Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Opening Bell: Despite Solid Earnings, Futures, Global Stocks Pause Ahead Of Fed

By (Pinchas Cohen/ OverviewApr 27, 2021 09:32AM ET
Opening Bell: Despite Solid Earnings, Futures, Global Stocks Pause Ahead Of Fed
By (Pinchas Cohen/   |  Apr 27, 2021 09:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • Rising yields increase reflation bets again
  • Tesla falls despite record profits 
  • Bitcoin recovers

Key Events

US futures on the Dow, S&P, NASDAQ and Russell 2000 wavered in pre-New York open trading on Tuesday as increased optimism from strong corporate results is being offset by a resurgence in coronavirus cases in developing countries. European stocks are fluctuating between slight gains and losses, following an Asian session which mostly saw declines.

Copper extended its rally toward a 2011 high. Gold was also higher.

Global Financial Affairs

Contacts on the Russell 2000 are outperforming for the second day in a row.

In Europe, the STOXX 600 Index was little changed at the time of writing. The FTSE 100 was no different, even though major stocks listed on the UK’s main benchmark recorded profits that beat forecasts. 

HSBC (LON:HSBA) boasted quarterly earnings that more than doubled, and the global lender saw a return to profits, with a 79% rise in pre-tax profit to $5.78 billion, pushing its stock price up 2.6% and extending an advance for a third day. Technicals, however, warn of a potential reversal.

HSBC Daily
HSBC Daily

The stock has been developing a descending triangle—a visual demonstration of how supply has been gaining on demand. If this continues into a downside breakout it would signal a top.

BP (LON:BP) enjoyed a quarter of rising oil prices, and the oil major said it would start a share buyback program. The stock jumped 2.5% higher, and was the top performer on the index. However, since then it has pared gains to about 1.7% after the company warned of “a high degree of uncertainty.”

Japan’s Nikkei 225 fell 0.5%, underperforming other regional benchmarks, after the country’s central bank reduced its inflation forecast as coronavirus restrictions dent sentiment. China’s Shanghai Composite was the only major regional index in the green, but only +0.04%. 

Overall it appears that investors are taking a wait-and-see approach ahead of the Fed’s decision and press conference on Wednesday. As US economic conditions improve, traders continue to wonder if there will be any let-up in the Fed's consistent strategy of extended support of the market.

On Monday, during the New York session, most US stocks scored fresh record highs thanks to robust corporate results, combined with the belief that the Fed won’t change its staunch support for the most expensive stock market in history, despite the country’s economy heading back to pre-pandemic levels.

While the Russell 2000 continued to outperform, gaining 1.2%, it is still 2.7% below its Mar. 15 all-time high and may be developing a bearish pattern.

Russell 2000 Daily
Russell 2000 Daily

The small cap index has been trading with a H&S top, while the RSI has been providing a negative divergence, falling in contrast to the price’s rise.

On Monday, both the NASDAQ, which gained 0.9% and the S&P 500, which rose 0.2%, registered records. Most of the main 11 industry groups gained, with Energy and Consumer Discretionary shares jumping the most. The Dow Jones fell 0.2%

Tesla (NASDAQ:TSLA) posted record net income of $438 million on the back of revenue which surged 74%. $101 million. A portion of the EV manufacturer's net income was due to Bitcoin’s rally, and CEO Elon Musk said his company sold 10% of its more than $1 billion Bitcoins to demonstrate its liquidity as a form of  alternative payment to cash.

Still, Tesla was sold off in late New York trading, in what we consider to be profit-taking.

According to the Chief Investment Officer at UBS Global Wealth Management, Mark Haefele, “muted stock-price reaction to the robust numbers is largely due to already-elevated expectations gong into the reporting season."

While that may certainly be true across the broader market, we think there is significant, additional upside momentum for Tesla’s stock.

Tesla Daily
Tesla Daily

The shares completed a back-to-back bullish flag, after already completing a H&S bottom.

While the market narrative is expecting increased inflation due to the recent rise in yields, we think a reverse is more likely, including in yields on the 10-year Treasury note.

10-year Treasuries Daily
10-year Treasuries Daily

Rates have topped out and added yet another bearish pennant, beneath which they are finding resistance since last week. We can also see the falling momentum, which could very well pull the rug out from under reflation traders, leading yields lower.

Rising yields pushed the dollar higher, after the greenback plummeted, having completed a rising wedge.

Dollar Index Daily
Dollar Index Daily

However, as the USD reaches the support of the preceding massive falling wedge since the March peak, we might see it take on its Mar. 31 high.

Gold managed to hold on to a small advance despite dollar strength and yields moving higher, suggesting bullish positions remain at play for the precious metal, following the small double bottom.

Gold Daily
Gold Daily

But as gold reaches the top of its falling channel, it will face more resistance.

Bitcoin climbed for the second day, but to a much smaller extent.

Bitcoin Daily
Bitcoin Daily

We expect this rise to be part of a return-move after completing a bearish wedge, and that prices will return to the $40,000 level.

Oil climbed after OPEC+ projected a strong recovery beyond the near-term demand destruction due to India’s COVID-19 surge.

Oil Daily
Oil Daily

Technically, though, we expect oil to fall. It is nearing the top of its falling triangle and is therefore likely to slip back toward $58. A downside breakout will likely target the $48 level.

Up Ahead

  • Earnings season continues with Microsoft (NASDAQ:MSFT) reporting results after the market close today.
  • Federal Reserve Chair Jerome Powell holds a press conference on Wednesday following the Fed meeting.
  • President Joseph Biden makes his first address as president to a joint session of Congress on Wednesday.
  • On Thursday, US GDP is forecast to show growth strengthened in the first quarter, bolstered by government stimulus.

Market Moves



  • The Dollar Index advanced 0.1%.
  • The euro dipped 0.1% to $1.2072.
  • The British pound declined 0.1% to $1.3881.
  • The onshore yuan was little changed at 6.484 per dollar.
  • The Japanese yen weakened 0.2% to 108.30 per dollar.


  • The yield on 10-year Treasuries advanced one basis point to 1.58%.
  • The yield on two-year Treasuries advanced one basis point to 0.17%.
  • Germany’s 10-year yield dipped less than one basis point to -0.26%.
  • Britain’s 10-year yield gained less than one basis point to 0.759%.
  • Japan’s 10-year yield climbed less than one basis point to 0.085%.


  • West Texas Intermediate crude gained 0.8% to $62.42 a barrel.
  • Brent crude increased 0.7% to $66.13 a barrel.
  • Gold weakened 0.1% to $1,779.15 an ounce.
Opening Bell: Despite Solid Earnings, Futures, Global Stocks Pause Ahead Of Fed

Related Articles

Michael Ashton
Watch Out For Rise In Money Velocity By Michael Ashton - Jun 29, 2022

As M2 money growth soared throughout the COVID and post-COVID period of direct stimulus check-writing funded by massive quantitative easing (QE), monetarism novices thought that...

Opening Bell: Despite Solid Earnings, Futures, Global Stocks Pause Ahead Of Fed

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Farah Exilant
Farah Exilant Apr 27, 2021 9:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sam Iam
Sam Iam Apr 27, 2021 8:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Looking forward to Biden's speech to Congress on Wednesday. I hope Pelosi doesn't tear up his speech like she did with Trump.
Faizan Ali
Faizan Ali Apr 27, 2021 8:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email