Wake Up Wall Street (SPY) (QQQ): Apple with the save as Amazon looks grave
Here is what you need to know on Friday, October 28:
Apple (AAPL) may have saved the day for this recent equity recovery after a solid if unspectacular set of earnings last night. iPhone revenues held up, but the company did fail to provide guidance. Big tech though has overall been a disaster. Amazon (AMZN) came out before Apple last night: AWS was poor, and the guidance was too. Operating income also was worrying. The stock cratered 20% before recovering and is now down 12%. Oil prices continue to underpin the oil majors, and Exxon (XOM) is just out with a huge record profit number. All eyes now turn to the Fed pause hopes with the release of PCE data. Based on the Cleveland Fed forecasts, the market may get what it wants and an inline or slightly lower number. Whether that will be enough to reignite the equity rally after big tech though is less clear.
Over in FX, the dollar is attempting to end a poor week on a strong foot. The ECB remained dovish, and overnight the BOJ stuck to its path for bond purchases and YCC. The Dollar Index is at 110.65, just a small bit higher. Oil is holding most of the gains from Thursday despite more talk of a Chinese lockdown. This is helped no doubt by the slightly better US GDP number and a surprising German growth number this morning. Oil trades at $88.45. Gold is failing to capitalise on lower yields and is back to $1,651, while Bitcoin too is lower to $20,100.
European markets are mixed with the Eurostoxx +0.3% and the Dax down 0.4%. FTSE is flat.
US futures are lower thanks to tech. The Nasdaq is -0.8%, Dow is flat and S&P is -0.5%.
Wall Street top news (SPY) (QQQ)
BOJ stays with YCC and does not expect change any time soon.
Twitter (TWTR): Elon Musk takes over and fires top execs.
Apple (AAPL) earnings in line, iPhone revenues solid. No guidance. FX headwinds, revenue to fall next quarter.
Amazon (AMZN) earnings were poor, falls 20%, then recovers to -13%. AWS poor, income poor and outlooks is weaker than expected.
Exxon (XOM) has record profits. EPS $4.68 versus $3.89 expected.
Chevron (CVX) also reports strong earnings. $5.78 v $4.86 estimate for EPS.
Gilead Sciences (GILD) reports strong earnings.
Pinterest (PINS) offers up strong earnings.
Intel (INTC) cuts forecasts, but PC reveues looked decent enough. EPS beat estimates.
Sanofi (SNY) raised its forecasts on strong demand for flu products.
American Airlines (AAL) offers 19% pay raise to pilots.
Deckers (DECK) down 6% on conservative guidance.
Upgrades and downgrades
Source: WSJ.com
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
