Nasdaq 100 Futures Rise on Amazon Earnings, APAC Open Mixed


Nasdaq 100, Hang Seng Index, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 indices closed -1.45%, -2.44% and -4.22% respectively
  • Amazon was up 14% in after-hours trading as it posted record sales despite rising costs
  • Markets in Asia and the Pacific look set to open mixed amid uneven US earnings. Traders Watch Tonight’s NFP Report

Amazon Earnings, Hong Kong Reopen, US Jobless Claims, Asia-Pacific on Open:

Wall Street Shares Slumped Thursday facebook wiped out a quarter of its market value after a dismal quarterly earnings report. In the meantime, Amazon – the last FAANG company to report results – has posted a big profit beat, and the share price rose 14% in after-hours trading. US equity futures recovered as a result, setting a mixed tone for the Asian and Pacific markets.

that of Amazon earnings per share (EPS) came in at $5.80, far ahead of analysts’ forecasts of $3.57. The company also posted a $12 billion profit from its investment in electric vehicle company Rivian. Fourth quarter sales hit a record $137.4 billion, reflecting a strong holiday shopping season amid Covid-related stimulus. Another bright spot is his advertisement business, which grew 32% in the quarter to $9.7 billion. The company set a lower-than-expected revenue target of $112-117 billion for the first quarter, but investors appear confident in the outlook. Amazon’s diversified business model can help the company meet future challenges, including rising labor costs and supply chain issues.

all five FAANG companies, in addition to Tesla, have reported their Q4 results. Netflix and Facebook have largely disappointed investors with lower-than-expected prospects and user growth, while Tesla, Apple, Google and Amazon have delivered stellar results. A mixed earnings picture underscores a challenging environment for tech giants to maintain growth momentum amid rising costs and the gradual end of the pandemic. However, demand for digital devices, goods and electric vehicles remains robust.

Top 10 Stocks by Market Capitalization in the Nasdaq 100 Index 02/03/2022

Nasdaq 100 Futures Rise on Amazon Earnings, APAC Open Mixed

Source: Bloomberg, Referus

Meanwhile, weekly initial U.S jobless claims data came in at 238k, compared to an estimate of 245k. A less than expected printout underlines the tight labor market conditions, driving the current non-farm payrolls report in the spotlight.

Market participants have forecast a 150,000 rise in nonfarm payrolls in January, but some agencies have forecast a drop of as much as 400,000. Earlier, the ADP report showed that the private sector cut 301,000 jobs last month due to rising Covid-19 cases and a broader slowdown in business conditions. If the nonfarm payrolls report turns out to be a big miss, it could allay Fed policy concernstightening and lead the US dollar lower.

Weekly U.S. Unemployment Claims

Nasdaq 100 Futures Rise on Amazon Earnings, APAC Open Mixed

Source: Bloomberg, Referus

Asia-Pacific Markets look ready to open mixed On Friday after a volatile session on Wall Street.The Hong Kong Market reopens today after the Lunar New Year holiday. Stock markets on the mainland will remain closed and will open next Monday. Japan FuturesSingapore, Malaysia and Thailand are in red, while those in Australia, Hong Kong, South Korea, Taiwan, India and Indonesia are in green.

Looking ahead, the U.Snon-farm payrolls report dominates the economic role next to Canadian unemployment rate. Read more from the Referus Calendar.

Nasdaq 100 Index technical analysis

The Nasdaq 100 Index fell lower after jumping from a key support level of 14,180. An immediate support level can be found at 14,500 – the 78.6% Fibonacci extension. Failure to stay above this level may result in a retest of 14,180 for support. The MACD Indicator is trending lower below the neutral midpointsuggesting that the short-term momentum remains weak.

Nasdaq 100– Daily chart

Nasdaq 100 Futures Rise on Amazon Earnings, APAC Open Mixed

Chart created with Trading Display

Hang Seng Index technical analysis:

The Hang Seng Index (HSI) has likely broken a “Falling Wedge” pattern from the top, as shown in the chart below. Since then, prices have retreated to test the upper trendline for support. Staying above this level could pave the way for a bullish trend reversal with an eye at 24,900 for resistance. The next level of support can be found at 22,800. The MACD indicator formed a bearish crossover, suggesting that bearish momentum could dominate.

Hang Seng Index – Daily chart

Nasdaq 100 Futures Rise on Amazon Earnings, APAC Open Mixed

Chart created with Trading Display

ASX 200 Index Technical Analysis:

The ASX 200 index broke below the floor of a range-bound zone between 7,200 and 7,500, exposing the next support level of 6,920 – the 61.8% Fibonacci extension. Prices are trying for a technical rebound this week with a view to 7,080 for resistance. The MACD indicator is about to form a bullish crossover, suggesting that selling pressure could ease.

ASX 200 Index – Daily chart

Nasdaq 100 Futures Rise on Amazon Earnings, APAC Opens Mixed

Chart created with Trading Display

— Written by Margaret Yang, strategist for Referus

Use the comments section below to contact Margaret or @margaretyjy on Twitter