US market. Why did GOOGL sink into positive reporting?
Quotes at 17:15 MSK
March S & P 500 futures contract: 2727 (+ 0.23%)
March Nasdaq 100 futures contract: 6970 (+ 0.47%)
S & P 500 schedule online
External background: German DAX + 1.1%; Japanese Nikkei -0.19%; The Chinese market will not work all week due to the celebration of the New Year according to the lunar calendar.
US stock futures are growing up on premarket. On Monday, key indices added 0.7-1.2%.
S & P 500 fixed above the resistance of 2700 points. Now the local goal has moved to 2790 points. The closest support on the pullback is 2670 points.
USA and China. Earlier, Donald Trump announced a "good chance" to achieve a trade agreement with China. This must be done before March 1 during a meeting between the leaders of the two countries. Otherwise, the States will raise import tariffs on $ 200 billion of Chinese products from 10% to 25%. If a consensus is reached, this will be a positive factor not only for the papers of Chinese corporations, but also for the US IT sector, whose production chains are tied to the PRC.
Prospects for the monetary policy of the Fed. According to the fed funds rate futures segment, there is a high probability that the Fed will not increase its key rate this year. Yield Treasuries lay a similar alignment. For 10-year-olds, the indicator is in the region of 2.7%, and in the autumn, it was almost 3.3%. It is possible that during the March meeting, the FOMC will revise the forecast for an increase in the rate from stage 2 to stage 1 to 0.25 percentage points for this year.
Reporting Alphabet (-1.7%). The company's adjusted profit in the fourth quarter was $ 10.91 per share, which surpassed analysts' consensus forecast of $ 10.86. The holding's revenue grew by 22% (y / y), to $ 39.3 billion, with expectations of $ 38.9 billion. However, the increase in expenses for Alphabet embarrassed investors. Operating margin (margin) on operating profit dropped to 21% from 24%. By the end of 2018, Google's capital spending almost doubled and reached $ 25.5 billion.
After the close of trading in the US with a quarterly release will make Walt Disney.
The slowdown of the global economy. Continues to leave a weak statistics for the eurozone. Retail sales in December fell by 1.6% compared with November.
Shutdown may resume. Shatdaun in the United States ended on January 25 through a temporary agreement. According to Trump, Congress is unlikely to reach a compromise before February 15, when the deadline for temporary government funding expires.
On Tuesday night, the US president will deliver an annual message to Congress (State of the Union).