US open: Wall Street creeps higher, Microsoft sales surge
Fiona Cincotta October 27, 2021 2:18 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 1.3733
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
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.