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: Strong Earnings Lift Stocks; Dollar Hits 20-Year High Vs. Yen

By (Pinchas Cohen/ OverviewApr 28, 2022 09:12AM ET
Opening Bell: Strong Earnings Lift Stocks; Dollar Hits 20-Year High Vs. Yen
By (Pinchas Cohen/   |  Apr 28, 2022 09:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • Corporate earnings results prop up equities
  • Dollar hits 20-year high versus Japanese yen
  • Gold recovers

Key Events

Better than expected earnings helped propel US futures on the Dow Jones, S&P 500, NASDAQ and Russell 2000 as well as European shares higher on Thursday. Clearly, traders believe better than expected results indicate the global economy can withstand recent pressures including inflation, the war in Ukraine and a resurgence of coronavirus in China.

Markets are now keenly awaiting results today from mega cap tech giants Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) after the US close.

Oil moved higher as European countries search for alternative energy sources to Russian natural gas.

Global Financial Affairs

All four US contracts were well in the green this morning, with NASDAQ futures racing ahead, almost up 2.5%. Growth stocks were back in the lead as traders have renewed optimism on continued economic growth dispelling recession fears.

Futures on the tech-heavy index were driven higher by Meta Platforms (NASDAQ:FB) which jumped 18% in pre-market trading after the social network announced results Wednesday after the close. Among other things, the release showed user growth was slightly higher than estimated.

European stocks also rallied on Thursday, with the STOXX 600 Index over 1% higher as all industry groups rose. TotalEnergies (EPA:TTEF), Glencore (LON:GLEN) and Capgemini (EPA:CAPP) outperformed, pushed up by positive earnings.

The French energy major TTEF announced first-quarter profits grew on surging energy prices but registered a $4.1 billion impairment expense for a liquefied natural gas operation in the Russian Arctic. TotalEnergies posted a $4.94 billion quarterly net profit, up from last year's corresponding quarter's $3.34. The company also announced the first interim dividend for the year of 0.60 euro per share, a 5% increase from last year.

TotalEnergies Daily
TotalEnergies Daily

The stock completed a small H&S Continuation Pattern between the Mar. 7 low and Apr. 22. The pattern ended with a downside breakout of a 200 DMA-reinforced neckline. At the same time, the price may have also completed a much larger, upsloping H&S top. Cautious traders may wait to see whether the pattern may still be forming into a Symmetrical H&S top, with the neckline at the $45.70 area, the December low. Note, however, that the ROC provided a negative divergence to the price, suggesting that perhaps the upsloping neckline is the correct interpretation.

Capgemini recorded a 17.7% increase in profits to 5.17 billion euros at constant exchange rates.

CapGemini Daily
CapGemini Daily

The price fell below the 200 DMA after the 50 DMA did so last month, triggering a Death Cross. Like TotalEnergies, the price may be forming a small H&S pattern, which could be part of the right shoulder of a much larger structure.

Earlier today, Asian shares were all green. Japan's Nikkei 225 jumped 1.75%, leading a rally, as the BoJ kept rates at 0%, extending an ultraloose monetary policy. The yen weakened against the dollar, pushing the USD/JPY to its highest level since March 2002.

Yen Daily
Yen Daily

The yen completed a falling flag, bullish after a 13-day winning streak, the longest winning streak for the dollar, or the longest losing streak for the yen on record. We predict the USD/JPY will aim at the 135.00 level, retesting the 2001 peak. Not only is that the flag's implied target, but the pair completed a bottom since 1988. We may be witnessing market moves in historic proportions.

Hong Kong's Hang Seng rose 1.65%, extending a rally to the second day for the first time in two weeks and the Shanghai Composite also rose 0.6%. Both indices probably benefited from recent comments from China that it would support economic growth.

US stocks on the S&P 500 found their footing yesterday, although they gave up the majority of a rebound, following the worst selloff since early March, testing February lows.

S&P 500 Daily
S&P 500 Daily

A lower price would establish a long-term downtrend. The momentum-based Rate of Change has been providing a continuous negative divergence to the rising cost, increasing the chances of an official trend reversal.

The NASDAQ 100 closed marginally lower but is down 2.5% for the week, the fourth straight week of losses totaling 12.5%


Unfortunately, the tech heavy-benchmark registered a second lower trough, establishing a long-term peak-trough downtrend. Conservative technicians would insist on another peak and trough to have a descending series independent of the final height of the uptrend.

The price also fell for the second week below the 100-week MA as the index fell to a 13-month low. Therefore, we think that the rally in Meta Platforms is too late to turn this heavy ship around.

The NASDAQ 100 and the Russell 2000 are already in bear market territory.

Treasury yields on the 10-year slipped and the dollar extended its advance to its sixth straight day and to a 20-year high.

Gold rebounded slightly from losses.

Gold Daily
Gold Daily

The yellow metal forms in an intraday bullish hammer, hammering out support on the Nov. 16 peak and the 100 DMA. However, the price seems to have broken the downside of a triangle, suggesting bears may be taking control of the trend. It's a wonder that the non-yielding asset has maintained these levels considering the greenback is the strongest in two decades. These are dangerous times in the market when textbook theories go out the window as traders attempt to write future rules.

Bitcoin rose for the second day, taking on a recently completed bearish flag as the price bounced off the bottom of a rising channel.

Bitcoin Daily
Bitcoin Daily

We have been waiting for the rising channel to the break to the downside, as its top tests the neckline of a large H&S top, reinforced by the 200 DMA, which has been falling.

Oil rose for the third day amid the ongoing high-stakes poker match between Russia and the rest of Europe.

Oil Daily
Oil Daily

President Vladimir Putin has halted the natural gas supply to countries that will not pay in Russian rubles.

Up Ahead

  • On Friday, the Eurozone releases CPI figures.
  • The US PCE index is published on Friday.
  • Canada publishes GDP figures for February.

Market Moves




  • Germany's 10-year yield declined to 0.81%


Opening Bell: Strong Earnings Lift Stocks; Dollar Hits 20-Year High Vs. Yen

Can Apple Keep Growing?

We look at 20+ financial metrics, such as operating income growth and revenue growth, to calculate Apple's financial health score, one of five key health indicators.

Unlock AAPL Insights Now
View all of Apple's financial health scores with InvestingPro+

Related Articles

Legal & General Investment Management
Fixed Income At A Glance By Legal & General Investment Management - Jun 24, 2022

Key points from June’s credit strategy meeting Tighter financial conditions led us to lower our short-term for the US, UK and global market to -1. We remain slightly positive at +1...

Opening Bell: Strong Earnings Lift Stocks; Dollar Hits 20-Year High Vs. Yen

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 (2)
Mumeen Alimi
Mumeen Alimi Apr 30, 2022 6:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
mohammadreza joneydi
mohammadreza joneydi Apr 29, 2022 10:09AM 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