Markets enjoyed a bullish night as big tech rises ahead of reporting tonight and also, they managed to gain even after their respective CEOs testified in front of Congress, addressing antitrust concerns.
The FED also helped keep investors and traders at ease after confirming a dovish stance and a whatever it takes attitude to get their economy through the Virus lockdowns.
It was yet another big night for earnings which a lot of companies also reported after the market. At this stage, out of the 190 in the SP500 that have reported – 144 beat expectations and 46 missed.
Boeing missed EPS expectations by 99%, General Electric missed by 65%. General Motors beat 72%, and Garmin beat 72%. This shows the sign of the times, that some stocks are being hit whilst some a thriving in this Covid-19 environment.
We are still waiting for further news on Fiscal stimulus this week which should help give markets another bump higher, if not before.
With positive leads from the U.S last night our market is set to have a positive open at roughly 6070. The indicates our market, like the U.S, is bouncing off the uptrend line and perhaps ready to go on and test the post fall highs of 6175. The 6000 level also once again proved to be a strong enough level that helped buoy our market.
U.S futures are flat this morning, but hopefully they remain green so our market can hold the positive open. If they pull into the red, expect another lackluster day with whippy movement.
Not much has changed, with our market still trading in the triangle pattern and seems less likely we are going to break this week. At this stage, we still assume bullish to sideward movement until we are shown otherwise.
Virus cases continue to weigh on markets, but like the past few months, continued dovish sentiment from central banks and stimulus from governments are likely to keep markets edging higher.
US shares rose strongly overnight, with the conclusion of the latest Federal Reserve meeting where they indicated they would continue to use all the tools at their disposal to help the economy through the coronavirus. US company earnings were also mostly positive overnight, although Boeing was one dark spot, with the plane manufacturer reporting a large loss. Telecoms finished lower, but every other major sector finished higher. The standout sectors overnight were Financials, Technology stocks, and Oil & Gas stocks. Oil & Gas was actually the strongest sector after a US inventory read showed a surprise inventory draw-down.