple:
- Apple Q1 23 Earnings $AAPL
- EPS $1.88, EST. $1.94
- REV $117.15B, EST. $121.14B
Starbucks:
- EPS is $0.75 versus expected $0.77
- Revenues $8.71 billion versus $8.78 billion estimate
- Starbuck shares are trading at $105.83. That’s down from its closing level of $109.15
Ford
- EPS $0.51 versus $0.62 estimate
- Revenues $41.8 billion versus $39.8 billion estimate
- Ford stock is trading at $13.18 after closing at $14.32. Its price is just below its 200 day moving average of $13.32. The price moved back above its 200 day moving average on Tuesday.
Gilead sciences:
- earnings-per-share $1.67 versus $1.50 expected
- revenues of $7.4 billion versus $6.64 billion estimate
- Gilead shares are trading at $82.83 which is above its closing level of $81.39
US preliminary nonfarm productivity for 4Q 3.0% versus 2.4% estimate
- Preliminary US productivity and unit labor costs for the fourth quarter 2022
- Productivity 3.0% % versus 2.4% expected. Prior quarter 0.8%
- Unit labor costs and .1% % vs 1.5% expected. Prior quarter +2.4%. The gain reflected a 4.1% increase in hourly compensation and a 3.0% increase in productivity
- Output increased by 3.5% and hours were decreased by 0.5%
- From a year ago nonfarm business sector labor productivity fell -1.5%
US weekly initial jobless claims 183K versus 200K estimate
- Weekly initial jobs claims and continuing claims
- Initial jobless claims 183K versus 200K estimate
- prior week 186K. Prior week remains unrevised
- 4-week moving average of initial jobless claims 191.75K vs 197.50K.
- Continuing Claims 1.655M versus 1.677M estimate
- prior week 1.675M revise to 1.666M
- 4-week moving average of continuing claims 1.6515M vs 1.662M last week
- The largest increases in initial claims for the week ending January 21 were in Arkansas (+419) and the Virgin Islands (+5),
- The largest decreases were in California (-15,582), New York (-4,957), Ohio (-4,396), Georgia (-3,921), and Pennsylvania (-2,700).
US factory orders for December 1.8% versus 2.2% estimate
- US factory orders and durable goods orders revisions for the month of December
- Factory orders for December 1.8% versus 2.2% expected. Prior month -1.8%
- Durable goods unrevised 5.6% versus a 5.6% preliminary. Prior month -1.7%
- durable goods ex transportation x% versus -0.1% preliminary
- Durable goods Non Defense Cap ex-air -0.1% versus -0.2% preliminary
- Factory orders ex transportation -1.2% versus -1.2% last month (revise from -0.8%).
Commodities
Gold bears take on critical structure after European Central Bank meeting
- Gold price dropped despite the Federal Reserve and European Central Bank combination.
- US Dollar is attempting to correct from multi-week lows.
- United States of America Nonfarm Payrolls could be a major event for the Gold price and US Dollar.
Gold price is tinkering on the edge of a significant blow-off to the downside in the coming days. At the time of writing, XAU/USD is trading down 1.85% and has done most of the leg work for a move much lower. In prior analysis, a downside case has been advocated given the length of the bull rally and the recent breakdown of the Gold price bullish structure is compelling.
The Gold price has dropped from a bull cycle high made on the same day of $1,959.77 and has marked a low of $1,911.87, so far. However, critically, the Gold price has broken $1,918 and should there be a close below here on a daily basis, the bears will have made an impressionable mark on the charts for the week ahead. See below for the technical analysis of the Gold price.
Meanwhile, it has been a game of two halves so far this week with a series of fundamentals playing into both the US dollar and the Gold price. We are now moving into extra time with the Nonfarm Payrolls that will possibly be the deciding factor for both assets.
Silver dwindles after hitting a 9-month high, back below $23.50
- Silver slumps after reaching a new YTD high at $24.62 and is back below $23.50.
- Gold Price Forecast: XAU/USD erases Wednesday’s gains, plunges below $1,920 post BoE, ECB decisions.
- Silver Price Analysis: Trapped within the $23.00-$24.50 range.
After hitting a new nine-month high of $24.62, Silver price nosedives, failing to break the $23.00-$24.50 range for the fourth consecutive day in the week, and exchanges hands at around $23.40s at the time of writing.
Wall Street continues to record gains bolstered by a big tech company projecting a positive outlook for 2023. The Federal Reserve rate hike of 25 bps weighed on the greenback during Wednesday and Thursday’s overnight session. However, the greenback is staging a comeback, albeit US Treasury yields fall. That has been a tailwind for the white metal, extending its losses toward the bottom of the range.
WTI crude futures settle at $75.88
- Down -$0.53 or -0.69%
WTI crude oil futures are settling at $75.88. That’s down -$0.53 or 0.69%.
The high price today reached $77.24. The low price extended to $74.97.
EU News
European major indices close today with solid gains
- The German Dax rose by 2.16%. . Gerrmmaann DAX has its best days since
The major European indices are closing higher on the day despite 50 basis point rate hikes by the ECB and BOE.
The closing levels are showing:
- German DAX, +328.45 points or 2.16%
- France’s CAC +89.16 points or 1.26%
- UK’s FTSE 100 +59.03 points or 0.76%
- Spain’s Ibex +132 points or +1.45%
- Italy’s FTSE MIB +400 points or 1.50%
Other News
Bank of England Bailey: I’m not saying we’re done with rate rises
- BOE Bailey will be making the media runs
The BOEs Bailey who will be making media rounds after the BOE hiked rates by 50 basis points earlier today, said:
I’m not saying were done with rate rises as world is it too uncertain
ECB sources: See at least two more rate hikes
- Sources comments are trickling in
- Policymakers see at least two more rate hikes
- see increase of 25 basis points or 50 basis points in May
- see 3.5% as terminal rate
Cryptocurrency News
Crypto.com (CRO) at a crossroads
- Crypto.com price has been trading within a 10% range for nearly two weeks.
- The technicals for CRO display mixed signals, but a volatile move will solve the confusion.
- Bullish and bearish forecasts can be extracted using key levels mentioned below.
Crypto.com price is showing a double scenario. Key levels have been defined to assess the bullish versus bearish scenarios.
Crypto.com price is close to a move
Crypto.com price has been trading within a 10% range for nearly two weeks. The $0.08 barrier has consistently acted as resistance, and the mid-$0.07 has acted as support. The coiling range has yet to make a decision on which way it will resolve.
Crypto.com price currently auctions at $0.081. The Relative Strength Index (RSI), an indicator used to gauge market potential by assessing previous rallies, displays mixed signals. For instance, there have been several bearish divergences occurring near the mid-$0.08 zone during the last ten days. However, there’s also a bullish divergence between the recent low at $0.075 and the January 5 low at $0.070. The market will eventually provide a solution for the questionable back-and-forth price action. The move will likely result in a volatile move, but being early at an entry is ill-advised.
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