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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
