Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.
PayPal, GM, Booking, Moderna: stocks react to reports
PayPal: not good enough
PayPal brought an EPS of $1.22 vs. $1.01 and revenue of $6.03 vs $5.90 beating the market expectations. Also, the CEO of the company announced that they are moving towards a digital wallet that’ll allow crypto asset transfers. Nevertheless, the forecast-beating data and the new market expansion plan were not enough to push the stock through the local resistance level or even make it come closer to $275. The price is trebling above the local support of $245, below all the MAs, and doesn’t seem exactly bullish at the moment.
GM: beating and winning
General Motors performed far better than PayPal against the forecasts. The estimation of the market was an EPS of $1.04 and revenue of $32.67. While the actual revenue was $32.47, the EPS resulted to be $2.25 –more than twice as much as the market expected. That impressed observers enough to make the stock bounce off the local lows of $55 and make it cross all the MAs challenging local highs. The all-time high of $63 is now a feasible target for bulls.
Booking: battered by the virus
Booking Holdings was having a different struggle during the first quarter of the year. As the travel was most hit by the virus, observers were expecting a loss in line with the industry-wide damage. Booking managed to report losses less than the market estimates: an EPS of -$5.26 was brought against the expectation of -$5.97, and revenue of $1.24B beat the forecast of $1.2B. Despite the positivity of the report, the stock price did not rise nor did it even stay afloat around $2340 when the report was out. Instead, it dropped to $2260 reflecting the disappointment of investors and presenting a fragile short-term outlook.
Moderna: a sudden plunge
Moderna’s plunge was spectacular. It beat the EPS expectation of $2.6 with the actual figure of $2.84 but revenue missed the target: $1.94B vs a greater forecast of $2.23B. Apparently, the disappointment was big enough to make the stock price plunge to $145 erasing gains of the last three weeks. Although it quickly recovered some of the losses rising to $160, the resistance zone of the all-time highs of $188 is far away once again.
The United States will release MoM Retail Sales data on September 16, 15:30 GMT+3.
The next week is going to be interesting for traders. The US, UK, and Canada will reveal the inflation data. Australia will show the labor numbers, while New Zealand – GDP growth.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.