US open: Wall Street creeps higher, Microsoft sales surge
Fiona Cincotta October 27, 2021 9:18 PM
US stocks are set to open just a few points higher on mixed earnings. Microsoft to rally on cloud sales boom.
Dow futures +0.13% at 35796
S&P futures +0.09% at 4576
Nasdaq futures +0.14% at 15575
FTSE -0.16% at 7267
Dax -0.5% at 15657
Euro Stoxx -0.19% at 4216
Earnings remain in focus
US stocks are set to open mildly higher amid mixed earnings and falling commodity prices.
Microsoft is set open over 1% higher after a boom in sales. Companies moving to the cloud has lifted revenue in Microsoft’s cloud business to $20 billion for the first time. Microsoft it is snapping at Apple’s heels to take the crown of the world’s most valuable company. All eyes will now be on Apple’s results to see whether the time has come for Apple to pass the crown on.
Whilst McDonald’s, Coca-Cola and Twitter all advanced pre-market on positive earnings, Visa and Mastercard declined.
Inflation concerns continued to plague the market. Australian inflation jumping to the highest level in 6 years refocused investors attention back onto rising prices and the negative impact on growth.
The fact that the market is still rising, albeit slightly, suggests that earning optimism is still overshadowing inflation, supply chain and labour market jitters. However, concerns remain that these headwinds could start eating into margins and hamper the economic recovery going forward.
Where next for the Dow Jones Index?
After breaking out at the end of last week the Dow is set to climb higher. There are few signs on the chart that this move higher has run its path. Support can be seen at 35535 and 35000 – a move below here could negate the near term up trend. It would take a move below 34125 for sellers to gain momentum.
FX – USD tip toes higher
The US Dollar is edging higher building on gains from the previous session after consumer confidence unexpectedly in October, after falling for three straight months. Concerns over Delta covid appeared to ease. US durable goods order are due and are expected to fall for the first time in 5 months
GBP/USD -The Pound is trading under pressure as the Chancellor is giving his autumn budget. Many measures have already been announced. The OBR’s GDP forecast was upwardly revised to 6.5% from 4%
GBP/USD -0.2% at 1.3735
EUR/USD +0.17% at 1.1616
Oil pares losses
Oil prices are heading lower after industry data revealed that crude oil stocks piles rose by 2.3 million barrels, more than the 1.9 million expected and fuel inventories unexpectedly rose by 500,000 barrels. The API data release has given a reason for traders to take profits off the table, particularly after crude oil hit fresh multi year highs on Monday.
Despite today’s fall the broader uptrend remains firmly intact as investors look ahead to the release of EIA inventory data.
WTI crude trades +0.18% at $83.60
Brent trades +0.12% at $85.31
15:00 BoC interest rate decision
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.