Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Big Tech and Big Oil, Yen Strength and Ant Mania - What's up in Markets

EconomyOct 30, 2020 07:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Big Tech's outlooks disappoint (with the exception of Alphabet (NASDAQ:GOOGL)), while Big Oil surprises to the upside (although crude prices are plunging again). The euro zone's economy rebounded more than expected in the third quarter, but the euro is still weak, in contrast to a resurgent yen. And Ant Group's IPO triggers a stampede of retail investor orders. Here's what you need to know in financial markets on Friday, October 30th.

1. Big Tech fails to reassure 

Silicon Valley’s finest rolled out results that beat expectations for earnings – handsomely so in the case of Alphabet and Facebook (NASDAQ:FB) – but which still gave cause for concern with outlooks that decidedly less bullish.

Facebook, Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) all fell in after-hours trading and stayed lower in premarket, on concerns about higher input costs, post-election regulatory risk and, in the case of Apple, the failure to give guidance for revenue in the current quarter, when the company expects the holiday season to kickstart a new supercycle for phone upgrades.

Only Alphabet stock reacted positively to the day’s news, rising 6.6% in premarket trade after the company said its advertising business rebounded in the quarter and promised it will break out its Cloud hosting business’s numbers separately in future.

2. Yen nears four-year high; euro not lifted by GDP

The yen was on course for its highest weekly close against the dollar in over four years, as the risk aversion prompted by the latest wave of the coronavirus pandemic in Europe and the U.S. pushed demand for the foreign exchange market’s favorite funding currency.

By 7:30 AM ET (1130 GMT), the dollar was at 104.44, just off the previous session’s low, after better-than-expected Japanese industrial production data for September. Japan’s exposure to the broader Asian economy appears to be supporting it too. Korea’s industrial output also beat expectations, up 8.0% on the year in September.

The euro, however, remained under pressure at $1.1653, after hitting a one-month low on Thursday in response to ECB President Christine Lagarde’s gloomy prognosis for the economy. Better-than-expected third-quarter gross domestic product data for the Eurozone, up 12.7% on the quarter rather than the 9.4% rise expected, did little to help, overshadowed by weak German retail sales numbers for September and another month of sub-zero inflation.

3. Stocks set to open lower; spending, income data eyed

U.S. stocks are set to open lower again on Friday, weighed down by the reaction to Big Tech earnings after the bell on Thursday.

By 7:30 AM ET, Dow 30 futures were down 183 points, or 0.7%, while S&P 500 Futures were down 0.7% and Nasdaq 100 futures were down 1.1%.

Aside from the Gigacaps, shares in Twitter (NYSE:TWTR) fell over 16% in premarket after social media platform warned of rising expenses and a possible hit to advertising spending in the fourth quarter related to the elections. The service also added only 1 million active users in the quarter, rather than the 9 million expected. One relative outperformer was Netflix (NASDAQ:NFLX), which announced it will raise prices for U.S. subscribers on Thursday.

The evident frailty of market sentiment suggests that data for personal income and spending at 8:30 AM ET will be monitored more closely than usual. The Michigan consumer sentiment survey follows at 10 AM ET.

4. Ant Mania 

Ant Group’s initial public offering continues to break records, with retail investors placing more than $2.8 trillion (yes, trillion) of orders for stock.

That’s more than the entire GDP of the United Kingdom, the world’s seventh-largest economy, or the entire market capitalization of the German or Canadian stock exchanges.

The Chinese financial services group, built around the Alipay payments system, has already completed the sale of stock to institutional buyers, at a price that will bring in at least $34.4 billion, and as much as $39.5 billion if – as seems likely in view of the overhang of retail bids – the underwriters exercise the greenshoe option.

5. Big Oil surprises to the upside; crude battered

Crude oil prices bounced from their lowest level in nearly five months but remained well below the lower end of their summer trading range.

By 6:25 AM ET, U.S. crude futures were roughly unchanged at $36.16 a barrel, up more than a dollar from Thursday’s lows but still on course for a drop of some 10% this week. The international benchmark Brent was likewise down 0.2% at $38.20 a barrel, on growing concerns that the surge in Covid-19 cases will lead to more demand destruction by the end of the year.

On the corporate front, however,  Chevron (NYSE:CVX) reported a surprise profit and Exxon Mobil Corp (NYSE:XOM) a narrower loss than expected for the quarter, while France’s Total (NYSE:TOT) reported better-than-expected earnings, again defending its pre-pandemic dividend level and saying it’s ‘resilient’ at $40 a barrel.

Baker Hughes’ rig count data rounds the week off at 1 PM ET

Big Tech and Big Oil, Yen Strength and Ant Mania - What's up in Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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 (4)
Bill Hoerter
Bill Hoerter Oct 30, 2020 10:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How is it that the Social Media giants and MSM are able to silence what they perceive as opposition. No difference from what we fought for in WWII. Never again.
Plopseven Schwartz
Plopseven Schwartz Oct 30, 2020 10:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you comparing Twitter to the Third Reich
Matthew PM
Matthew PM Oct 30, 2020 8:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You act like the msm gives a hoot.
Franco Dominguez
Franco Dominguez Oct 30, 2020 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
concern about cost??? really so they posted high profits and the market looks costs??
hamza khan
halal Oct 30, 2020 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so crude going further lower right?
Jay Am
Jay Am Oct 30, 2020 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No higher
Robert smith
Robert smith Oct 30, 2020 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jay Am   electric cars, will guarantee that that doesn't happen longer term
Lawrence Khodorkovsky
Lawrence Khodorkovsky Oct 30, 2020 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No its going lower
Derek Schuger
Derek Schuger Oct 30, 2020 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trucks,any electric trucks out there?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email