- Investors take advantage of the lower purchasing price amongst technology company stocks. The NASDAQ recovers and trades closer to previous highs.
- Apple, Amazon, and Meta earnings beat Wall Street’s expectations. Apple falls 2.92%, Amazon rises 7.11% and Meta trades more than 15% higher.
- Apple revenue rises for the first time in over 12-months. Nonetheless, investors still sold shares as the company confirmed they are encountering difficulty in China, one of their largest markets. China previously has accounted for up to 25% of Apple’s revenue.
- Analysts expect the US Unemployment Rate to rise from 3.7% to 3.8% and for the NFP Employment Change to read 188,000.
USA500 – Earnings Push the USA500 to All-Time Highs
The USA500 was the best performing index on Thursday increasing in value by 1.25% and rising to a new all-time high. Technical analysis currently continues to indicate upward price movement. The asset trades above moving averages, above the Volume Weighted Average Price and oscillators continue to indicate buyers are controlling the market. The only concern for investors is the previous resistance level and if demand will decline at such a high price.
The price this morning trades within a price range between $4,937.90 and $4,928.87. If the price breaks above this level the assets’ buy signals can potentially strengthen. The upward price movement is supported by company earnings data. Apple, Amazon and Meta easily beat earnings and revenue data. Apple was the only stock which saw a decline after earnings due to negative data from China, its second most important market. Meta and Amazon on the other hand saw a significant rise in demand.
The Unemployment Rate is expected to increase from 3.7% to 3.8% and the Average Hourly Earnings to decrease from 0.4% to 0.3%. The Nonfarm Payrolls may also decrease from 216,000 to 188,000. According to analysts, the ideal release would be slightly weaker figures but not weak enough to indicate harsher economic conditions. Though weaker data can prompt the Fed to consider a rate cut earlier. However, higher and stronger employment data can temporarily pressure the stock market as it supports rates remaining higher for longer.
Important earnings reports will continue today and on Monday for the USA500. This morning ExxonMobil and Chevron will announce their earnings. Over the past month, neither stock has seen any significant bullish price movement. On Monday, McDonald’s and Caterpillar will announce their earnings. Both stocks are trading slightly higher in 2024.
GBPUSD – Bank of England Member Votes for Rate Cut!
The price of the British Pound rose in value against the currency market as a whole and the US Dollar Index moderately fell. During yesterday’s session the Cable rose 0.46% and is also trading higher this morning. However, investors should be cautious of upward price movements as the Bank of England were deemed to be more dovish than their global partners.
The Bank of England has a Monetary Policy Committee made up of 9 members. None of the nine members have ever voted for a rate cut in the past 4 years, until now. Only 2 members of the committee voted for a hike, which is lower than previous months. 6 voted for a pause and 1 voted for a rate cut. Additionally, the Governor of the central bank also said the regulator would consider a rate cut later in the year.
Lastly, investors will have their attention fixed on this afternoon’s upcoming economic releases across the Atlantic. If the US employment data and Consumer Sentiment read stronger than expectations, the Dollar can potentially attempt a correction.
Michalis Efthymiou
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
