Beat the street: more earnings and Fed comments awaited; Alibaba; Uber; Disney; PayPal
US stocks head cautiously higher early in the session as investors await more earnings from the likes of Disney and PayPal after the bell.
Fed comments may add to expectations that the Fed does not need to cut rates early in spring. Alibaba misses estimates. Uber, all-sessions, down after results.
(AI Video Summary)
Alibaba and Uber earnings reports
In today's "Beat the street" video, Angeline Ong gives an update on the current state of the stock market and upcoming earnings reports. She mentions that US stocks are trading with hesitation as traders keep a close eye on major earnings reports and comments about potential interest rate cuts. She specifically highlights two companies, Alibaba and Uber, and their recent earnings results. Alibaba's revenue for Q3 fell short of expectations due to a weak Chinese market, while Uber exceeded expectations in terms of quarterly core profits and gross bookings.
However, Chris Vecchio from tastylive believes that these earnings reports should not be seen as representative of the overall US economy. He emphasises that the market is more concerned about the actions of the Federal Reserve and upcoming treasury auctions, which will give insight into inflation, growth, and the path of Fed policy. The Fed speakers scheduled for this week are not expected to change their stance, and more data is required to determine if there will be a rate cut in March.
Disney and PayPal due to report earnings
Angeline also mentions that Disney is set to report its first-quarter earnings, with moderate growth expected in all segments. Recent developments such as resolving strikes and agreements with industry partners are also of interest to investors. PayPal is another company due to report, with projected growth in earnings per share and revenues. Analysts believe that strong PayPal checkout experiences and growth in peer-to-peer payments will contribute to their positive results.
NASDAQ 100 and oil updates
The NASDAQ 100 has been trading near its all-time high, with the potential for further gains. However, there may be a consolidation period that could lead to a decline towards the uptrend line. The oil futures market is also being closely watched, as US crude oil stocks have risen according to API data, and the EIA has lowered its outlook for oil output growth this year. The daily chart for US crude indicates a potential breakout above the 50-day moving average, though analysts attribute the decline in oil prices to a demand issue rather than geopolitical factors.
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