Investors Prepare For Apple's First $100 Billion Quarter
Apple will report its fiscal first quarter results Wednesday
January 27, and investors are preparing themselves for the first quarter in
history in which the iPhone maker delivers $100 billion in revenues. In fact, a
good portion of those revenues are expected to have come from the holiday sales
of the most recent iPhone 12 model.
While the pandemic has caused irreparable damage to a wide
swath of businesses, it certainly seems to have done nothing to hurt Apple’s
business as the tech firm is preparing to announce record revenues despite the
pandemic keeping its customers cloistered in their homes.
In addition to the strong iPhone 12 holiday sales, analysts
have also said they expect sales of Macs and iPads have remained quite strong,
driven by the needs of students and workers who have been forced to do their
studies and work from home since last March.
Even though Apple did face supply constraints after rolling
out the latest iPhone model in October, this has arguably been the best product
launch for Apple in five years.
Best for Apple is that consumers seem to be opting for the
higher priced iPhone models, looking for additional storage and processing
power, and thus boosting Apple’s revenues and profit margins.
And let’s not forget about Apple’s growing services
business, which is also expected to deliver record revenues and profits this
Analysts are expecting Apple to report earnings of $1.41 a
share, up from $1.25 a share in the same quarter last year. More impressively,
the consensus estimate for revenue is an astounding $102.54 billion, with over
half that coming from iPhone sales.
The USD Into A Slight Recovery
The rate of the USD appreciated during the European hours but was still into a lower side as traders made predict on an economic recovery from the Covid-19 pandemic.Presently, the USD trades at 0.82660000 EUR, which is a rise of 0.00620000 or 0.76% from the previous close of 0.82040000.The daily trading range is from 0.81820000 to 0.82700000, while the trading volume is 59.054K.At 3:05 AM ET (0805 GMT), the Dollar Index, which tracks the USD against a basket of six other currencies, gained 0.1% at 90.243.Joe Biden was sworn in as the 46th president of the United States on Wednesday there are higher possibilities of greater stimulus package.However, the plan of further massive borrowing to fund this additional stimulus and what this could mean to inflation.The European Central Bank preserved the same for the interest rates as is estimated to generate a hefty easing package only in December.
U.S. Daily Market Review
The main U.S. stocks declined today after advancing to all-time highs. This takes place as most traders and investors became more concerned that the virus will hamper growth for longer than predicted.The S&P-500 Index tumbled the first time in the four-day week. Yields on Treasuries fell and crude oil slid below $53 a barrel. Shares of IBM lost 10% following its earnings report that showed a loss in revenue larger than analysts expected. IBM marked $20.37 billion in revenue in the fourth quarter, coming below forecasts of $20.67 billion.The 10-year Treasury yield dipped on on Friday morning, as President Joe Biden’s idea for a $1.9 trillion stimulus package, which faces opposition in Congress just a week after he mentioned about the plan.Data firm IHS Markit reported that its flash U.S. manufacturing PMI jumped to reading of 59.1 in the first half of this month, the highest since May 2007, from 57.1 in December. A reading above 50 indicates a surge in manufacturing, which counts for almost 12% of the U.S. economy. U.S. home sales unexpectedly advanced in December, but surging house prices amid historically weak inventory.The National Association of Realtors announced that home sales added 0.7% to a seasonally adjusted annual rate of 6.76 million units last month.
European Daily Market Review
The main European indexes fell today with shares in Germany losing the most.The DAX slipped 0.86% while London's FTS-100 dropped 0.82% and France's CAC-40 is tumbled 0.67%.Pfizer and BioNTech have agreed to supply the World Health Organization’s COVAX access scheme aimed at lower-income countries, as reported by Reuters.The pan-European Stoxx 600 declined 0.7% in early trade, with travel and leisure stocks shedding 1.9% to lead the dropping pattern across the sectors.December’s U.K. retail sales added v0.3% month on month, lower than the +1.2% expected by analysts polled by Reuters.The German government calculated that Europe’s largest economy to advance around 3% this year. German Economy Minister Peter Altmaier is likely to present the government’s official estiamtes next week.
Crude Oil Prices Drop
Oil prices dropped this morning, falling further from 11-month peak, registered last week.The declining pattern was the result of worries that new pandemic restrictions in China will curb fuel demand in the world's biggest consumer.Now, oil trades at $52.470, which is another loss of $0.534 or 1.01% from the previous close of 53.004.The daily trading range is from $52.210 to 53.132, while the trading volume is 9.384K.Regaining mode of the fuel demand in China underpinned market advances late last year.In fact, a seasonal surge in China's gasoline demand during the New Year holidays will be moderated by the tightened restrictions this year.Furthermore, U.S. crude oil supply data from the U.S. Energy Information Administration will be reported later in the day. The data was delayed by a holiday and Wednesday’s inauguration of the new President Joe Biden.
Asian Daily Market Review
After posting solid gains in the wake of the Biden
inauguration in the U.S. on Wednesday, markets across Asia are off to a poor
start Friday even though Wall Street climbed to new record levels overnight.
