Archives of “April 2019” month

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Strong earnings so far with Visa, Microsoft and Facebook all higher

  
Analysis, US Market

Solid gains

It looks like a good day for earnings with Visa, Microsoft and Facebook all beating estimates.
Microsoft:
  • Rev $30.6B vs $29.9B expected
  • EPS $1.14 vs $1.00 estimate
  • Cloud computer also beat
Shares at $128.00 versus $125.30 at the close.
Facebook:
  • Revenue $15.08B vs $14.97B exp
  • Daily active users 1.56B vs 1.56B exp
  • Takes $3B legal expense
  • Shares up to $191 vs $182 at the close
Excluding the legal expense, it would have been a bigger win.
Visa:
  • EPS $1.31 vs $1.24 estimate
  • Operating revenue $5.5B vs $5.47B estimate
  • Shares $161.65 vs $161.50 at the close
This should be a tailwind for USD/JPY in the day ahead as money keeps flooding into US stocks (and out of Europe).
On the flipside, shares of Chipoltle were down despite some seemingly great earnings (it’s had a monster run this year). Paypal and some others are still to come. It’s a busy, busy day for earnings.

US Indices end lower on the day with modest declines. Nasdaq makes a new all time intraday high but closes lower

  
Analysis, US Market

Some selling into the close ahead of lots of data

The US stocks are ending the session lower on the day with modest declines. There were more selling into the close that tipped the indices lower. There a lot of earnings after the close and tomorrow.
The final numbers show:
  • S&P down -6.43 points or -0.22% at 2927.25
  • Nasdaq fell -18.806 at 8102.01 after making a new all time highs and falling off. The high reached 8139.55.
  • Dow fell 59.34 points or  -0.22% at 26597.05

Netflix upsizes bond sale to $900m as it prepares to fend off streaming rivals

  
  Analysis

Netflix has lowered its borrowing costs and increased the size of its new bond deal being sold to investors today, reflecting strong demand for the streaming giant’s debt.

The company is looking to sell $900m of bonds with a coupon of 5.375 per cent, up from initial expectations of $750m at 5.63 per cent, according to people familiar with the details. There will also be a €1.2bn bond at 3.88 per cent. Both slugs of debt are expected to have a maturity of 10.5 years.

In a statement, Netflix said it would use the money in part to buy and make content as it seeks to fend off looming competition in the streaming video market it pioneered. Disney, Apple, AT&T’s WarnerMedia and Comcast are all plotting streaming services to debut in the coming year.

EURUSD slips to lowest level since June 2017

  
Analysis, Forex

Takes out the 2019 low at 1.1175

The price of the EURUSD has slipped to a new low for 2019 and trades at the lowest level since June 2018.
The fall has taken the price below the 2018 low at 1.1175. It also fell below the 61.8% of the move up from the January 2017 low to the 2018 high. That comes in at 1.11858.  The low has reached 1.11628.  From the daily, the 1.11178 is the low from June 2017.
The EURUSD has moved to the lowest level since June 2017
IN an earlier post I outlined how the 1.12037 was the 50% of the day’s range. A move above would tilt the bias back higher. The price high since that post stalled at 1.1204 before resuming the fall lower.

AUDUSD continues its fall. Looks toward March lows

  
Analysis, Forex

The 0.7000 level eyed

The AUDUSD continues to move lower after the much weaker than expected CPI data released earleir today.
The 0.7000 level eyed
The low just reache 0.7019. The March low comes in at 0.70027 level (call it 0.7000). If you discount the “flash crash” from January, the low for the year comes in at 0.6981.
Risk for shorts I have pegged at the 0.70488-55 area. That is home to a number of swing levels. Stay below, keeps the sellers firmly in control.
The AUDUSD is looking toward 2019 lows

European shares end the session mostly lower. German Dax bucks the trend

  
Analysis, Global Indices

German Dax up 0.5%, France’s CAC -0.27%.  UK FTSE, -0.7%

The European shares are ending the session with mixed results.  Provisional closes are showing:
  • German DAX, +0.5%
  • France’s CAC, -0.27%
  • UK’s FTSE, -0.7%
  • Spain’s Ibex, -0.5%
  • Italy’s FTSE MIB, -0.79%
  • Portugal PSI 20, -0.31%

in the benchmark 10 year note sector fields were sharply lower with the German DAX down -5.5 basis points and closing back below the 0.0% level.

German Dax up 0.5%, France's CAC -0.27%.  UK FTSE, -0.7%

Boeing Q1 core earnings misses estimates

  
  Analysis

The company also suspends earnings forecast amid 737 Max worries

Boeing
  • Core EPS: $3.16 vs $3.25 estimate
  • Revenue: $22.9 bn vs $22.9 bn estimate
Boeing notes that they will issue the new guidance at a future date but on the front of it that doesn’t sound too good. The report mentions that the company spent $2.3 billion to buy 6.1 million of its shares before the Ethiopian Airlines crash in March and there’s no mention of any activity (including the grounding of its air fleet) after that.
Basically, they’re not offering a whole lot to investors who are looking for more insight on the fallout from the 737 Max crisis. But as highlighted above, the guidance forecast suspension speaks for itself I guess.
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