US STOCKS: Late Equities Roundup: Reversing Early Gains Ahead Earnings, NFP
Feb-06 20:02
- Stocks broke narrow ranges late Thursday, SPX Eminis and Nasdaq indexes trading mildly weaker for the first time all day, while the DJIA pared losses. Late session moves likely position squaring ahead of another round of earnings after the bell, not to mention Friday morning's headline January employment data.
- Currently, the DJIA trades 242.86 points (-0.54%) at 44632.73, S&P E-Minis down 5 points (-0.08%) at 6081.75, Nasdaq down 6.2 points (0%) at 19685.19.
- Energy and Health Care sectors continued to underperform in late trade: Valero Energy -4.76%, Baker Hughes -4.52% and Marathon Petroleum -3.89%. In Health Care, Molina declined 10.89% after missing earnings estimates on higher costs, Hologic -10.78% after several downgrades, while Becton Dickenson declined -6.87%.
- On the positive side, Financials and Consumer Staples sectors continued to lead gainers in late trade, banks and financial services shares supporting the former: Citigroup +2.74%,Wells Fargo and JP Morgan +1.18%, Bank of America +0.83%. On Financial services: Intercontinental Exchange rallied 4.15%, Invesco +2.54%.
- Food, beverage & tobacco shares buoyed the Consumer Staples sector: Philip Morris +10.02% on strong sales of nicotine pouch Zyn, Hershey gained 4.91% while Campbell's gained 1.05%.
- Earnings expected after today's close include: Monolithic Power Systems, Take-Two Interactive Software, Cloudflare Inc, Illumina Inc, Expedia Group Inc, Pinterest, Mohawk Industries, Skechers USA, Fortinet, Amazon and Microchip Technology.
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EURJPY TECHS: Trend Structure Still Bullish
Jan-07 19:53
- RES 4: 166.53 2.0% 10-dma envelope
- RES 3: 166.10 High Nov 6
- RES 2: 165.04 High Nov 15 and a key short-term resistance
- RES 1: 164.40 Intraday high
- PRICE: 163.44 @ 19:52 GMT Jan 7
- SUP 1: 162.46/160.91 20-day EMA / Low Jan 2
- SUP 2: 160.54 50.0% retracement of the Dec 3 - 30 bull cycle
- SUP 3: 159.51 61.8% retracement of the Dec 3 - 30 bull cycle
- SUP 4: 158.67 Low Dec 11
EURJPY has traded higher this week but remains below the Dec 30 high. The recent move down appears corrective and a bullish short-term condition is intact. The next support to watch lies at 160.54, 50.0% of the Dec 3 - 30 bull cycle. The 61.8% level is at 159.51. A resumption of gains would open 165.04, the Nov 15 high. Clearance of this hurdle would expose 166.69, the Oct 31 high and a major resistance.
AUSSIE 10-YEAR TECHS: (H5) Trades Through The December Low
Jan-07 19:46
- RES 3: 96.501 - 76.4% of the Mar 14 - Nov 1 ‘23 bear leg
- RES 2: 96.207 - 61.8% of the Mar 14 - Nov 1 ‘23 bear leg
- RES 1: 95.851 - High Dec 11
- PRICE: 95.440 @ 19:34 GMT Jan 7
- SUP 1: 95.373 - 0618 proj of the Dec 11 - 23 - 31 price swing
- SUP 2: 95.275 - Low Nov 14
- SUP 3: 94.590 - 1.0% 10-dma envelope
The Aussie 10-yr futures contract continues to trade below the Dec 11 high of 95.851. The contract has traded through the Dec low. A stronger bearish reversal would expose 95.275, the Nov 14 low and a key support. A break of this level would strengthen a bearish theme. For bulls, a reversal higher and a breach of 95.851, the Dec 11 high, would instead reinstate a bull cycle and refocus attention on resistance at 96.207, a Fibonacci retracement point.
COMMODITIES: Crude Gains Ground, Gold Support Remains Exposed
Jan-07 19:45
- WTI has gained ground today, amid signs of a tighter-than-expected prompt market. Traders are also keeping an eye on colder temperatures in the US and any impacts on production.
- WTI Feb 25 is up by 1.1% at $74.4/bbl.
- OPEC 12 output in December was 26.46m b/d, down 49k b/d on the month, according to a Reuters survey.
- For WTI futures, recent gains have exposed key short-term resistance at $76.41, the Oct 8 high. On the downside, a reversal lower would expose support at the 20-day EMA, at $71.10.
- Meanwhile, Henry Hub renewed its pull back to trade lower on the day. Despite this, prices remain supported by current cold weather, curtailed production and strong LNG export demand.
- US Natgas Feb 25 is down by 6.2% at $3.45/mmbtu.
- Spot gold has risen by 0.5% to $2,650/oz, amid reports that the PBoC expanded its gold reserves for a second month in December. Bullion held by the central bank rose to 73.29mn fine troy ounces last month, from 72.96mn previously.
- A bear threat in gold remains present, despite the latest recovery, with first firm support to watch at $2,583.6, the Dec 19 low.
- On the upside, a continuation of gains would instead signal scope for a climb towards resistance at $2,726.2, the Dec 12 high.
