NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indices closed at + 0.07%, + 0.20% and + 0.66%, respectively
- Both Twitter and Intel exceeded EPS estimates, but Intel’s further guidelines disappointed investors
- The Asia-Pacific markets are open to mixed markets. Japanese markets are closed for holidays
Twitter, Intel, Unemployment Claims, Asia Pacific Open:
Shares of Wall Street rose to all-time highs on Thursday as investors digested strong business profits amid revived hopes of reflection. Asia and the Pacific markets however, may continue to be monitored behind US peers Delta variant in the area of Covid-19.
The US profit season has gone well so far – about 86% of S&P 500 companies outperformed analysts’ EPS forecasts. The profits reported on Thursday from 22 of the 25 companies are positive surprises, including Twitter and Intel. Here is a quick update:
- EPS is $ 0.20 compared to $ 0.064 (189% higher)
- Revenue is $ 1.19 billion, compared to $ 1.06 billion (11.8% higher)
- The resumption of live broadcasts and increased brand advertising boosted 2Q results in the midst of Covid’s unlocking. Demand from large advertisers may remain within two hours
- EPS is $ 1.28, compared to the estimate of $ 1,065 (20% higher)
- Revenue $ 18.53 billion, compared to $ 17.84 billion (4% higher)
- Intel’s share price fell 2% after the company took precautionary measures on gross margins in Q3 due to supply constraints
- Although the supply of personal computers and servers may be a bright spot, the growth of the semiconductor segment still lags behind competitors such as Nvidia and AMD
In the meantime, weekly initial USA unemployment claims data fell short of expectations. Last week, about 419 thousand unemployment benefits were submitted, compared to an estimated 350,000. Last week’s figure was adjusted from 360k to 368k. The slower-than-expected recovery in the labor market may allay declining fears as Fed officials monitor both inflation and employment indicators when formulating monetary policy.
US Weekly Unemployment Claims
Source: Bloomberg, DailyFX
Asia and the Pacific markets see that the week is over. Futures in Australia, mainland China, Hong Kong, Taiwan, Singapore and India are higher in the red, while those in South Korea, Malaysia and Thailand are higher. Japanese markets are closed for public holidays.
Looking at the end of Thursday, 4 Dow Jones sectors finished higher than 5, with 46.7% of the index’s components closing in green. Materials (+ 1.26%) and information technology (+ 1.08%) were the best, with energy (-1.00%) and finance (-0.99%) lagging behind.
Dow Jones Performance of the sector 22-07-2021
Source: Bloomberg, DailyFX
Nasdaq 100 Index Technical Analysis
The Nasdaq 100 index tries for the second time to exceed the main resistance level of 14,950. A successful test may open the door to further upside potential, while a setback may lead to testing a 20-day SMA line for immediate support. The MACD indicator formed a falling intersection and headed lower, suggesting that the upward momentum may subside.
Nasdaq 100 Index – Everyday Diagram
Technical analysis of the Hang Seng index:
The Hang Seng index appears to have recovered immediately from support levels of 27,150, potentially forming a double-chart pattern. However, the overall trend has declined as the SMA lines have formed a “Death Cross” and moved downwards. The MACD indicator forms a bullish crossover below the neutral midpoint, indicating that short-term selling pressures may be exhausted.
Hang Sengi index – Everyday Diagram
ASX 200 Technical analysis of the index:
The ASX 200 index trades in the tight range of 7230-7370, waiting for fresh catalysts to break through. The general trend is still bullish-biased, as indicated by the successive higher and lower levels of the last few months. The main resistance level can be found at around 7500. The MACD indicator is starting to form a bullish crossover, indicating that the bullish momentum may be increasing.
ASX 200 index – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy Twitter