- US stocks opened higher
- Microsoft (MSFT.US) stock rises on upbeat revenue guidance
- Alphabet (GOOGL.US) stock under pressure after weak quarterly results
US indices launched today's session higher, despite mixed results published by major US tech companies and ongoing concerns regarding inflation, monetary tightening and ongoing war in Ukraine. It seems that many investors have again decided to use the "buy the dip" strategy as Dow Jones added over 100 points at the opening bell, while the S&P 500 and Nasdaq advanced 0.5% and 1%, respectively. Meta Platforms, formerly Facebook, will report results after the close of the Wall Street session, which may also cause increased volatility on the market as was the case of Microsoft and Alphabet.
US100 slumped nearly 4.0% on Tuesday and hit a fresh 1-year low following disappointing quarterly results from major tech firms. Sellers manage to break below the lower limit of the local 1:1 structure and psychological support at 13000 pts. Despite negative sentiment buyers did not lay down their weapons and index rebound on Wednesday. Nevertheless as long as price sits below the major resistance at 13750 pts, downward move may resume. Source: xStation5
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Alphabet (GOOGL.US) stock fell 4.0% in premarket after Google’s parent company reported weak quarterly results as the war in Ukraine hurt YouTube ad sales, overshadowing news of a $70 billion buyback. Company earned $24.62 per share on revenues of $68.01 billion. Analysts expected earnings of $25.91 on revenues of $68.11 billion, according to Refinitiv. YouTube ad revenue reached $6.87 billion while the market expected $7.51 billion.
Alphabet (GOOGL.US) stock broke below the lower limit of the consolidation zone around $2488.00, which now acts as resistance. Disappointing quarterly figures provided more fuel for sellers - stock launched today's session with a bearish price gap and is heading towards local support at $2255 which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
Microsoft (MSFT.US) shares jumped 3.6% in premarket after the software giant posted slightly better than expected quarterly results and upbeat sales outlook. Company expects a double-digit revenue growth for the next fiscal year, thanks to rising demand for the cloud computing segment.
Visa (V.US) stock jumped 7.0% before the opening bell after the financial services company earned $1.79 per share on revenues of $7.19 billion and topped market estimates of $1.65 adjusted earnings per share and $6.83 billion in revenue, as it anticipates travel recovery will bring continued growth.
Robinhood (HOOD.US) stock fell 4% in premarket after news that the retail brokerage plans to lay off about 9% of its full-time employees citing “duplicate roles and job functions” after its expansion last year. Company will release its quarterly results later this week.
Boeing (BA.US) stock fell over 7% after missing Wall Street's projections as it faced rising costs on both commercial and defense programs.
