Wall Street Close: Stocks rebound anticipating strong earnings

The Dow Jones Industrial Average closed up 139.16 points, or 0.52%.
The S&P 500 added 39.08 points, or 1.19%.
Nasdaq Composite put on 180.73 points, or 1.64%.

Ross J Burland FXStreet

US stocks ended higher on Thursday, with the technology heavyweights rallying before the earnings results and on significantly improved US economic data to distract investors from surging coronavirus cases.

The bulls stepped in to clean up the mess left behind following a 3% slide on the prior session.

Volatility has been present for a number of sessions in the lead up to the US presidential election on the 3rd of November and amid the growing fears of another COVID slowdown.

Anticipating further positive earning results, stocks rallied as investors anticipated strong results from a line-up of the biggest names in the US corporate universe - Apple Inc AAPL, Amazon.com Inc AMZN, Google parent Alphabet Inc GOOG and Facebook Inc FB that arrived after the bell on Thursday.

The Dow Jones Industrial Average closed up 139.16 points, or 0.52%, to 26,659.11. The S&P 500 added 39.08 points, or 1.19%, to 3,310.11 and the Nasdaq Composite put on 180.73 points, or 1.64%, to 11,185.59.

Earnings

Facebook Q3 20 earnings results: $2.71 (estimate: $1.91).
Revenue: $21.47b (estimate: $19.84b).
Ad revenue: $21.22b (estimate: $19.55b).
Monthly active users 1.82b, +12 y/y (estimate: 1.78b).

Amazon Q3 20 earnings results: $12.37 (estimate: $7.55).

Revenue: $96.1b (estimate: $92.71b).

Apple Q4 20 earnings results: $0.73 (estimate: $0.70).
Revenue: $64.7b (estimate: $63.47b) .
China revenue falls 29% in Q4.

Twitter Q3 20 earnings results: $0.19 (estimate: $0.05).
Revenue: $936.2m (estimate: $780.5m).
Daily active users +20% (estimate: +33.6%).

US data beats expectations

Meanwhile, from the data front, Q3 GDP beat expectations slightly, rising by 33.1% in SAAR terms versus 32% expected.

''The growth numbers look impressive, and will in most countries that experienced such massive COVID-related activity disruptions in Q2,'' analysts at ANZ Bank explained.

''However, even with the rebound, US output remains 3.5% below its pre-COVID levels. The path towards recovery is much less clear from here, especially as the number of virus cases grows and there are near-term impediments to a fiscal deal.''

In other data, US initial jobless claims also beat expectations, falling to 751k vs. 770k expected.

''Other data showed that claims for Pandemic Unemployment Assistance (which covers self-employed and part-time workers) rose for a second straight week. Overall, it continues to be the case that the pace of the labour market recovery has slowed,'' the analysts at ANZ said.

S&P 500 levels

Overview
Today last price	3329.5
Today Daily Change	32.75
Today Daily Change %	0.99
Today daily open	3296.75

Trends
Daily SMA20	3437.32
Daily SMA50	3410.86
Daily SMA100	3309.83
Daily SMA200	3125.85

Levels
Previous Daily High	3366.75
Previous Daily Low	3280.5
Previous Weekly High	3505.5
Previous Weekly Low	3416
Previous Monthly High	3587
Previous Monthly Low	3209.5
Daily Fibonacci 38.2%	3313.45
Daily Fibonacci 61.8%	3333.8
Daily Pivot Point S1	3262.58
Daily Pivot Point S2	3228.42
Daily Pivot Point S3	3176.33
Daily Pivot Point R1	3348.83
Daily Pivot Point R2	3400.92
Daily Pivot Point R3	3435.08

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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