North American News
US major indices close mixed
- Dow Industrial Average ekes out a small gain. S&P and Nasdaq have small losses
The major US stock indices are closing with mixed – but modest – results. The major indices erased sharp declines.
The final numbers are showing:
- Dow Industrial Average rose 9.86 points or 0.03% of 33743.83
- S&P index fell -0.73% or -0.02% at 4016.21
- NASDAQ index fell -20.90 points or -0.18% at 11313.37
- Russell 2000 rose 4.708 points or 0.25% at 1890.31
US treasury auctions off $43 billion a five year note that a high yield of 3.53%
- WI level at the time of the auction 3.554%
- High-yield 3.55%
- WI level at the time of the auction 3.554%
- Tail -2.4 bps versus six month average of 0.4 basis points.
- Bid to cover 2.64X verse six month average of 2.39X.
- Directs (a measure of domestic demand) 15.4% versus six month average of 17.8%.
- Indirect (a measure of international demand) 75.74% versus six month average of 64.3%
- Dealers (they take the rest) 8.8% versus six month average of 17.9%
Tesla $1.19 vs $1.13 estimate. Revenues beat expectations as well
- Revenues come in at $24.32B
Tesla earnings:
- EPS $1.19 vs $1.13 estimate
- Revenues 24.32 billion versus 24.03 billion estimate
- Cash flow $1.42 billion below $3.13B estimate.
- Maintaining volume guidance of 50% car annual growth rate
- Vehicle deliveries for 2023 estimated at 1.8 million. That growth rate is less than 40% annual growth rate
IBM Earnings:
- EPS $3.60 vs $3.60 est.
- Revenues$16.7 vs 16.4B estimate
- Announces 3900 job cuts
The stock is trading up $0.24 or 0.17% in after-hours trading
ServiceNow Earning:
- earnings-per-share $2.28 versus $2.02 estimate
- Revenues 1.94 billion versus 1.94 billion estimate
Shares of ServiceNow are trading down $21.77 or -4.5% in after-hours trading
Commodities
Gold is expected to rally further – Credit Suisse
Os Tuesday, Gold XAU/USD registered its highest daily close since April. Strategists at Credit Suisse expect the yellow metal to enjoy further gains.
Initial support aligns at $1,897
“Gold is expected to extend its rally to resistance next at the 78.6% retracement of the 2022 fall and April 2022 high of $1,973/98, with a fresh cap expected here.”
“Only above the $,2070/75 record highs of 2020 and 2022 would suggest we are seeing a significant and meaningful long-term break higher with resistance levels then seen at $2,300, then $2,500.”
“Support is seen at $1,897 initially, below which can see a pullback to $1,825.”
Silver sees weakening upside momentum – TDS
Silver price (XAG/USD) remains depressed. Economists at TD Securities expect the precious metal to stay under pressure.
Beginning of a reversal lower across precious metals
“In the absence of behemoth Chinese purchases, CTA trend follower liquidations in Silver are likely to weigh on prices.”
“We expect weakening upside momentum to spark a selling program as large as -8% of the funds’ maximum historical position size, but a break above the $23.72 range could result in a more modest flow totaling -4% of this cohort’s max size. This follows the deterioration in precious metal trend signals in Platinum, and could be hinting at the beginning of a reversal lower across the complex.”
“The jury is out on whether large-scale Chinese purchases of Gold will continue following Lunar New Year, but the analogy from India’s reopening suggests that ongoing celebrations could mark the peak in retail demand.”
WTI crude oil futures settling at $80.15
- Up $0.02 or 0.02%
The price of WTI crude oil futures are settling at $80.15. That’s up to cents or +0.02%.
The high price for the day reached $81.23. The low price extended to $79.45.
EIA weekly crude oil inventories 533K vs +971K expected
- Weekly US oil inventory data
- Prior was +8408K
- Gasoline+176K vs +1767K exp
- Distillates -507K vs -1121K exp
- Refinery utilization +0.8% vs +1.2% exp
- Production 12.2m vs 12.2m prior
- Implied mogas demand 8.14m vs 8.05m prior
EU News
Major European indices close marginally lower in the day
- Modest declines for European indices
Although the major European indices are closing the day with declines, the closes are nearer the highs for the day.
- German DAX -0.08%
- France’s CAC -0.09%
- UK’s FTSE 100, -0.16%
- Spain’s Ibex -0.11%
- Italy’s FTSE MIB, -0.03%
Other News
US to provide 31 Abrams tanks to Ukraine
- The take months, not weeks
The US will provide 31 Abrams tanks to Ukraine. Biden says:
- The transfer will take months, not weeks
- US will train Ukrainian troops as soon as possible
- Armored capability has been critical for Ukraine
- Germany has really stepped up its support of Ukraine
- Sending tanks to Ukraine is not an offensive threat to Russia
The stakes of war are increasing as Europe and the US look to stop the Russian offensive.
Cryptocurrency News
Ethereum dips in search of support, and these levels are crucial for entries
- Ethereum price completes the rejection from over the weekend after hitting a curb.
- ETH sinks in search of support and could have more room to go.
- The rally could remain intact if $1,425 holds its ground.
Ethereum (ETH) price sees pressure mounting as profit-taking gets sped up by bulls exiting their positions in light of the risk events into next week. With several big central banks set to issue their first monetary policy meeting for the year, traders are bracing for a cold shower as several central bankers have recently issued warnings that a victory dance in the markets is too early and too premature since inflation remains historically elevated. As long as the 200-day Simple Moving Average (SMA) at $1,425 holds, the rally is intact, while any lower break is a warning sign.
Ethereum price is still granted for a rally, but momentum is fading
Ethereum price is seeing the sentiment and enthusiasm among traders take a turn for the worse as markets signal that profit-taking is underway. The trigger came after $1,688 got tested with a firm rejection as the end result. With the current fade of roughly 10% to the downside, a cool-down in the Relative Strength Index (RSI) and its price action is welcomed, but it must not go further than needed.
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