US market. Corporate extravaganza
Quotes at 17:25 MSK
March S & P 500 futures contract: 2678 (-0.18%)
March Nasdaq 100 futures contract: 6844 (+ 0.1%)
S & P 500 schedule online
External background: German DAX -0.9%; Japanese Nikkei + 1.06%; Chinese Shanghai Composite + 0.35%.
US stock futures are consolidating on premarket. On Wednesday, key indexes added 1.6-2.2% against the background of Apple's positive reporting and the publication of the results of the Fed meeting.
S & P 500 is in the resistance zone of 2680-2700 points. With a break of 2700 points, the local target will move to 2790 points. On the pullback, the nearest support is 2600 points.
Results of the Fed meeting. From the statement on the results of the event the words about the further gradual increase of the rates disappeared. The Fed has stressed the need to show "patience" for the regulator to determine which key rate values might be appropriate. In addition, the Fed has released a separate statement, according to which, attempts by the regulator to reduce the $ 4 trillion balance can be completed earlier than expected.
During the press conference, Jerome Powell said that the main purpose of the Fed is to support the growth of the US economy, adding that in 2019 the growth rate will slow down compared to 2018. According to the head of the Fed, the regulator will adhere to a wait-and-see approach in monetary policy, evaluating incoming economic data. Powell believes that the arguments in favor of raising the key rate have weakened slightly, and the risks of too high inflation have decreased, in part because of falling oil prices.
Reporting Facebook (+ 10%) and General Electric (+ 9%). FB, unlike Tesla (-3.5%), exceeded analysts' forecasts and earned $ 6.88 billion in net profit in the last quarter, which was a record value in the company's history. In Q4, the number of active Facebook users (MAU, used the service at least once a month) increased by 9% y / y and amounted to 2.32 billion people.
GE's quarterly earnings fell short of forecasts, however, revenue surpassed expectations. Profit excluding one-off factors amounted to $ 0.17 per share, not justifying the average forecast of analysts at $ 0.22 per share. GE revenues increased 5% from the same period a year earlier, to $ 33.28 billion, with a consensus estimate of $ 32.23 billion.
After the close of trading in the US with a quarterly release will be made by Amazon. See “Weekly reporting calendar”
USA and China. The next round of trade negotiations takes place on Wednesday-Thursday. There are fears that the situation around the Chinese Huawei may complicate the dialogue. There are also quite complex issues of intellectual property rights and the need for large-scale structural reforms to correct imbalances in foreign trade. Donald Trump said that the final deal can be concluded only after his meeting with the leader of the PRC.
Shutdown may resume. Donald Trump believes that the next shutdown "is definitely possible." In his opinion, Congress is unlikely to reach a compromise before February 15, when the deadline for government financing will expire.