Investors are taking some money off the table heading into the weekend as they
wait to see what actions Biden will take in his first days as President of the
In Australia the S&P/ASX 200 is modestly lower by 0.2%
heading into the afternoon session in Sydney. Shares of the big four banks are
trading lower and weighing on the broader market. Shares of ANZ are 1.1% lower,
NAB is down 0.9%, Commonwealth Bank has a 0.4% loss, and Westpac is falling
0.6%. Major miners are also falling, with BHP down 1.6% and Rio Tinto posting a
In Japan the Nikkei is down 0.4% as the Yen is steadying
around the 103.50 level versus the U.S. dollar. Shares of Softbank are down
1.3% and Sony has a 1.7% loss. Among the major exporters Toyota trades 0.6%
lower, Panasonic is rallying for a second consecutive day and is up 3.3%, and
Canon is falling 1%.
Mainland Chinese markets are mixed, with the Shanghai
Composite 0.2% lower, but the smaller cap Shenzhen Composite 0.2% higher. Over
in Hong Kong the Hang Seng is trading down 0.3%.
South Korea’s Kospi is bucking the falling trend with a 0.2%
advance, and in Taiwan the Taiex is falling 0.6%.
Southeast Asian markets are trading mixed as Malaysia’s KLCI
has a gain of 0.3%, but the Straits Times in Singapore is down by 0.6%.
Ford Is Now The Hottest Name In The Automotive Space
When you think of a big mover in the automotive space Tesla
automatically comes to mind. However this past week an unexpected name is
giving the electric vehicle manufacturer a run for its money. That contender is
Ford, and it is on track to post its best weekly performance since June, when
it was recovering from the pandemic influenced crash.
Shares of Ford have rallied nearly 23% higher over the past
three days as investor enthusiasm over upcoming electric vehicles combines with
positive comments from analysts and an upcoming earnings release to create very
bullish momentum for a stock that was thought to be dead money a short time
Thursday saw shares add another 6.2% after trading up by as
much as 11.9% on an intraday basis. That’s the highest level seen in Ford
shares since June 2018.
All the excitement has come in anticipation of an excellent
fourth quarter earnings report, and on the move into the electric vehicle space
for Ford. Earlier in January they unveiled an all-electric Mustang Mach-E
crossover that gained rave reviews from analysts who were allowed to test drive
More recently Ford has seen analysts from both Deutsche Bank
and Barclay’s highlight their bullishness over the upcoming 2021 product line,
and the expectations for an excellent fourth quarter earnings report.
Deutsche Bank on Wednesday said they see upcoming catalysts
for the stock that include the February 4 earnings call, as well as
expectations for solid guidance for 2021, and excitement over the upcoming Ford
Barclay’s added to the enthusiasm Thursday with their own
U.S. Daily Market Review
The main U.S. indexes move around record marks as most traders and investors counted on more pandemic relief and speedy vaccine plan under the new Biden administration.S&P-500 and the blue-chip Dow were about flat by 10:00 a.m. The giants of Alphabet Inc, Apple Inc and Amazon.com Inc boosted Nasdaq by 0.2%.U.S. homebuilding and permits jumped in December amid very weak mortgage rates. Housing starts rallied to 5.8% to a seasonally adjusted annual rate of 1.669 million units last month, according to the Commerce Department.The American economy is largely affected by large unemployment numbers.Jobless claims came to 900,000 for the week ended Jan. 16, as announced by the Labor Department.Shares of Mytheresa surged more than 37% in their U.S. market debut on Thursday.In the meantime, the USD declined for a third straight session today.
European Daily Market Review
European markets are still without a clear direction. The CAC-40 added 0.53% while the DAX gains 0.36%. On the other side, the FTSE-100 dropped 0.03%.The pan-European Stoxx 600 rallied 0.7% in early trade, with autos and banks climbing 1% to lead the rising path.The leading European leaders have welcomed the start of Biden’s presidency.Spanish cellphone company Cellnex surged 3.2% and German telecoms group Deutsche Telekom rose 0.7% after the two giants reported to work together on their tower business in the Netherlands.The ECB is very expected to preserve its rates. The euro currency advanced before a meeting of the European Central Bank later today.The common currency appreciated 0.2%, reversing a similar decline from the previous session.
Gold Prices Rallied
Gold prices advanced this morning during the Asian hours. Presently, the precious metal trades at $1868.81, which is a minor loss of $2.47 or 0.13% from the previous close of 1871.28.The daily trading range is from 1866.07 to 1874.97, while the trading volume is 102.063K.However, the precious metal eased from a two-week high.President Biden signed 15 executive orders on Wednesday after the inauguration ceremony covering COVID-19, climate change and also other initiatives.The European Central Bank is likely to preserve its easy money policy unchanged when it hands down its own policy decision later in the day.
Asian Daily Market Review
Asian markets are off to a strong start on Thursday
following the overnight gains on Wall Street that took U.S. benchmark indices
to new record highs.
In Japan the Nikkei is trading 0.7% higher despite strength
in the Yen versus the U.S. dollar that would normally be bearish for Japan’s
exporters. Shares of Softbank are trading up by 3.8%, while Sony has a more
modest gain of 0.4%. Among the major exporters Toyota is trading up by 0.8%,
while Panasonic is surging 4.1% higher and Canon is edging up by 0.2%.
