Opening Bell: Alphabet Miss, Samsung Fiasco Cloud Sentiment; Yields Drop
Investing.com | Apr 30, 2019 07:53
- U.S. futures, European shares slip on Alphabet (NASDAQ:GOOGL), Samsung's earnings debacle
- Financials outperform in the U.S., show weakness in Europe; Real Estate lags
- Treasury yields fall ahead of Fed's decision h2 Key Events/h2
- U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are in Beijing for another round of trade negotiations with Chinese Vice Premier Liu He that will continue next week in Washington D.C.
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Canadian GDP for February is released on Tuesday.
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Canadian IPPI and RMPI for March are released on Tuesday.
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Bank of Canada Governor Wilkins speaks Tuesday.
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Bank of Canada Governor Stephen Poloz speaks Wednesday.
- The Bank of England press conference .
- Data on Friday is expected to show non-farm payrolls rose by 185,000 and hourly earnings growth are forecast to have picked up to 3.3%.
Futures on the earnings disappointment and weighing on sentiment across Asian and European markets.
The warned about . The stock was down 7.73% in the pre-market.
In the earlier Asian session, China’s Russell 2000 (+0.46%) resumed its outperformance.
While Societe Generale’s head of Asia equity, Frank Benzimra, warned investors to be sector-focused at this time, our own sector analysis revealed inconsistencies in the current market dynamic.
cut rates , to deflate financial shares.
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Technically, the ETF completed a H&S bottom, a falling flag and closed above its downtrend line since January 2018, suggesting a longer way to go up.
Mirroring the same market structure inconsistency as financials was Real Estate's (-1.03%) underperformance: falling rates should boost the sector, as they would make mortgages more affordable and expected cashflow from property investments more competitive than Treasury yields.
UST 10-Year Daily Chart - Powered by TradingView
Conversely, yields on GDP data for the first quarter came in at 0.4%, beating the 0.3% forecast and up from 0.2% in the previous quarter.
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Earnings
- General Electric (NYSE:GE) (NYSE:report corporate results before market open on Tuesday, is likely to show a $0.09 EPS and a $26.98 billion.
- Pfizer (NYSE:PFE) (NYSE:report its earnings results tomorrow before market open. Analysts forecast a $0.75 EPS and $13 billion revenue.
- McDonald’s (NYSE:MCD) (NYSE:releasing corporate results tomorrow before market open, with a $1.76 EPS and $4.94 billion.
- Apple (NASDAQ:AAPL) (NASDAQ:will be closely watched after the company cut its revenue outlook for the first time in almost two decades earlier this year.
Stocks
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Canada’s S&P/TSX Composite closed down 0.08 percent Monday.
- China's Shanghai Composite rose 0.5%, the largest rise in more than a week.
- The MSCI Asia Pacific Index slipped 0.2%.
- The MSCI Emerging Market Index dropped 0.4%.
Currencies
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The Canadian loonie was up 0.24 percent against the U.S. greenback early Tuesday, trading at 0.7447.
- The Dollar Index was 0.1% down for the third day and an accumulative 0.45% drop, as a return move to an ascending triangle.
- The euro climbed by less than 0.05%.
- The MSCI Emerging Markets Currency Index fell 0.2%.
- The South Korean Won dropped 0.8% to the weakest in more than two years.
Bonds
- Canada’s 10-year yield was steady early Tuesday at 1.723.
- The yield on 2-year Treasurys fell two basis points to 2.27%.
- The yield on 10-year Treasurys fell one basis point to 2.51%.
- Japan’s 10-year yield was unchanged at -0.04%.
Commodities
- Gold climbed 0.3% to $1,283.17 an ounce.
- fall short of causing a supply-squeeze rally .
- LME copper fell 0.3%.
- Iron ore rose 1.2% to $92.70 per metric ton, the highest in more than two weeks.
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