The index jumped and continued its ascent from January. This comes as Meta’s rosy performance and a somewhat “dovish” Uncle Powell spur risk-on sentiment. As some of Big Tech’s earnings flow, the gains evaporate rapidly.
Essentially, we are seeing Apple missing the estimates for revenue and profit, and iPhone missed expectations, inducing concerns about the possibility of a slowdown in consumer spending.
Alphabet also sees its advertising business slowing down as revenue from YouTube drops 7.8%.
Then came Amazon, which released a mixed picture. Sales growth was slightly better, but profit came to light. Its Amazon Web Services unit (AWS) missed expectations by a drip.
As the market rolled within a large band, we suffered a loss in the session and will be looking to repair the position. When we are hopeful for better days after a robust run, we are mindful of being realistic of the possibility of an overstretch run-up of Nasdaq.
📮What’s on the menu today?📖
As Big Tech earnings are behind us, we will focus on the Nonfarm Payrolls at 9.30 pm. We should see a decline from 223K to 185K.
Likewise, Average Hourly Earnings should moderate from 4.6% growth to 4.3%, which will hopefully help with the waning inflation narrative.
Unemployment may tick up to 3.6% from 3.5%.
Service PMI will be released at 10.45 pm and should see improvement to 46.6 from 44.7.
Likewise, we welcome ISM Non-Manufacturing PMI for Jan, which should see expansion at 50.4 from 49.6 at 11 pm.
It is 3 Feb, 8.50 am in Singapore and 7.50 pm in New York. With yet another day of critical economic data, it is undoubtedly a busy and heavy week. A lesson learnt is not to force a trade and stick to a trading plan, as our fickle-shift positions result in loss.
Have a splendid final trading day of the week!
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