Opening Bell: Earnings, Virus Concerns Spur U.S. Tech Shares; Gold Slumps

  • S&P 500 scores fresh intraday all-time high
  • NASDAQ 100 notches new closing record
  • IMF downgrades European economic growth

Key Events

Futures contracts on the , and are lower in pre-US open trading on Wednesday as investors wait to hear Chairman of the US Federal Reserve, Jerome Powell speak later today.

Only futures on the are in the green, after Microsoft (NASDAQ:) fiscal second-quarter results which beat expectations on Tuesday after the US close.

Gold and Bitcoin continue to .

Global Financial Affairs

European stocks were under pressure, as the Index opened lower after the IMF downgraded its 2021 Eurozone growth forecasts on concerns of COVID-19 vaccine shortages.

The pan-European index edged slightly higher after luxury conglomerate LVMH (PA:) reported that sales surged in its fourth quarter, and Sweden’s largest bank SEB (ST:) announced plans to return more money to shareholders, but the news failed to stop the downward momentum.

The Index ended a volatile session somewhat lower on Tuesday, on the on-again-off-again consideration of a negative outlook due to the persistent contagion of the coronavirus, compounded by challenges to the $1.9 trillion stimulus package that was all but taken for granted once Joseph Biden was elected president and Democrats gained control of both houses of Congress.

S&P Daily

S&P Daily

The S&P 500 scored a new all-time high, before it closed lower, and after it confirmed the integrity of a bullish flag, signaling a rally toward 4,000.

While contracts on the NASDAQ 100 leapt after the closing bell on Microsoft’s earnings beat, building on its record close.

MSFT Daily

MSFT completed a bullish symmetrical triangle exactly one week ago, suggesting smart money had confidence, or that informed money had an idea, that earnings would surprise to the upside.

Tesla (NASDAQ:) is due to report after the US close today. We the stock could move beyond $1000 per share.

Shares in Facebook (NASDAQ:), which is also scheduled to release corporate after the bell, stand at a crossroad.

FB Daily

The social media giant’s stock found resistance yesterday by the top of a descending triangle, increasing the odds of a decline toward its bottom at $245. If the resistance is broken, it will create a chain of events pushing the price toward, and even below, $200. However, an upside breakout of the pattern would upend the technical domino effect, propelling the stock even higher.

Finally, Apple (NASDAQ:) too is after the close. The stock’s recent price activity suggests momentum is to the upside.

AAPL Daily

Last week Apple completed an ascending triangle—bullish, and supported by an earlier bullish, symmetrical triangle, followed by a falling flag. The stock is aiming towards the $170 level.

The rose within a range ahead of the FOMC policy .

Dollar Index Daily

The US currency is wedged between a falling trend and a H&S bottom that might help complete a massive bullish wedge.

fell for the fifth straight day despite high bearish bets against the dollar, as the precious metal’s haven status may be weighing it down.

Gold Daily

The yellow metal is squeezed between its falling channel and potential H&S bottom.

fell, along with the gold, on dollar strength.

Bitcoin Daily

The cryptocurrency is ranging within a possible falling flag, whose conservative implied target puts it above $45,000.

rose within a falling flag, whose implied target, upon an upside, is expected to be $60 a barrel.

Oil Daily

Up Ahead

  • Fourth-quarter , and are among US data releases on Thursday.
  • US , and come Friday.
  • Canada reports its monthly on Friday.

Market Moves

Stocks

  • Futures on the S&P 500 Index dipped 0.1%.
  • The Stoxx Europe 600 Index decreased 0.1%.
  • The Index declined 0.2%.
  • The Index fell 0.5%.

Currencies

  • The Dollar Index jumped 0.25% to 90.38.
  • The fell 0.1% to $1.2151.
  • The was little changed at $1.3742.
  • The was little changed at 6.466 per dollar.
  • The weakened 0.1% to 103.68 per dollar.

Bonds

  • The yield on 10-year Treasuries rose less than one basis point to 1.04%.
  • The yield on Treasuries decreased less than one basis point to 0.12%.
  • Germany’s yield increased less than one basis point to -0.53%.
  • Britain’s yield rose one basis point to 0.274%.
  • Japan’s yield gained one basis point to 0.049%.

Commodities

  • West Texas Intermediate crude gained 0.8% to $53.04 a barrel.
  • increased 0.8% to $56.35 a barrel.
  • Gold weakened 0.1% to $1,848.88 an ounce.
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