DOW JONES, NIKKEI 225, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indexes are closed -0.24%, -0.47% and -1.12%
- The alphabet rose, while Apple and Microsoft fell after the revenue was released
- Asia-Pacific markets have started with caution after Chinese market turmoil
US revenue, Chinese stocks mess, FOMC Meeting with the Asia-Pacific region at the Open:
Wall Street shares fell to a record high on Tuesday as traders waited FOMC meeting and the Powell Press Conference. The volatility of the Chinese stock market and the persistent pandemic problems are weighing on the mood in the Asia-Pacific markets. The technical sector declined the most, as investors digested properly Second quarter revenue results and relatively mild follow-up guidance.
US benchmark futures rose lower in the early hours of APAC thereafter Apple, Microsoft and Alphabet posted their results. Here is a quick update:
- EPS is $ 1,296 and is estimated at $ 1,013 (27% higher)
- Revenue of $ 81.4 billion compared to $ 73.8 billion (10% higher)
- iPhone sales grew by almost 50% in a year, product line grew by more than 12% in a year
- Despite strong quarterly results, Apple warned of chip supply restrictions affecting iPhone and iPad sales next quarter
- EPS $ 2.17 vs. $ 1.92 (13% higher)
- Revenue of $ 46.1 billion compared to $ 44.2 billion (4% higher)
- Azure’s strong revenue growth boosted revenue and further guidance exceeded expectations
- EPS $ 23.8 vs. estimated $ 22.1 (7% higher)
- Revenue of $ 50.9 billion compared to $ 46.0 billion (10% higher)
- Revenue was boosted by strong advertising growth amid the setback of the pandemic
- YouTube’s revenue grew 83% year-on-year to $ 7 billion
- Share price rose 3% after hours in open trading
Follow DailyFX for more revenue information. Click the button HERE to download quarterly equity forecasts.
Source: Bloomberg, DailyFX
Looking to the future Australian inflation rate dominates today with an economic dock German GfK consumer confidence figure and The Federal Reserve’s interest rate decision. Learn more at DailyFX economic calendar.
Asia and the Pacific markets days to start with caution. Futures in Japan, mainland China, Australia, Malaysia, India and Thailand are in the red, while those in Hong Kong, South Korea, Taiwan and Singapore are in the green.
Hong Kong and mainland markets fell for the third day after Beijing tightened regulatory rules in the technology, education and real estate sectors. The Hang Sengi index fell 4.22% on Tuesday, a 3-day drop of 9.6%. Chinese technology stocks listed on US stock exchanges also fell sharply, showing a decline in open shares. Extremely volatile market conditions may be somebuy dip“Action, however, if HSI appears to be temporarily oversold according to several technical indicators.
Looking back at the end of Tuesday, 9 out of 9 Dow Jones sectors ended lower, with 56.7% of the index’s components closing in the red. Information technology (-0.80%), industry (-0.55%) and energy (-0.34%) were the worst, while communication services (+ 0.50%) were better.
Dow Jones Sector performance 20-07-2021
Source: Bloomberg, DailyFX
Dow Jones Index Technical Analysis
The Dow Jones index sets the main resistance level for the second time at 34,920. A successful test can reverse the “Triple Top” pattern of the chart and open the door to further upside potential. The “Triple Top” chart indicates the risk of a high trend trend when prices break the supporting trend line, as shown in the chart below. The Bearish MACD indicator indicates that the upward momentum may fade.
Dow Jones Index – Everyday Diagram
Nikkei 225 Technical analysis of the index:
The Nikkei 225 index remains in the descending channel formed since February. The floor and ceiling of the duct can be seen as a level of direct support and resistance, respectively. The overall trend has continued to decline, as suggested by the downward SMA lines. The MACD indicator is heading below the neutral line, indicating that the upward momentum may be weak.
Nikkei 225 Index – daily schedule
ASX 200 Technical analysis of the index:
The ASX 200 index exceeded the upper limit of the range associated with the range, as highlighted in the chart below. Exceeding this level could open the door to further ascension potential on 7,500 eyes. The general trend is still bullish-biased, as indicated by successive higher and lower levels in the last few months. The MACD indicator formed an ascending intersection and rose higher, indicating that the upward momentum is gripping.
ASX 200 index – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy point Twitter