Mainland Chinese markets are also in rally mode today, with
the benchmark Shanghai Composite adding 0.8%, while the smaller cap Shenzhen
Composite has a 1.2% gain. Meanwhile in Hong Kong the Hang Seng trades up by
Australia’s S&P/ASX 200 is rising 0.7% during
mid-afternoon trade in Sydney. Shares of the big four banks are supporting
market gains today as ANZ adds 1.1%, NAB trades 2.1% higher, Commonwealth Bank
adds 1.2%, and Westpac has a 1.4% gain. Shares of miners are also rising today,
with both BHP and Rio Tinto trading up by 1%. Fortescue Metals is off by 0.3%
however. Gold miners are also rising, with Evolution Mining trading 1.2% higher
and Newcrest Mining 0.9% higher.
In South Korea the Kospi is rising 0.9%, and in Taiwan the
Taiex is leading gains for the region as it has advanced 2.1%.
Southeast Asian markets are bucking the rising trend for the
most part however, with the KLCI in Malaysia and the Jakarta Composite in
Indonesia each falling 0.1%, while the Straits Times in Singapore adds 0.1%.
Crude Could Get A Boost In A Biden Presidency
Oil prices climbed higher for a second consecutive session
Wednesday as traders believe COVID-19 stimulus measures from the incoming
Presidential administration will outweigh the anti-fossil fuel stance that’s
been expressed by Biden and his team.
Traders feel that the increased political stability,
combined with a recovery in the U.S. economy in response to COVID-19 stimulus
measures, will all contribute to lifting oil prices in the coming months. After
all, more stimulus spending means more money available for business and
consumers, and the recovery from the COVID-19 pandemic is also expected to spur
The U.S. benchmark West Texas Intermediate crude was up 0.7%
on the day, while the global benchmark Brent crude added 0.8%. The gains are
coming for the simple reason that market believe more spending by the
government will equal more demand for oil.
While much of the current gains for oil are tied to the
proposed $1.9 trillion stimulus package, there are other factors to consider as
President Biden has gone on record as wanting to reduce the
need for fossil fuels in the U.S. and he could go about that in several ways.
One would be to ban fracking on Federal lands. That would actually be a
positive for crude as it would lower supply. However Biden is also expected to
be softer on Iran and could lift current sanctions, which would increase the
global supply of oil and lower prices.
Fortunately the current uptick in economic activity,
combined with OPEC production cuts, should keep the crude market in a supply
deficit through the first half of 2021, supporting prices in the process.
U.S. Daily Market Review
The main U.S. indexes of S&P-500 and the Nasdaq advanced to all-time high today as Joe Biden prepared to take charge as U.S. President.In fact, Biden outlined his $1.9 trillion American Rescue Plan, which will send aid to those mostly affected by the coronavirus pandemic. At 10:12 a.m. ET, the Dow Jones Industrial Average gained 164.52 points, or 0.53%, to 31,095.55.The S&P-500 surged 36.94 points, or 0.97%, to 3,835.85 and the Nasdaq Composite added 219.91 points, or 1.68%, to 13,418.23.The USD dropped versus the main pairs today as risk appetite held boosted optimism about a massive stimulus package under the new Joe Biden administration.In afternoon trading, the USD slipped around 0.4% against the yen to 103.54, falling to a two-week bottom earlier in the session to 103.45.The USD sunk to a three-year bottom versus the Canadian currency at C$1.2607.
European Daily Market Review
European markets are still without a clear market direction. The DAX added 0.58% while the FTSE-100 secured 0.05%. The French CAC-40 dropped 0.33%.The pan-European Stoxx-600 rallied 0.6% in early trade, with the technology sector adding 1.7% to lead the rising path.U.K. inflation jumped in December, despite stringent coronavirus restrictions over the Christmas period. In fact, Consumer Price Index (CPI) inflation surged to 0.6% in December from 0.3% in November, as reported by the Office for National Statistics.Logitech shares soared 5.8% in early trade after Morgan Stanley, Citigroup and JPMorgan all inclined their price targets for the Swiss-American software leader.
Crude Oil Price Surge
Oil prices advanced this morning during the Asian hours, preserving its rising path, marked the day before.Predictions indicated that the market expects Joe Biden administration to carry out the massive U.S. stimulus measures adding to the estimates for fuel demand and a draw down on crude oil stocks.Now, oil trades at $53.551, which is another rise of $0.561 or 1.06% from the previous close of 52.990.The daily trading range is from $52.990 to 53.560, while the trading volume is 8.987K.Secretary of the Treasury candidate Janet Yellen called the Congress to “act big” on pandemic relief spending during her Senate confirmation hearing. This serves to the expectations of a massive U.S. spending to help the economic recovery and growth from COVID-19.In the meantime, Germany yesterday, extended a lockdown for the majority of shops and schools for another two weeks to Feb. 14.Also, in the focus is the U.S. crude oil supply data from the American Petroleum Institute, coming out later today.